Tetra Technologies Completes Study on Arkansas Lithium and Bromine Brine Assets
Detailed Resource Analysis of Evergreen Brine Unit
Tetra Technologies has finalized a comprehensive Technical Resources Study for its Evergreen Brine Unit in Arkansas. This 6,138-acre unit, formed in collaboration with Saltwerx, a subsidiary of ExxonMobil, represents a significant step in resource development, being the first newly established brine unit in Arkansas in nearly 28 years.
The latest report goes beyond the initial inferred resource estimates, incorporating measured and indicated resources. This progression indicates a higher degree of confidence in the existence of these resources. The study estimates a total of 729,251 tons of lithium carbonate equivalent (LCE) using a conversion factor of 5.323 for elemental lithium.
Methodology and Assumptions
Resource estimates, inherently imprecise, depend on various assumptions detailed in the report. These estimates and brine ownership percentages assume the fulfillment of existing contractual obligations. The complete report is accessible on Tetra's website.
The study included the drilling and completion of a second test well, providing crucial data like lithium and bromine fluid analysis, reservoir pressures, and other vital information. RESPEC Company, a leading consulting firm, compiled the report with technical support from Lonquist Engineering.
Implications for Lithium and Bromine Production
Brady Murphy, President and CEO of Tetra, highlighted the significant findings of the report. The lithium resources, exceeding initial estimates, are believed to be the highest of any U.S. lithium brine resource with a compliant technical report. The estimated 22 tons of total lithium resources per acre position the Evergreen Unit as a prominent player in the U.S. market.
The early 2023 economic analysis report for bromine, along with the upcoming lithium front end engineering and design study, set the stage for converting these resources to reserves. The potential production span for both lithium and bromine could exceed 50 years, based on the estimated volumes and planned production rates.
