Prima Diamond to Acquire Green Energy Lithium Project

February 18, 2016

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Prima Diamond Corp. (TSXV:PMD) announced that it’s entered into an agreement to acquire the Utah-based Green Energy lithium property. The vendors of the property are Zimtu Capital Corp. (TSXV:ZC) and Mesa Exploration Corp. (TSXV:MSA).

The company is also proposing a share consolidation and a non-brokered private placement; furthermore, it said it’s entered into settlement agreements with various creditors.

Highlights of the property are as follows:

The Green Energy Lithium Property encompasses 4,160 acres and is located 15km west of the city of Moab.  The Property exists over an extensive area with historic fluid analysis assays ranging from 81-1,700 mg/l lithium in saturated brines.  The brine was discovered in the 1960’s when over pressurized oil exploration wells encountered blow-outs upon drilling.  Approximately 20 wells have been drilled on the Green Energy Property.  Of these, 5 have analytical data for lithium.

Historic exploration of the property was conducted by Fidelity Exploration and Production Co., U.S Borax, King Oil Co. and Amerada Co. since the 1960’s. In March 2011, Mesa Exploration completed a NI 43-101 technical report which reviewed the geology and historic work performed on the property. This review concluded that there exists a historic resource estimate of 15 million barrels of brine containing 96,000 tons of sodium, 158,000 tons of potassium (302,400 tons of KCl), 5,750 tons of lithium (30,535 tons of Li2CO3), 157,000 tons of calcium and 147,000 tons of magnesium (576,450 tons of MgCl2)  (Gwynn, 2008).

Click here to read the full Prima Diamond Corp. (TSXV:PMD) press release.


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Category: Diamond