Follow us on TwitterIntroducing new Hectatone™ products for 2014
Thermally stable organoclay for High Pressure High Temperature oilfield drilling applications.
Western Lithium is pursuing the opportunity to be a supplier of specialty drilling additive, hectorite clay, for the oil and gas industry, and in particular, to support the growth of high pressure high temperature, deep directional drilling applications (HPHT).
HPHT drilling environments are encountered for certain shale and deep offshore oil and gas deposits. Western Lithium believes that HPHT opportunities will continue to grow as new directional drilling technology is used to globally target new unconventional oil and gas reserves.
A 10,000 tpa clay facility is currently under design with a production commissioning plan for early 2014.
Lithium Project Overview Video
Western Lithium's wholly-owned Kings Valley Lithium Project is located in Nevada, USA. In December 2011, the Company completed a NI 43-101 compliant pre-feasibility study which indicates a $550 million NPV(1) and 24% IRR(1) once full production of 26,000 tonnes per year of lithium carbonate is achieved. Proven and probable reserves total 27 million tonnes(2) at an average grade of 0.395%, providing a 20-year mine life.
(1) At an 8% discount rate. (2) At a 0.32% lithium cut-off grade