More companies hunting for lithium in northern Saskatchewan

Saskatchewan already has lithium projects— for example Prairie Lithium is working toward extracting lithium from underground brine water in southeast Saskatchewan.

But the search for lithium in northern Saskatchewan is very different. That’s because in the north, lithium is contained in rocks in the precambrian shield.

“In the geology of northern Saskatchewan, there’s certainly the right types of rocks at certain locations that could potentially have…lithium,” said Ansdell.

He said the most likely locations are in rocks called pegmatites, which he explained are a type of igneous rock something like granite.

Stenyer said a number of companies are actively looking, including Acme Lithium and Brunswick Exploration. His own company, ALX Resources, has two projects, Reindeer Lithium Project east of La Ronge and Crystal Lithium Project, northeast of Stoney Rapids.

But Stenyer said one of the big problems is that there has been little exploration for lithium in northern Saskatchewan, because no one was looking for it. So while there are promising locations, no one is sure if there’s enough lithium in northern Saskatchewan to justify a mine.

“Because what we’ve been up against is that all the exploration done, say in the last 50 years, there was no focus for LCT (lithium bearing) pegmatite…no one was looking for them,” said Stenyer.

“So that’s why we all have to wait till the snow clears. Get out there on the ground. And check out the pegmatites,” he said.

The push to find hard-rock lithium is not confined to Saskatchewan. Professor Ansdell said there is work underway in several provinces.

“I see very interesting plays on lithium…eastern Manitoba and northwestern Ontario,” he said, along with northern Quebec. “I would say it’s hot across the country.”

The provincial government also sees potential.

“In the last year or two there has…been significantly increased interest in exploration for lithium in…Saskatchewan’s north,” said a statement from Ryan Morelli, the province’s Chief Geologist. “Although this exploration in the north is in its very early stages and in a much different geological environment, there is good potential for discoveries,” he added.

Stenyer said prices for lithium reflect the growing demand, even though prices have dropped in recent months.

“It’s still $60,000 a metric tonne…it’s still big,” he said. “When I started in the lithium business in 2015…the price was $6,500 U.S. a tonne.”

Stenyer added the recently announced tripling of the Saskatchewan Mineral Exploration Tax Credit should help spur more interest.

“I think it is a great leap forward…this will encourage mineral exploration investment in Saskatchewan, which was lagging behind other provinces,” he said.

However, it’s a long way from exploration to building a mine, even if enough lithium is found. That would take years, and a lot of work.

“There’s going to be a lot of consultation with local communities, indigenous, and otherwise, there’s a lot of environmental assessments that could go on,” said Ansdell.

“The development of a mine is often linked with, what are we going to do with waste rock,” added Ansdell. “And how are we going to remediate the mine when it’s finished?” But at the same time, he said, if the regulations are met, and the deposit is worth it, lithium mines don’t have any bigger challenges than many other types of mines.

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doug.lett@pattisonmedia.com

Twitter: @DougLettSK

by Doug Lett

More companies hunting for lithium in northern Saskatchewan

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