Illinois Carper Lithium Brine Resource Project
Cumberland and Jasper Counties, Illinois
Rheingold Exploration has recently announced an agreement which allows it to option and
purchase 37,500 acres of private leasehold in Illinois that are believed to hold a large resource
of lithium-rich brine within an ancient delta. Preliminary lithium contents in the brine have
been measured at 108 to 243 ppm.
Rheingold plans to undertake a program of further evaluation of the property, including NI 43-
101 compliant testing and reporting. If these results confirm preliminary readings, this project
could provide Rheingold with its first major lithium asset.
Rheingold Exploration Corp. (CSE:RGE) (“Rheingold” or the “Company”) announced on July 24, 2017 that
it has entered into an Option and Purchase and Sale Agreement (“Option Agreement”) with Woodbury
Resources, LLC of Denver, Colorado and Bi-Petro, Inc. of Springfield, Illinois, whereby Rheingold has an
option to purchase 37,500 acres previously leased for oil, gas and lithium extraction by Woodbury and Bi-
Petro in the “Illinois Carper Lithium Brine Resource Project” (“the Project”).
The total option and purchase price, subject to the Company completing its due diligence, is US$8.0
million, payable as follows:
- $100 on signing;
- $99,900 in 90 days from signing;
- $2,000,000 in 6 months from signing, of which the Company may pay fifty percent in common
- $2,000,000 in 12 months from signing, of which the Company may pay fifty percent in common
- $3,900,000 in 17 months from signing, of which the Company may pay fifty percent in common
The Project represents a lithium resource development opportunity at shallow drilling depths (less than
4,000 feet) in the heartland of the United States, located on fee acreage that is easy to permit and drill,
with several existing wells capable of producing large volumes of lithium-rich brine. Assets that would be
included under the Option Agreement include three wells, of which two are producing, and the third is
not yet completed. The assets also include a permitted salt water disposal well, which may be used to
dispose of the brines after extracting lithium. The Project is located in Cumberland and Jasper Counties,
The Project was identified for the Company by Hunter Stuart Energy Advisors (“Hunter Stuart”). Hunter
Stuart Energy Advisors has previously been hired by Rheingold to locate and evaluate prospective lithium
The zone of interest in the Project is the Mississippian-age Carper Sandstone, a known oil and gas producing zone in the
State of Illinois. The optioned property covers an accumulation of Carper Sandstone that was deposited in an ancient delta referred to as the
“Woodbury Carper Delta”. The Delta has extensive accumulation of sandstone intervals that are believed to hold a large resource of brine.
The lithium was discovered as a result of Bi-Petro drilling three exploratory wells in the search for oil and gas from the New
Albany Shale and Carper Sandstone. All three wells had significant shows of oil in the Carper Sandstone at 3,600-3,800 feet
and shows of gas in the New Albany Shale at 4,000-4,100 feet, which led Bi-Petro to set production casing and test the wells.
Two wells that are included in the Project assets produced brine from the Carper Sandstone that have been tested for
lithium content and had readings from known and credible laboratories measured at 108 ppm and 243 ppm .
The Company plans to conduct additional testing and laboratory evaluation of the existing producing
Project wells using methods that are NI 43-101 compliant, and make a decision whether to proceed with
the acquisition and development of the property.
The Property offers numerous attractive features for a lithium resource project:
- Potentially high lithium content.
- Potentially large resource.
- Located in a rural area that has existing road, electrical, and natural gas infrastructure in place.
- The leasehold is on privately-owned land, which means that the permitting process for drilling
wells and installing production is simple and fast (it takes less than a month to get a drilling permit
on privately-owned “fee lands”, versus sometimes up to years to get a permit on Federal Lands).
About Rheingold Exploration Corp.
Rheingold is a Vancouver-based exploration company currently focused on the exploration and
development of natural resource projects targeting metals used in the manufacturing of traditional and
ON BEHALF OF THE BOARD
Logan Anderson, CEO
This release may contain certain forward-looking statements with respect to the financial condition, results of operations and business of the Company and certain of the plans and objectives of the Company with respect to the same. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.
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