Illinois Carper Lithium Brine
International Battery Metal has entered into an Option for Purchase and Sale Agreement (“Option Agreement”) with Woodbury Resources, LLC of Denver, CO, and Bi-Petro, Inc. of Springfield, Illinois. The Option Agreement allows International Battery Metal to purchase 37,500 acres previously leased for oil, gas and lithium extraction by Woodbury and Bi-Petro in the ‘Woodbury Carper Lithium Resource Project’ located primarily in Cumberland and Jasper Counties, Illinois.
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, Illinois.
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.