Location and Access

The Peace River Property (the “Property”) is situated in northwestern Alberta approximately 90 kilometres north of northwestern Alberta’s largest city, Grande Prairie by highway 2. The Property is situated just west of the Dunvegan Bridge on the south side of the Peace River. From Highway 2, the Property can be accessed by well-maintained gravel roads. The general location is shown in figure 1.

Figure 1: General location map of the Property

Property and Target Geology

The bedrock geology of the Property is comprised of the Shaftsbury, Dunvegan and Kaskapau Formations.

The Shaftsbury Formation is charaterized as a friable dark marine shale with a siltatone layer bearing fish scales in the centre. Thin bentonite streaks and rare iron stones are also noted. The formation gets more silty moving westwards into British Columbia. The Shaftsbury measures up to 170 metres in thickness and is pervasive throughout the Peace River Country.

The Dunvegan Formation is described as marine, non-marine and deltaic sandstone, light grey to yellowish buff in the type area. Beds may be massive, with sedimentary cross-bedding structures. Thin beds of shale, shelly limestone and coal are also present. The Dunvegan is dominantly marine in the area of the Property, but completely continental in northeastern British Columbia. The formation ranges from 160 to 180 metres thick in the general environs of the Property. The Dunvegan carries an abundant shallow water fauna in the type area and in the Kakwa River area. It carries an extensive dicotyledon flora in northeastern British Columbia. Oysters, mussels, unionids and Inoceramus are common in Alberta, with I. rutherfordi indicating correlation with the Belle Fourche Shale of Wyoming. An arenaceous assemblage of Foraminifera dominated by Trochammina is found in brackish water tongues. The flora carries Platanus, Pseudocycas unjiga and numerous conifers and cycads, and ferns.

The Kaskapau Formation is predominantly a dark grey, fissile, carbonaceous shale. It is friable near the base on the Smoky River and near Dunvegan, but is quite sandy on the Pouce Coupe River. Clean sandstone tongues are noted near the base. These sands include the Doe Creek Sand, Pouce Coupe Sand and the somewhat later Howard Creek Sand which is noted in the Spirit River area. Thin volcanic ash beds occur sporadically throughout the formation. The Kaskapau Formation has highly variable thicknesses. It ranges from about 160 – 170 metres in thickness in Alberta to as thick as 900 metres in the foothills of British Columbia.

The target for lithium brines on the Property are carbonates of various ages. These carbonates are present as the Schooler Creek Group Carbonates (Triassic) and carbonates in the Madison Group Carbonates (Carboniferous).

Target 1: Schooler Creek Group Carbonates (Middle to Upper Triassic)

In the subsurface the Schooler Creek Group comprises four formations (Halfway, Charlie Lake, Baldonnel and Pardonnet). These formations are described below.

Halfway Formation: dolomitic to calcareous sandstone, with lesser beds of siltstone, dolostone and skeletal limestone.

Charlie Lake Formation: intercalated dolomitic to calcareous sandstone, siltstone, sandy limestone, dolostone and minor intraformational and/or solution breccia;

Baldonnel Formation: a pale grey to brownish grey weathering, cliff forming limestone and dolostone, with rare siltstone and very fine grained sandstone;

Pardonnet Formation: a dark grey to brownish grey weathering, very carbonaceous-argillaceous limestone, silty limestone, calcareous and dolomitic siltstone, and minor shale;

Target 2: Madison Group Carbonates (Carboniferous)

According to the literature the Madison Group consists of a limestone sequence that contains argillaceous limestones and calcareous shales in the lower part. Also of note are massive brecciated limestone zones in the upper part of the Madison. The limestones exhibit increasing dolomite content southward to Wyoming. Anhydrite and salt occur in the upper part in eastern Montana and the Williston Basin. Three evaporite cycles are recognized. The Madison Group generally ranges from 457 to 640 metres in thickness.

Lithium Brines Potential

A total of three (3) old wells drilled on the Property have values for lithium brines (mg/L) according to data available from the Alberta Energy Regulator (“AER”). Also according to the AER two of these have been abandoned. These old wells show potential for Triasssic and Carboniferous aged carbonbate formations to host lithium brines. Two wells in particular have two distinct carbonate horizons bearing lithium in brines as seen in figure 2. Table 3 summarizes formations, their thicknesses and grades of lithium in mg/L. Also of note is the Viking Formation, much younger in strata which is a clastic and exhibits a low amount of lithium.

Table 3: Lithium in Carbonates (mg/L) From Old Well Data

All the above data in table 2 is taken from the Alberta Energy Regulator’s public data set

Figure 2: Geology and lithium potential of the Peace River property