The Smackover is emerging as the DLE capital. Pic: via Getty Images.
Pantera increases landholding over the hotly contested Smackover, where Direct Lithium Extraction is set to rule
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- Daytona Lithium (Pantera 35%) expands Superbird lithium project by 58% to 8,416 acres
- Superbird is adjacent to lithium brine ground held by Exxon
- Negotiations underway to acquire another 7,000 acres
Pantera continues to grow its land position by 58%, across the lithium-brine rich Smackover Formation in Arkansas via its 35% investment in Daytona Lithium.
Daytona’s Superbird project covers part of the Smackover Formation, which has a long history of bromine brine processing and oil and gas operations.
Pantera secured exposure to the project in August after acquiring a 35% interest in Daytona by providing a $2m convertible note facility.
More interestingly for Pantera Minerals (ASX:PFE) and Daytona, the Smackover is increasingly gaining prominence as a prolific source of lithium-rich brines.
Enough so that major energy players have snapped up acreage with supermajor Exxon Mobil (NYSE: XOM) – better known for leading position in the oil and gas sector – reportedly spending >US$100m to acquire 120,000 acres of private leases from Galvanic Energy.
Along with an agreement to develop more than 5,100 lithium-rich acres in Arkansas, Exxon is estimated to have some 4Mt of lithium carbonate equivalent on its ground, enough to power 50 million electric vehicles.
This provides a strong hint to what might be present at Superbird as it is directly adjacent to Exxon’s ground.
The Smackover is also well known as being the global centre of commercial brine operations for the production of bromine through the use of direct extraction (adsorption) technology, the same technology which is being applied for the extraction of lithium.
Increased land position
Daytona has now acquired a further 3,091 acres of ground, taking the Superbird project up to 8,416 acres.
This was funded by drawing down on the $2m convertible note facility provided by Pantera.
Negotiations are also underway to acquire a further 7,000 acres of land.
“Achieving a 58% increase in its Superbird project landholding in under four weeks is an extraordinary achievement for Daytona Lithium, led by newly appointed country manager Cleve Thomas,” Pantera chief executive officer Matt Hansen said.
“Furthermore, with its exclusive abstract arrangement in place Daytona Lithium is primed to continue to grow its acreage position in the ‘Smackover Formation’, which is fast emerging as a hot spot for US lithium production.”
Work ahead
Besides looking to expand their landholding, Pantera and Daytona are working to ascertain the possibility of generating a lithium exploration target from the advanced geological and petrophysical data that is available from historical oil and gas exploration and production conducted on Superbird.
Discussions with direct lithium extraction technology providers will also begin imminently.
Scoping is also underway for initial well location to test brine flow rates and lithium grade on leased acreage position.
This article was developed in collaboration with Pantera Minerals, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
