Grounded Lithium Releases Kindersley Lithium Project Pre-Feasibility Study Results Mineral Reserves Booked on the KLP Supported By Rigorous Technical De-risking
CALGARY, AB, Oct. 13, 2026 /CNW/ -- (TSXV: GRD) (OTC: GRDAF) - Grounded Lithium Corp. ("GLC" or the "Company") is pleased to announce the results of the pre-feasibility study authored by Stantec Consulting Ltd. (the "PFS") on the Kindersley Lithium Project (the "KLP"). This significant milestone in the continuing advancement of the KLP is the first major project de-risking step achieved in conjunction with our project partner Denison Mines Corp. ("Denison"). The PFS assesses the first of several potential phases of development on the KLP. Mineral Reserves and Mineral Resources highlighted below are associated with 36 sections, or 13% of the total land area included in the KLP.
First declaration of Mineral Reserves for the KLP. This study includes the first lithium Mineral Reserves in the Kindersley area, and the first NI 43-101 compliant lithium mineral reserves publicly declared in Saskatchewan.
Significant de-risking of the project with a high degree of technical rigour. The study is based on advanced reservoir production modelling, using the reservoir data acquired in 2024 (see press release dated January 22, 2025).
Reflects independent third-party validation of the mining and processing methods and builds on the findings from the preliminary economic assessment completed in 2023 (the "2023 PEA").
The KLP production profile could be significantly improved in the future, dependant on additional drilling which has the potential to upgrade inferred resources to indicated resources and enhance already positive base case project economics.
Estimated pre-production capital costs of slightly over $600 million. The updated costing reflects significant advancement in the level of engineering design along with improved estimation precision. The PFS was prepared with a Class 4 cost estimate which are accurate to within -15 to -30% on the low side, to +20 to +50% on the high side.
The PFS signifies the conclusion of detailed evaluation on several key parameters involving geology, chemistry and extraction technologies, to potentially deliver a commercially attractive saleable product.
PFS Economic Summary
• Annual Average Production (LCE):
3,200 tonnes/yr
• Reserves (LCE):
82,499 tonnes
• KLP Project Economics
• IRR:
10.8 %
• NPV:
C$125.0MM (US$90.0MM)
• Project Capital Expenditures:
C$603.1MM (US$434MM)
• Annual Operating Expenditures(avg):
C$27.2MM (US$19.6MM)
• Unit operating cost of production:
C$8,581 (US$6,179) per tonne LCE
"The PFS represents more than just a major milestone for the KLP," commented Gregg Smith, President & CEO. "This provides a base from which we, along with our project partner Denison and others in this sector, can continue to pioneer a new industry in Canada for the benefit of the Canadian economy and numerous other stakeholders. From a GLC perspective, the PFS provides technical validation of the concept of extracting lithium from brines in the Kindersley area of southern Saskatchewan and establishes a value threshold for our shareholders with this targeted base-case analysis. Importantly, the PFS provides a clear path to enhance project economics through further delineation of the project's shallow and hydrocarbon-free reservoir."
Operational and Economic Summary
A significant feature of the PFS is the declaration of Mineral Reserves from a portion of the estimated Measured and Indicated Mineral Resources. Mineral Reserves represents the portion of Measured and/or Indicated Mineral Resource estimated to be economically mineable – thus moving the KLP closer to a commercially executable project. The PFS was authored by Stantec Consulting Ltd., an independent global engineering firm, and includes a financial analysis based on reasonable assumptions on the Modifying Factors (defined below) together with the evaluation of any other relevant factors which are sufficient for a Qualified Person, acting reasonably, to determine if all or part of the Mineral Resource may be converted to a Mineral Reserve at the time of reporting.
The PFS also features a significantly advanced analysis and understanding of the resource base and processing flowsheet. The project benefits from Denison's extensive metallurgical expertise and rigorous approach to project de-risking. The rigorous technical de-risking led to revisions in the 2023 PEA estimates of future lithium production from the sections of the KLP studied as part of the PFS. The PFS is based on an estimated approximately 3,200 tonnes per year LCE, compared to approximately 10,000 tonnes per year LCE estimated in the 2023 PEA (equivalent to 11,000 tonnes per year lithium hydroxide monohydrate). As mentioned, there is the potential to increase production levels through additional delineation drilling, and other extraction process improvements.
Resources/Reserves Summary
One of the key recommendations in the PFS is to work to upgrade the project's Inferred Mineral Resources to Indicated or Measured Mineral Resources, where possible, to increase planned wellfield production rates and total reserves. Such an upgrade generally requires additional exploration and infill drilling, sampling, geological interpretation, data verification and estimation sufficient for a Qualified Person to conclude that the quantity, grade or quality, densities, shape and physical characteristics of the mineralization are known with the higher level of geological confidence. Additional drilling within the KLP area could increase the Measured and Indicated Mineral Resources and favourably impact reserves, production rates and economies of scale for the project. Even with the reduced footprint of production in the PFS, base-case project economics remain positive, supporting further advancement of the project.
Notes:
(1)
Values may not add due to rounding
(2)
Mm3 = millions of cubic metres; MMbbl = millions of barrels
(3)
Back calculated weighted average based on total elemental lithium recovered during the production period divided by total produced brine volume. Changes in lithium concentration from the original average concentration of 73.8 mg/L reflect dilution from the reinjection of depleted (spent) brine into the reservoir for pressure maintenance to sustain production rates; resulting in a gradual drop in concentrations over the life of mine.
(4)
Saleable LCE include a Li process recovery of 87% and Li:LCE ratio 5.323
(5)
m3 = 6.29 bbl; 1 tonne = 1.102311 Ton
Upstream Resource Methodology
The KLP Phase 1 development program includes a network of 45 brine production wells targeting lithium-enriched brines ranging from 70.0 to 81.0 mg/L within the Duperow formation. Initial average annualized production rates per well are forecast to range from 156 to 1,782 m3/d (985 to 11,210 bbl/d). Total aggregate average annualized brine production is estimated at 30,000 m3/d (188,694 bbl/d). Minor reductions in annual lithium production will occur as the resource is developed, due to dilution from re-injection of depleted brine.
Produced brines will be transported from individual wellsites to a central processing facility ("CPF") via a network of approximately 46.6 km (30.2 mi) of buried pipelines. Following lithium extraction, depleted brine will be pumped from the CPF through an independent network of buried pipelines to the eight injection wells and three disposal wells. The injection wells will re-inject processed, depleted brine back into the Duperow reservoir for purposes of reservoir pressure management. Whereas the disposal wells will inject depleted brine into the deep, regionally extensive Deadwood formation saline aquifer if pressures exceed fracture pressure in the injection wells.
CPF Design and Flow Sheet Description
In parallel with resource delineation initiatives, the partners continue to assess leading direct lithium extraction ("DLE") technologies of which several were considered for purposes of the PFS. The DLE industry continues to evolve with new and improved processes and overall flowsheets being considered. These technical assessments continue as the project partners work toward the next stage of project advancement, which may involve more detailed engineering, cost assessments, and a field pilot. The KLP's economics continue to benefit from the shallow depth of the reservoir and the lack of sour gas and other hydrocarbons.
An adsorption-based DLE technology was selected for the PFS based on the following advantages:
No requirement for neutralizing reagents such as lime or soda ash;
Reduced filtration requirements and solids disposal; and
Production of a higher-quality eluate that may not require polishing.
The major processing areas of the CPF will include:
Brine storage and pretreatment to remove contaminants such as iron and suspended solids;
DLE system to extract lithium and produce a lithium chloride eluate;
Reverse osmosis, concentration, and ion exchange to concentrate the eluate and remove contaminants such as magnesium, calcium, boron, and silica;
Carbonation to convert LiCl to Li2CO3 or LCE;
Solids dewatering and washing to remove residual water and impurities (Na, K, B, Cl, and SO4) using a thickener, centrifuge, and/or vacuum belt filter; and
Lithium drying and bagging for final drying, cooling, micronizing, and packaging of the finished solid product.
Technical Report
A technical report in respect of the PFS (Technical Report) will be completed in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (NI 43-101) and will be filed on the Company's profile on SEDAR+ within 45 days of this news release.
Operational and Technical Abbreviations/Definitions
Modifying Factors: Modifying Factors involve parameters such as Mining Methods, Processing, Infrastructure, Economic assumptions, Marketing strategies and Regulatory provisions which will be fully detailed in the Technical Report filed within 45 days of this press release.
Mineral resources are reported using 2014 CIM Definition Standards and are inclusive of reserves. Mineral resources have a Reasonable Prospect for Eventual Economic Extraction. Doug Ashton, P.Eng., of Sproule International Limited, is a Qualified Person as defined in NI 43-101, and is responsible for the preparation of the technical information relating to the KLP mineral resource that is contained in this news release, with an effective date of June 26th, 2026. Doug Ashton has reviewed and approved the use and disclosure of such information in this news release.
Mineral reserves are reported using 2014 CIM Definition Standards and have demonstrated economic viability. Doug Ashton, P. Eng of Sproule International Limited, is a Qualified Person as defined in NI 43-101 and is responsible for the preparation of the technical information relating to the KLP mineral reserve and economic analysis that is contained in this news release, with an effective date of June 26th, 2026. Doug Ashton has reviewed and approved the use and disclosure of such information in this news release.
About Grounded Lithium Corp.
GLC is a publicly traded company whose main focus is the development of the Kindersley Lithium Project in conjunction with its project partner, Denison Mines Corp. The KLP encompasses a resource base of approximately 1.0 million metric tonnes of combined Mineral Reserves and Measured and Indicated Resources of lithium carbonate equivalent. The KLP's pre-feasibility study reports a NPV8 of C$125 million and an after-tax IRR of 11%, on a considerably smaller land base than that included in the 2023 PEA. Denison has the option to earn up to a 75% working interest in the KLP by funding in aggregate up to $15,150,000 comprised of both cash payments to GLC of up to $3,150,000 and funding project expenditures of up to $12,000,000 through a structured earn-in option. In addition to the KLP, the Company also develops oil and gas resources to supplement working capital to provide a diversified asset base.
GLC's multi-faceted business model involves the consolidation, delineation, exploitation and ultimately development of our opportunity base to fulfill our vision to build a best-in-class, environmentally responsible, Canadian lithium producer supporting the global energy transition shift. U.S. investors can find current financial disclosure and Real-Time Level 2 quotes for the Company on https://www.otcmarkets.com/.
Qualified Person
Scientific and technical information contained in this press release has been prepared under the supervision of Doug Ashton, P.Eng., of Sproule International Limited and Derek Loveday, P.Geo., Vining Wolff, P.Eng., and Karen Mathers, P.Geo., of Stantec Consulting Ltd., each of whom is a qualified person within the meaning of NI 43-101.
Forward-Looking Statements
This press release may contain forward-looking statements and forward-looking information within the meaning of applicable Canadian securities laws (collectively, "forward-looking statements"). These statements are made as of the date of this press release and the fact that this press release remains available does not constitute a representation by GLC that the Company believes these forward-looking statements continue to be true as of any subsequent date. Such statements include, but are not limited to, statements pertaining to the results of the PFS; the significance of the PFS as a project milestone and de-risking step; the commercial viability, future development and advancement of the KLP; the potential for additional drilling, resource conversion and resource expansion activities; the belief that additional drilling and well control may increase Measured and Indicated Mineral Resources, Mineral Reserves, production rates and economies of scale or otherwise improve project economics; estimated pre-production capital costs and operating costs; the potential to deliver a commercially attractive saleable product; the belief that the PFS supports the economic viability of the KLP, provides a path to enhance project economics and moves the KLP closer to a commercially executable project; the potential impact of additional delineation drilling and extraction process improvements; the evaluation, selection and implementation of DLE technologies; anticipated future project advancement activities, including engineering studies, cost assessments and field pilot work; future production forecasts and operating assumptions; the filing of the Technical Report in respect of the PFS within 45 days of this news release; and the Company's vision of becoming a best-in-class, environmentally responsible Canadian lithium producer supporting the global energy transition.
Forward-looking statements are based on a number of assumptions, including, without limitation, assumptions regarding the accuracy of the PFS and the technical and economic conclusions contained therein; the accuracy of Mineral Resource and Mineral Reserve estimates; the ability to convert Inferred Mineral Resources into higher-confidence resource categories through future drilling and evaluation programs; the ability of the Company and Denison to continue advancing the KLP; the availability of equipment, services, infrastructure and personnel; the performance and suitability of selected DLE technologies; commodity prices, capital costs, operating costs and exchange rates; the ability to obtain required regulatory approvals, permits and authorizations; and the Company's ability to execute on its development plans for the KLP. Although GLC believes that the assumptions underlying, and expectations reflected in, these forward-looking statements are reasonable, it can give no assurance that these assumptions and expectations will prove to be correct.
Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those expressed or implied by such statements, including risks relating to the assumptions underlying the PFS not being realized; uncertainties inherent in Mineral Resource and Mineral Reserve estimates; changes in commodity prices, capital costs, operating costs and economic conditions; risks associated with mineral exploration, development and technical studies; risks relating to the evaluation, selection, scaling and implementation of DLE technologies; the inability to convert Inferred Mineral Resources into higher-confidence resource categories; the possibility that future drilling, delineation work or technical studies do not result in increases to Mineral Resources or Mineral Reserves or otherwise improve project economics; regulatory, permitting, environmental and Indigenous consultation risks; financing risks; and risks relating to the Company's ability to advance the KLP with Denison. GLC's forward-looking statements are expressly qualified in their entirety by this cautionary statement. The forward-looking statements contained in this press release are made as of the date hereof, and the Company does not undertake any obligation to update or revise any forward-looking statements, except as required by applicable securities laws.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
SOURCE Grounded Lithium Corp.
For more information, please contact: Gregg Smith, President & CEO; Greg Phaneuf, SVP Corporate Development & CFO; Email: [email protected]
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