Pure Energy Minerals stock soars on key permits for Nevada lithium project

Pure Energy Minerals’ (TSXV: PE) stock exploded Tuesday after it announced it has received all permits needed for the construction and operation of the direct lithium extraction (DLE) pilot plant at its Clayton Valley lithium brine project in Esmeralda County, Nev.

The final permit required to operate the DLE pilot plant became effective on Mar. 17, the company said, adding the pilot plant’s construction and operation at the Clayton Valley site are both now permitted.

The Vancouver-based miner is exploring and developing the 94.5-sq.-km Clayton Valley project, the largest mineral land holdings in the area, which adjoins and surrounds on three sides the Silver Peak lithium brine mine operated by Albemarle (NYSE: ALB).

Pure Energy’s partner, SLB (formerly Schlumberger), through its New Energy business, is responsible for the design, construction and operation of the pilot plant to produce lithium compounds in a highly sustainable manner.

“The development of the pilot plant and application of SLB’s sustainable lithium production process at Pure Energy’s Clayton Valley project has important potential for lithium brine projects. Its state-of-the-art approach to lithium production conserves water, has a considerably smaller footprint, and reduces environmental impact compared to existing evaporation pond design,” Pure Energy director Mary Little said in a news release.

“As the first project of its kind in North America, we are very pleased with the progress made by our partner, SLB, in advancing the pilot plant through the permitting milestones,” Little said. “The CV Project continues to develop, and we look forward to reporting advances as they occur.”

Pure Energy Minerals stock’s value nearly doubled in Toronto on the news, surging 89% to close at 69¢. Trading volume for the day reached 295,789 – the average daily volume is 14,067 — and the stock continued to gain this morning, trading at 72¢. The company has a $23.8 million market cap.