Government of Alberta Alberta Energy Contents Resource Revenue and Operations Division Introduction 3 Coal and Mineral Development Unit Metallic and industrial minerals 4 North Petroleum Plaza 2018 metallic and industrial mineral exploration 9945-108 Street NW highlights 4 Edmonton, AB T5K 2G6 2018 industrial mineral quarry activities 8 Coal 9 Phone: 780-427-7707 2018 coal exploration and advanced project Email: [email protected] highlights 10 Web: www.alberta.ca/ministry-energy.aspx 2018 coal mine activities 10 www.energy.alberta.ca/minerals Alberta Energy Updates 14 www.energy.alberta.ca/coal Online staking and royalty reporting 14 Lithium workshop 14 All Alberta Acts and Regulations are available online: Energy and Mines Ministers’ Conference 14 www.qp.alberta.ca/Laws_Online.cfm Alberta Geological Survey 15 2018 Geological Framework 15 Permit and Leasing Toolkits 2018 Mineral Resources of Alberta Map 16 www.energy.alberta.ca/minerals/MPLT Alberta Interactive Minerals Map 16 AGS Open Data Catalogue 17 Mineral Core Research Facility 17 Selected new publications 17 Alberta Geological Survey 17 Coal and Mineral Development in Alberta Year in Review Land-use planning 17 January 2019 South Saskatchewan Regional Plan and the Castle Parks 17 Caribou range planning 19 ISBN 978-1-4601-4283-7 (Print) Mineral sales restriction and tenure extensions 19 ISBN 978-1-4601-4284-4 (PDF)
ISSN 2291-1545 (Print) ISSN 2291-1553 (Online) The information contained within this report has been collected from publicly available government information, “Coal and Mineral Development in Alberta Year in Review” company websites, press releases, and reports filed on Sedar is published annually by Alberta Energy (www.sedar.com). All figures quoted are current as of the time of publication. Please consult the company websites for specific © Her Majesty the Queen in Right of Alberta, as information regarding any projects outlined in this report. Any other references are noted within the document. The authors represented by the Minister of Energy, 2019 make no warranty of any kind with respect to the content and accept no liability, either incidental, consequential, financial or This document is made available under the Open otherwise, arising from the use of this document. Government Licence – Alberta (http://open.alberta.ca/licence)
CMD Year in Review-08 (2018)
A PDF of this document can be downloaded from https://open.alberta.ca/publications/2291-1553.
2 Coal and Mineral Development in Alberta Introduction Lithium was the main focus of metallic and Metallic and industrial minerals permits industrial mineral exploration in Alberta in 2018. 093 Metallic and Industrial Minerals Permit This past year, however, the focus shifted from A93 Metallic and Industrial Minerals Permit Application identifying potential lithium resources and acquiring 6,000 rights to development of technology to recover 5,000 lithium from brines. The technology to economically recover low concentrations of lithium from large 4,000 volumes of water in a short time remains the main hurdle to lithium development in Alberta. If this can 3,000 be accomplished, it would be a major advantage 2,000 over traditional brine extraction operations, which Area ('000 ha) require 18 to 24 months of evaporation in large 1,000 evaporation ponds. 819 53 551 2 492 34 526 18 675 41 0 Another prospective unconventional mineral 2014 2015 2016 2017 2018 source, which saw increased interest in 2018, is Figure 1. A bar graph with the total area of metallic and vanadium as an oil sands by-product. There is industrial minerals permits and permit applications from 2014 ongoing research into recovery of vanadium from through 2018 (the report period is October 1 through September 30). Numbers at the base of the bars indicate the number of bitumen, petroleum coke, and fly ash from the oil individual permits or applications. sands. This is in addition to the vanadium resource already being explored in the Clear Hills deposit. There was advancement on a number of coal mines or coal mine projects in 2018. The Grassy Mountain coal mine project formally entered into Metallic and industrial minerals leases a joint review panel process after having all of its 094 Metallic and Industrial Minerals Lease regulatory applications accepted by federal and A94 Metallic and Industrial Minerals Lease Application provincial regulators. Exploration continued on Ram 350 Coal’s Aries metallurgical coal project near Rocky 300 Mountain and on Altitude Resource’s Palisades property. 250 The Grande Cache coal mine was purchased 200 by CST Canada Coal and resumed coal mining 150 operations in 2018. Teck Resources completed work and submitted regulatory applications to Area ('000 ha) 100 extend the life of its Cardinal River mine. The mine 50 expansion would be on the currently active Cheviot 326 8 323 0 322 3 308 4 311 1 0 coal mine permit and they will continue to process 2014 2015 2016 2017 2018 coal at the current plant on the Luscar coal mine permit. The Vista coal mine has announced that it Figure 2. A bar graph with the total area of metallic and industrial minerals leases and lease applications from 2014 through 2018 will start mining operations on the greenfield site (the report period is October 1 through September 30). Numbers near Hinton in 2019. at the base of the bars indicate the number of individual leases or applications.
2018 Year in Review 3 Metallic and industrial minerals Lithium exploration activity remained high in 2018. Metallic and industrial minerals licences Interest in exploration and development of lithium 2,400 092 Metallic and Industrial Minerals Licence is being driven by increased demand for battery- 2,200 powered devices and vehicles. In addition to 2,000 1,800 identifying lithium resources, companies focused on 1,600 the development of technology of lithium extraction 1,400 methods. Alberta is also seeing increased interest 1,200 in vanadium. This is being driven in large part by Number 1,000 800 battery needs to support large scale electricity 600 storage for renewable electricity generation. There 400 was also continued development of frac sand 200 prospects to support the increasing consumption in 0 Alberta, and elsewhere, of frac sand needed for the 2014 2015 2016 2017 2018 Figure 3. A bar graph with the total number of active metallic and increasing use of hydraulic fracturing. industrial minerals licences from 2014 through 2018 (the report The total land area held as metallic and industrial period is October 1 through September 30). Metallic and industrial minerals licences are issued for the right to recover gold through minerals permits increased in 2018, which reverses recreational placer mining for a period of five years. a declining trend and was likely driven by new tenure acquired for lithium prospects (Figure 1). The total area held as metallic and industrial Assessment report expenditures minerals leases remained consistent from 2017 Accepted expenditures ($) to 2018 (Figure 2). The number of metallic 4500 Area (ha) 100 and industrial minerals licences (required for Per mi ts 90 recreational placer gold mining) decreased in 2018 4000 80 (Figure 3). Mineral assessment expenditures filed 3500 70 in 2018 were up from 2017 (some are still pending 3000 60 acceptance by the Alberta Energy), as were the 2500 50 number of assessment reports submitted (Figure 2000 40 Per mits 4). The first mineral assessment reports from the 1500 30 2016 staking rush for lithium tenure were submitted Area (x1000 ha) 1000 20 in 2018 and will be released in 2019 after their Expenditures (x$1000) 500 14 14 10 reviews are finalized and the confidentiality periods 15 8 15 0 0 end. 2014 2015 2016 2017(e) 2018(e)
2018 metallic and industrial mineral Accepted Payment exploration highlights Year Reports Permits Area (ha) expenditures ($) in lieu 2014 15 81 282,960 $3,905,340 $0 2015 8 25 116,519 $347,853 $0 Iron 2016 15 90 376,621 $987,590 $0 Ironstone Resources Ltd. changed its name 2017(e) 14 23 87,254 $641,085 $0 to PRISM Diversifiedin January 2018 as it expands its interests from developing its 2018(e) 14 70 324,761 $1,500,000 $0 Clear Hills iron project. PRISM continued to Figure 4. A graph of mineral assessment report statistics for develop their metallurgical process to upgrade the 2014 through 2018. The number of permits and area are those iron ore to a carbonyl powder product. They now reported in submitted reports. The accepted expenditures are those accepted by Alberta Energy; the total amount claimed is report that the process recovers cobalt as a by- not reported, but is higher than the accepted expenditure value. product along with vanadium. Numbers at the base of each bar are the number of reports received. (e) Accepted values for 2017 and 2018 are preliminary because not all report reviews were completed at the time of publication.
4 Coal and Mineral Development in Alberta Vanadium E3 is exploring three different project areas and With the growth of renewable energy resources in have defined NI 43-101 compliant resource Alberta and globally, there has been a related need estimates in each: 1.9 million tonnes (inferred) for energy storage technology, such as batteries, lithium carbonate equivalent (LCE) in the Central to hold the generated energy until it is required. Clearwater area, 0.9 million tonnes (inferred) LCE Vanadium redox flow batteries are emerging as in the North Rocky area, and 3.9 million tonnes potential candidate for this technology. While lithium (inferred) LCE in the Exshaw West area. ion batteries are currently the most familiar battery MGX Minerals Inc. continued work on a number technology, redox flow batteries have several of lithium projects in Alberta including their main advantages that make them more suited to grid Sturgeon Lake project in west-central Alberta. As storage applications. The potential for the vanadium with other lithium exploration companies, MGX redox flow battery has piqued interest in possible worked to develop a lithium extraction technology to sources of vanadium in Alberta to supply battery economically remove lithium from the host brine. manufacturers with vanadium electrolyte. Possible sources in Alberta include primary sources, such as MGX has also explored the potential to recover the Clear Hills iron-vanadium project in northwest lithium from oil sands wastewater. This work is Alberta, or secondary sources, such as bitumen, with their partner PurLucid Treatment Solutions, petroleum coke, and fly ash from the oil sands. which has developed filtration technology to clean wastewater from in situ oil sands operations, In 2018, Alberta Innovates launched an open particularly steam assisted gravity drainage call for expressions of interest to further the projects. The oil sands producer Connacher Oil development of non-combustion products and & Gas received regulatory approval to install a production technologies derived from bitumen PurLucid pilot plant at their Great Divide project. contained in Alberta’s extensive oil sands. Ongoing MGX will look to recover lithium from the treated efforts by Shell Canada in partnership with the wastewater. University of Alberta and University of Calgary are exploring opportunities of extracting vanadium from PRISM Diversified, through is subsidiary Lithalta Alberta’s bitumen resources. Ltd., continued to expand its land holdings targeting lithium exploration from oil field brines by Lithium adding an additional 64 permits overlying the well developed Devonian reefs that fringe the Peace With much of the prospective area for lithium brines River Arch. The Devonian reefs have the potential staked in previous years, the work in 2018 on to produce large volumes of lithium brine. PRISM lithium shifted focus from identifying the location of released a NI 43-101 Technical Report on its Clear resources to technology development for extracting Hills – Peace River Arch lithium brine project in April the lithium from the host brines. There is currently 2018. They announced plans to continue geological no economically viable technology to extract and engineering work to lead to the development of lithium from water at the concentrations found a resource report. within Alberta. This requires the development of new technology or the novel adaptation of existing Power Metals Corporation continues to hold three technology to extract commercial volumes of lithium properties (South Leduc, Drumheller, and Peace from brines. River) as part of their Alberta lithium brine project. However, the company did not report any new work E3 Metals Corp explored resources and or results on the project in 2018. technology to develop their “petro-lithium” play in central Alberta. On September 26, E3 Empire Metals Corp. reported results in March announced the development of a pilot plant to 2018 of a brine sampling program on their Fox test their extraction methodology. In December, Creek lithium brine property. Sampling targeted the they reported that the pilot plant concentrated Beaverhill Lake formation. Results were consistent the lithium content in the brine up to 1498 mg/L with historical sampling of the aquifer, and indicate from an original concentration of 73 mg/L. E3 has a homogeneous brine composition across the focused on an ion-exchange process and has sampled area. As with other lithium exploration partnered with a lab at the University of Alberta programs, Empire relied on agreements with to develop its technology. Alberta Innovates and oil and gas producers to access brine samples Natural Resources Canada’s Industrial Research from existing oil and gas wells. Empire is also Assistance Program have supported this research.
2018 Year in Review 5 N W T Metallic Industrial Minerals Agreement Activity WOOD BUFFALO
Lithium (mg/L) A
30 - 50 I 50 - 75
B 75 - 100
M 100
Agreements U
Permit L Lease O 2 Permit Application
C
Fort McMurray S
National Park 1
A
Municipality H
S
Hydrography S
K
I
A
T
² ³
³ 2 ² 63 I T
R Grande C 1 C l e a r i l l s Prairie B H Cold Lake
2 F i r e b a g E
³ 28 ²
W
A
³ ² ELK ISLAND
16
N ³
EDMONTON 16 ² Lloydminster
JASPER
Red
Deer
³ 2 ²
BANFF
CALGARY
³ R R 1 ² inera ree en er a ner an ar 11 201 i i er a e i a rve wn a e an ar 11 201 Medicine