Usha Resources Ltd (TSX-V:USHA) has said that drilling is underway successfully at its Jackpot Lake Lithium Brine property some 35 kilometres northeast of Las Vegas, Nevada.
The drill is now at the 250 metre level and the exploration team has encountered multiple zones of evaporite crystals as interbeds, veining, and inclusions and sandy and gravel zones at depth, the Vancouver-based company said.
“The significance of evidence supporting the geologic setting coupled with the geological similarities and notable proximity to the sole domestic producer of lithium in the United States bodes well for USHA’s future potential – both near and long-term,” Deepak Varshney, CEO of Usha Resources said in a statement.
READ: Usha Resources announces drill rig has arrived on site at Jackpot Lake Lithium Project
“While the exploration team will remain dialled into completing the current drill campaign and collecting fluid and geological samples for lab testing, I’m also considering our development path options, including potential expansion plans as well as DLE technology partner considerations.
“The fact that the Biden Administration’s critical mineral requirements will quickly come into effect approximately one year from now is not lost on me – 50% of battery components will be manufactured or assembled in North America starting in 2024 and increasing to 100% by the end of 2028. With the demand for lithium resources accelerating and no capital constraints holding us back, we will drill smartly, test expeditiously, and play to win,” added Varshney.
Based on the evidence gathered during drilling and evaluation of the Jackpot Lake system, the company believes that the accumulation of eroded materials from the surrounding mountain ranges and repeated evaporation events have continued over a geologic time scale in this closed basin system, which is a primary mechanism of brine concentration.
Considering the elevated lithium concentrations identified in historic soil samples, such events could theoretically concentrate lithium as rainwater passes through these materials, developing enriched brines at depths, it added.
The information obtained through the exploration program to date indicates that the basin setting and accumulation of minerals is similar to the geologic setting for Albemarle’s Silver Peak Nevada Lithium Mine, the only producing lithium mine in North America, where sediments from lithium-rich surrounding source rocks have accumulated and filled the deposit leading to a concentration of lithium brine due to successive evaporation and concentration events.
Usha Resources is a North American mineral acquisition and exploration company focused on the development of quality battery and precious metal properties that are drill-ready with high-upside and expansion potential.
Contact the author at jon.hopkins@proactiveinvestors.com