Usha Resources Ltd (TSX-V:USHA) has provided an update on the on-going drill program at its Jackpot Lake Lithium Brine Property in Nevada, with the latest drill hole returning the highest grades of lithium encountered in drilling and reported historically to date on the property.
Drillhole JP22-02 encountered shallow soils within the upper 500 feet averaging 334 parts per million (ppm) lithium (Li), almost twice the historical reported average of 175 ppm, and a high of 820 ppm, almost four times the historical average and 50% higher than the historical reported high of 550 ppm, Usha noted.
The company said the core assay results from JP22-02 demonstrate the potential for Jackpot Lake to host higher-grade intervals at deeper depths within the basin and confirms that lithium-rich sediments are present in the upper portion of the basin which could theoretically concentrate and enrich a brine at depths over time.
“These drill results continue to demonstrate and validate the immense potential we saw when we first reviewed Jackpot Lake,” said Deepak Varshney, CEO of Usha Resources in a statement. “We have always looked to Clayton Valley as a reference for our own geological model and the leaching of enriched lithium clays within a basin is one of the primary mechanisms by which lithium is believed to have been introduced into the brine at Albemarle’s Silver Peak operation."
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Varshney added: “Our reported historical average of 175 ppm Li in the surficial soils illustrated the potential of our project as it was very comparable to the reported average of 100 ppm for the Esmeralda Formation, one of the potential sources of the lithium enrichment in Clayton Valley. These higher grades further confirm our belief that there is a strong potential source for brine enrichment across the entire Jackpot Lake basin as well.”
The company announced that it has also encountered very favourable stratigraphy in a second hole, with evaporitic crystallization, indicative of a brine-forming environment, present throughout the core similar to the first hole as interbedding, veining and inclusions but also as a thick layer of massive evaporites from 1,346 to 1,504 feet.
Furthermore, the second hole has a thicker zone of the higher-porosity clayey sand, sand and conglomerate, with at least 273 feet of this zone present in an interval that begins at 1,528 feet that extends to the bottom of the hole at 1,801 feet. The conglomerate encountered at 1,696 feet and below grades from smaller to larger clast sized at depth and is supported with a sandy matrix, creating a thick basal conglomerate sequence, it noted.
Usha said the identification of a larger sand-conglomerate zone within the second hole is a key finding as it demonstrates that this zone, which should contain the greatest porosity within the basin aquifer, is present in both drilled locations at sufficiently large intervals to serve as a potentially viable pumping zone for a large operation and is further evidence the basal conglomerate will persist across the entire basin floor.
It noted that in the Preliminary Economic Assessment (PEA) completed by Pure Energy Minerals for its Clayton Valley project, the sand and conglomerate zone was identified to contain a large volume of brine with superior grades, and so Usha is making the identification of this zone throughout the basin a priority for its drill program.
Varshney said: “The core from the second hole was a significant part of our decision to exercise our 100% option at Jackpot Lake prior to receiving assays."
“The drilling to date has provided strong support that the Jackpot Lake system is in a similar geologic setting to that of Clayton Valley. Almost 150 feet of evaporites overlying several hundred feet of higher-porosity sand and conglomerate shows that this area not only has the right conditions for the formation of enriched brines, but that we also have a significant zone into which these fluids could drain and be pumped from. We are very much looking forward to completing this hole and proceeding with sampling as we work towards what we believe will be the next American lithium discovery,” he added.
Drilling and Sampling Update
Usha also announced that, after reviewing the findings of the drill program to-date and discussion with the drill contractors, it has elected to use a larger, more powerful rig to install a deeper exploration well, instead of completing a shallower well installation at the current depth of 1,801 feet. Usage of this new rig will allow for drilling to continue to a depth of 2,000 feet, thereby expanding on the 273-foot interval of sand and conglomerate already identified in JP22-02 where the company believes the best potential brines may be present.
As a gesture of goodwill, the drill contractors, Harris Exploration Ltd, has furthermore confirmed that it will also advance JP22-01 to a depth of 2,000 feet using the larger rig at no cost to the company, thereby potentially greatly expanding on the 99-foot higher-porosity sand and conglomerate zone already identified in JP22-01.
Finally, the company advised that it has not yet received further assay results from the first hole and that samples submitted to the analytical laboratory are still undergoing analysis
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.
Based in Vancouver, British Columbia, Usha’s portfolio of strategic properties provides target-rich diversification and consists of Jackpot Lake, a lithium project in Nevada; White Willow, a lithium project in Ontario; Nicobat, a nickel‑copper‑cobalt project in Ontario; and Lost Basin, a gold-copper project in Arizona.
Contact the author at jon.hopkins@proactiveinvestors.com