Usha Resources Ltd (TSX-V:USHA) has told investors that one of its primary goals for 2023 is to complete a maiden resources estimate for its Jackpot Lake Lithium Brine project in Nevada.
In a shareholder update, the mineral acquisition and exploration company’s CEO Deepak Varshney said this would be a significant catalyst that would see it joining “a select few companies that are on the path to providing domestic supply of a critical element in the United States.”
“We are very excited to unlock the value of our portfolio and become a significant leader in the lithium space as the world continues its transition to a low-carbon future and we look forward to continuing to build our company through acquisition, exploration and high-impact execution in the coming year to drive future growth,” Varshney added.
The company noted that it has a strong balance sheet, with working capital of just over $3.1 million, leaving it fully funded to execute its projects. That follows the successful closing of two financings, which saw it raise close to $5.9 million.
Following the acquisition of Jackpot Lake in early 2022, Usha also highlighted the recent acquisition of the White Willow and Nym Lake lithium pegmatite projects in Ontario in a continuation of its strategy to build an accretive portfolio complementary to Jackpot Lake.
Varshney noted that these acquisitions have helped propel Usha’s market capitalization up by 220% to almost $15 million since the start of 2022, with significant exploration work still to come.
Catalysts for growth
At Jackpot Lake, Usha said it is drilling the second hole of its maiden drill program as it moves towards defining a 43-101 estimate.
Recent results revealed the higher lithium grades yet at the project, with hole JP22-02 returning as high as 820 parts per million (ppm) and averaging 334 ppm lithium in 30 samples collected from shallow surface soils.
It plans to advance both drill holes to 2,000 feet in the coming weeks, after which it will complete sampling, before proceeding with either further drilling or completion of the maiden resource estimate.
Meanwhile, with the coming snowmelt, the company plans to proceed with an exploration program at the White Willow and Nam Lake projects with drilling targeted for the third quarter of 2023. It said the exploration work will involve a combination of prospecting, mapping and rock sampling, combined with soil sampling and geophysical surveying.
Usha also announced that it has agreed to hire Aktiencheck.de AG for 50,000 euros for a European marketing and news dissemination program, adding that the duration of the program will depend on the volume of its future news flow.
Contact the author at stephen.gunnion@proactiveinvestors.com