Nevada Lithium Resources Inc (CSE:NVLH, OTCQB:NVLHF) released new drill results that significantly extended high-grade lithium mineralization at its Bonnie Claire project in Nevada.
The core assay results from one drill hole indicate a significant extension of high-grade lithium mineralization, particularly in the lower mineralized zone, the company said in a statement.
The drill hole, reaching a depth of 2950 feet, is the deepest to date at Bonnie Claire and situated within the prefeasibility study resource upgrade area.
Shares of the company jumped nearly 17% on Monday afternoon in Toronto.
The results highlight the potential for increased value at Bonnie Claire, Nevada Lithium's CEO Stephen Rentschler told shareholders.
“The extension of this core hole to basement, revealing significant lengths of additional continuous high grade mineralization, is an excellent example of the company’s progress in quickly showing the potential for increased value at Bonnie Claire,” Rentschler said. “Optionality is one of the greatest assets of Bonnie Claire.”
The company sees the project's extensive land package and geological features as valuable assets, with the aim of adding to the estimated value of US$1.5 billion, using LCE prices of $13,400 tonne.
The results themselves revealed high-grade lithium concentrations, including 3076 ppm over 1100 feet in the lower zone. This suggests the possibility of additional high-grade mineralization beyond the current resource. The upper mineralized zone also showed positive results, including 969 ppm over 370 feet.
Rentschler called the wide intercepts of high grade mineralization “tremendously encouraging” and added that they are “only one part of our ambitious examination” of the property.
The firm’s current sonic drilling field program is assessing suitability of strata for open-pit mining methods, the CEO noted. Nevada Lithium is also expanding its understanding of the potential for lithium brines at Bonnie Claire with a seismic program, he added.
Nevada Lithium plans to share additional results from its ongoing diamond drilling program in the coming months.