Lancaster Resources Inc (CSE:LCR, OTCQB:LANRF) announced it has received approval from both the United States Department of the Interior Bureau of Land Management (BLM) and the New Mexico Mining and Minerals Division (MMD) for their Plan of Operations regarding the Alkali Flat Lithium Brine Phase 1 drill program.
The approval allows Lancaster to proceed with drilling activities as outlined in their plan.
Lancaster is now permitted to potentially drill up to three wells on the playa, subject to the results of the initial well drilling in the second quarter of 2024.
Additionally, the approval outlines conditions for access, safety, and environmental protection, indicating a collaborative effort between the BLM and Lancaster to ensure responsible and environmentally conscious drilling operations.
According to Andrew Watson, Lancaster's vice president of engineering and operations, the BLM's approval of the Plan of Operations application is a testament to Lancaster's commitment to providing sustainable and minimally impactful critical minerals for the energy transition.
"We are rapidly progressing to drilling our maiden exploration well at Alkali Flat and showing the significant potential lithium brine deposit in the subsurface aquifers identified by our 2023 geophysics program,” Watson told shareholders.
As part of the approval process, Lancaster must submit a financial assurance instrument, such as a letter of credit, amounting to US$63,783. This assurance will be jointly held by the BLM and MMD, facilitating access and drilling on the playa upon approval from the New Mexico Office of the State Engineer.
The Alkali Flat lithium project focuses on a closed-basin brine deposit in a playa lake setting, strategically located adjacent to a major rail line and interstate highway, ensuring excellent access. The drill permit area is situated approximately eight miles north of the renowned 15MW Lightning Dock Known Geothermal Resource Area (KGRA).
Closed basin brine deposits are estimated to contain 58% of the world's lithium resources, with the only active lithium production location in the United States currently being the brine operation at Clayton Valley, Nevada.