Nevada Lithium Resources Inc (CSE:NVLH, OTCQB:NVLHF) CEO Stephen Rentschler talked with Proactive about the latest developments at the Bonnie Claire project.
Rentschler discussed the commencement of a new drilling program aimed at advancing their high-grade lithium and boron mineralization findings and explained the significance of these findings.
Additionally, Rentschler addressed the impact of political and economic factors on the electric vehicle and lithium industries, emphasizing the resilience and growth potential of lithium demand, particularly with the rise of battery storage solutions.
Proactive: There's a lot to discuss today, especially with your activities at Bonnie Clare and the broader electric vehicle market. Could you start by telling us about the recent developments at Bonnie Clare, particularly the commencement of drilling?
Stephen Rentschler: It is very exciting. Yesterday, we issued a press release announcing the commencement of our work program at Bonnie Clare. This program will include at least two deep drill holes. We're located about 2.5 hours northwest of Las Vegas, Nevada. The purpose of this drilling is to advance our efforts towards updating our Preliminary Resource (PR). Earlier this year, we identified a large, high-grade swath of mineralization at the bottom of our holes containing both lithium and boron.
We've reviewed everything we've done so far and decided on the best way to incorporate this positive news into our forward progress. These drill holes are the first steps in the fieldwork we’ll be using to demonstrate the high value of the lithium and boron assays we obtained earlier.
You're working towards a new report, and it will be much different from the previous one, correct?
I think it really has the opportunity to be much different and in many ways, much higher quality. The centerpiece of that will be the resource itself. We are in a very dynamic environment, particularly within the lithium industry and with our own project. For our investors and new followers, the story of Bonnie Clare is based on a Preliminary Economic Assessment (PEA) conducted almost three years ago. The drilling for that assessment was completed around mid-2021.
Since then, we have continued drilling to increase a resource that is already one of the largest globally. What we’ve consistently found is that the mineralization continues to get thicker and the assay grades increase at depth. In 2020 and 2021, our drilling reached depths of around 2,000 feet. In 2023, we went deeper and discovered that the high-grade mineralization, containing both lithium and boron, extends further down.
As we move forward, we are committed to drilling through this mineralization fully. Previously, we believed a 2,000-foot hole was sufficient, then we extended to 2,500 feet. The most recent hole, drilled this year, reached 2,800 feet. We stopped when we believed we had passed through the mudstones, which typically contain our lithium. This suggests we have over 1,400 feet of mudstone, which is 200 feet more than before. Although we are awaiting assays, the signs are very promising. This was a step-out hole, meaning it was drilled 450 meters (or about 1,500 feet) away from our other holes to explore further.
The second hole we’re currently working on is an infill hole, positioned between previously drilled holes. This increases our statistical confidence in the assays we’ve obtained. All of this will be incorporated into an updated report, highlighting the new high-grade lithium and boron mineralization we discovered, which we didn’t know existed a few years ago. It’s very exciting for us.
Will the report be released sometime in fall 2024, as mentioned in the recent news?
That is what we hope. This process is very dynamic, and we are trying to align everything properly. There are many facets to these technical reports, including drilling, which has gone well with the first hole. However, we are now entering monsoon season in Nevada. If there is lightning, the drill team has to stop, which could slow us down.
Additionally, gathering all the assay data from these very deep holes takes time. While other projects in Nevada may only drill down 300 feet, we are drilling down to 2,800 feet, so it will take 6 to 8 weeks to start getting our assay results. After that, we need time to interpret the data and update the technical report to include all the assays, resource estimation, and additional metallurgy.
The high-grade mineralization we’re finding is different and looks similar to that at Rhyolite Ridge, which is about 100 miles northwest of us. We need to reflect all this in the updated PEA. We are working very hard to put all these pieces together seamlessly to avoid delays, but we keep finding good stuff, which requires us to continue the work to avoid sterilizing part of the project.
Steven, I wanted to ask about some recent comments regarding the ongoing election in the United States. Vice President Kamala Harris has emphasized the importance of electrification, electric vehicles, and environmental issues. Meanwhile, the Republicans have been somewhat lukewarm on this topic. How does this political climate impact your work, and what are your thoughts on this as someone in the industry?
I get asked about this a lot because, as a US CEO of a natural resource company, my perspective is somewhat unique. In my opinion, the discussions we're hearing, such as Donald Trump's stance on potentially halting EVs, oversimplify U.S. politics.
The effort required to pass the Inflation Reduction Act on a bipartisan basis was immense. Things often get done quickly through executive orders to bypass Congress, but these orders frequently face legal challenges that take time to resolve.
What I believe is that EVs are definitely here to stay, though the rate of their market penetration may vary. For example, China continues to see around a 30% annual increase in EV adoption, while the U.S. saw a 10% increase in the first half of 2024 compared to the previous year. There will be fluctuations, especially as U.S. car manufacturers adapt to trends set by companies like Tesla and BYD.
The current U.S. economic climate, including rising interest rates, political uncertainties, and recent events, adds to the unpredictability. Despite this, battery storage demand has risen nearly 25% year over year, which will positively impact the lithium market. Although lithium spot prices are currently depressed and there's significant volatility in the market—just look at the recent fluctuations in copper prices—I'm confident that the future is not as bleak as it might seem right now.
The growth in battery storage, especially for stationary applications, is promising. We should see more clarity as we move past the U.S. elections and into the new year. This is all just my opinion, of course.
Quotes have been edited for style and clarity