Caeneus Minerals Ltd (ASX:CAD) is commencing a detailed ground gravity program at the Lida Valley Lithium Brine Project in Nevada, U.S., in May as part of the company’s due diligence process.
The Lida Valley Lithium Brine Project covers 2,620 acres and is situated within 40 kilometres of the Silver Peak Lithium Mine of Albermarle Corporation LLC (NYSE:ALB), the only producing lithium mine in the United States.
If the ground gravity program defines any significant structures crossing the basin, the company will commence a drilling program in an effort to intersect lithium-bearing brines.
The Lida Valley Project covers a sedimentary basin with a potential for lithium-bearing brines.
Along with the Lida Valley Project, exploration work will commence at the Muddy Mountains Project. This work will involve mapping and sampling of the lithium-bearing sediment prior to drill evaluation.
The Muddy Mountain Lithium Project, which encompasses approximately 2,542 acres, is situated 50 kilometres northeast of Las Vegas and is potentially a district-scale lithium clay concept.
In late March, Caeneus entered into an agreement with Nevada Metals to acquire a 100% interest in the Muddy Mountain and Lida Valley Lithium Projects in West Nevada.
Both the projects are situated near the US$5 Billion Tesla Motors ‘gigafactory’ in Sparks, Nevada which is currently under construction.
Tesla Motors is planning to start large scale production of lithium-ion battery cells in 2017 and has indicated that they intend to source their raw material requirements exclusively from North America.
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