The Red Valley Project shares a striking geologic similarity to Clayton Valley in Nevada, having endured the same geologic processes to generate lithium brines.
The Clayton Valley remains the sole source of lithium production in the U.S.
Under the earn-In agreement, Red Mountain will fund initial drilling and chemical analysis of the Red Valley Project.
The total cost of initial drilling, analysis and tenement applications is estimated to be between US$200,000 and US$325,000.
If commercial grade lithium is reported in brines, Red Mountain has the right to acquire 51% of the project for US$250,000.
Red Mountain’s earn-in partner, Bill Feyerabend, is an acknowledged expert on the Clayton Valley basin and is the author of expert geological reports for other Clayton Valley explorers.
The Red Valley Project area was identified by Feyerabend by focusing consecutively on areas of crustal extension in western North America and then on areas of rhyolitic volcanics.
To date, the target area has not been drill tested and is in a world class mining jurisdiction.
Red Mountain continues to progress its Batangas gold project in the Philippines, where a pre-feasibility study in June 2016 projected $46 million in free cash flow during the first 7 years of production.