Cadence Minerals Plc (LON:KDNC) told investors that its 15.2%-owned associate Macarthur Minerals Limited (CVE:MMS) has identified several zones which it said are indicative that a lithium brine aquifer is present at the Reynolds Springs project in Nevada.
Reynolds Springs is located in Railroad Valley which, according to Macarthur, has geological attributes that closely match the Clayton Valley where North America's only producing lithium mine is found.
READ: Cadence Minerals lifted by investee company Auroch Minerals' zinc projects purchase
"Macarthur Minerals believes this is the start of something very significant in the US lithium sector,” said Kiran Morzaria, Cadence chief executive.
“We now look forward to the development of a basin-wide geological model, ahead of permitting and drill testing."
In its own statement, Macarthur chief executive Cameron McCall said: “Macarthur Minerals believes this is the start of something very significant in the US lithium sector and is excited about the results of the down-hole logging study that shows several zones interpreted as potential brine aquifers at its Reynolds Springs Project in Nevada.
“These results reinforce the potential for the project to host lithium brines as suggested by a large geochemical shallow soils lithium anomaly in lake sediments that was previously reported by Macarthur Minerals.
McCall added: “Macarthur Minerals is moving forward to complete down-hole logging studies of additional nearby wells, with a view to re-entering one or more abandoned wells to sample the brine target zones.”