Vancouver, British Columbia – November 6, 2023 – Nevada Lithium Resources Inc. (CSE: NVLH; OTCQB: NVLHF; FSE: 87K) (“Nevada Lithium” or the “Company”) is pleased to announce the commencement of a sonic drilling program across portions of its 100% owned Bonnie Claire lithium project (the “Project” or “Bonnie Claire”). The drilling is part of the current work program that commenced in the summer of 2023 (“2023 Exploration and Development Plan”), advancing the Project towards an expected Pre-Feasibility Study in 2024.
Nevada Lithium’s CEO, Stephen Rentschler, comments: “Optionality is one of the greatest assets of Bonnie Claire. Our land package and geology provide us with the opportunity to evaluate multiple paths to unlock shareholder value. The initial phase of our sonic drilling field program will assess suitability of strata for open-pit mining methods, and will deepen our understanding of basin water flow, which relates to a number of different aspects of the Project. In addition, the current seismic program (announced in the Company’s news release dated October 17, 2023) is helping our understanding of the potential for lithium brines at Bonnie Claire. We anticipate assay results for our first deep core hole in the near future, and we look forward to sharing our conclusions about all these initiatives with the market over the following months.”
Join Stephen Rentschler, CEO of Nevada Lithium for a LIVE virtual event to learn more about the details of the Company’s sonic drilling program, and ask questions during the interactive Q&A.
Date and time: Wednesday, November 8th at 11 am ET / 8 am PT
- Two initial vertical holes up to 700 feet in depth.
- Drilling conducted by Harris Exploration Drilling and Associates Inc. using a Boart Longyear LX60 track-mounted sonic drill.
- Hydrogeological services conducted by Barr Engineering Co.
- Borehole geophysical data collected and processed by COLOG Geophysical Services.
The overall work program is designed to investigate geotechnical rock properties and basin fluid flow within strata at Bonnie Claire. The primary focus of the work is aquifer testing and geotechnical characterisation from drill logging and borehole geophysical procedures to identify suitable intervals for straddle-packer pumping testing. Pumping tests will in turn measure hydraulic connections within strata and measure production rates of groundwater for chosen intervals. This geotechnical engineering work will build on a 2022 study and is expected to advance understanding relating to open pit stability evaluation, underground stability for borehole mining, and surface infrastructure foundation on the Property.
A geotechnical investigation completed in 2022 (“the 2022 Program”) evaluated borehole mining at depths of up to 2,000 feet and found that materials less than 500 feet deep were less consolidated than those at greater depth. The supplemental investigation currently being undertaken is intended to evaluate the suitability of upper materials for a potential open pit mine, support of a mill & other operational equipment, and tailings storage.
The assessment of site hydrogeology in the 2023 Exploration and Development Plan will also build on the 2022 Program. Data from 2022 Program with respect to drilling, geophysical logging, and packer-testing provided estimates of hydraulic connectivity at one location. The additional sonic drilling work being completed as part of the 2023 Exploration and Development Plan will provide a broader understanding of groundwater flow and hydraulic conductivity across the Property. Initial holes will address aquifer testing down to 700 feet in depth to support potential open pit design. Later holes will investigate deeper water related to the borehole mining method.
Issuance of Options
The Company also announces that 6,600,000 incentive stock options (the “Options”) were granted to certain directors, officers, employees, and consultants of the Company in accordance with the Company’s stock option plan (the “Option Plan“). Each Option grants the holder the right to purchase one common share of the Company (each a “Common Share”) at a purchase price of $0.20 per Common Share for a period of 5 years from the date of issue unless terminated pursuant to the terms of the Option Plan. Accordingly, the Options expire November 6, 2028. The Options and any Common Shares issued upon exercise thereof will be subject to a hold period of four months and one day from the date of grant.
The Options shall vest according to the following vesting schedule: 33% shall vest immediately upon issue; 33% shall vest upon the date that is 1 year from the date of issue and the remaining 34% shall vest upon the date that is 2 years from the date of issue.
About Nevada Lithium Resources Inc.
Nevada Lithium Resources Inc. is a mineral exploration and development company focused on shareholder value creation through its core asset, the Bonnie Claire Lithium Project, located in Nye County, Nevada, where it holds a 100% interest.
Bonnie Claire has a current NI 43-101 inferred mineral resource of 3,407 million tonnes (Mt) grading 1,013 ppm Li for 18.372 million tonnes (Mt) of contained lithium carbonate equivalent (“LCE”), at a cut-off grade of 700 ppm Li¹.
The PEA¹ for Bonnie Claire indicates a net present value (8%) of $1.5 Billion USD (after tax) (“Net Present Value”) using $13,400 USD per tonne LCE and after-tax internal rate of return (“IRR”) of 23.8%. With an LCE price of $30,000 USD per tonne, the Net Present Value (8%) of the Project is $5.9 Billion USD (after tax) and an IRR of 60.3%.¹
For further information on Nevada Lithium and to subscribe for updates about Nevada Lithium, please visit its website at: https://nevadalithium.com/
The technical information in the above disclosure has been reviewed and approved by the designated Qualified Person, as defined under and pursuant to the terms of National Instrument 43-101, Dr. Jeff Wilson, PhD, P.Geo, Vice President of Exploration for Nevada Lithium. Dr. Wilson is not independent of Nevada Lithium, as he is Vice President of Exploration for Nevada Lithium.
¹See Preliminary Economic Assessment NI 43-101 Technical Report on the Bonnie Claire Lithium Project, Nye Country, Nevada authored by Terre Lane, J. Todd Harvey, MBA, PhD, Hamid Samari, PhD and Rick Moritz (Effective date of August 20, 2021, and Issue date of February 25, 2022) (the “PEA” or the “Preliminary Economic Assessment”) as summarized in Nevada Lithium’s news release dated October 13, 2021, which are available on Nevada Lithium’s SEDAR+ profile at www.sedarplus.ca. Results of the Preliminary Economic Assessment represent forward-looking information. This economic assessment is, by definition, preliminary in nature and includes inferred mineral resources that are considered too speculative to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the Preliminary Economic Assessment will be realized. Mineral resources are not mineral reserves as they do not have demonstrated economic viability. There is no certainty that all or any part of the Mineral Resources will be converted into Mineral Reserves (as such terms are defined in the Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards on Mineral Resources and Mineral Reserves adopted by Canadian Institute of Mining, Metallurgy and Petroleum Council, as amended).
On behalf of the Board of Directors of Nevada Lithium Resources Inc.
Stephen Rentschler, CEO
For further information, please contact:
Nevada Lithium Resources Inc.
CEO and Director
Phone: (647) 254-9795