Nevada Lithium Seismic Survey Defines Location of Major Fault Zone – Identifies Brine Target for Drill Test

January 9, 2024

Vancouver, British Columbia – January 9, 2023 – Nevada Lithium Resources Inc. (CSE: NVLH; OTCQB: NVLHF; FSE: 87K) (“Nevada Lithium” or the “Company”) is pleased to announce, that further to its press release dated October 17, 2023, it has completed interpretation of a seismic survey conducted at its 100% owned Bonnie Claire lithium project (the “Project” or “Bonnie Claire”). A major north-south-trending fault zone has been identified as a target for lithium brine exploration. This development is part of the current work program that commenced in the summer of 2023 (“2023 Exploration and Development Plan”). The workplan is advancing the Company’s lithium resource towards pre-feasibility and is examining the potential for additional opportunities in lithium brines. 

Stephen Rentschler, CEO of Nevada Lithium Resources, comments: “We are pleased to report that the seismic survey first announced on October 17th, 2023, has yielded important results. The survey has identified a major north-south trending fault zone, similar to that found at Clayton Valley, the location of the only producing US lithium brine mine, 47 miles (75km) north of Bonnie Claire.1 Nevada Lithium has targeted an initial drill location for brine evaluation and preliminary work is underway to determine the timing of this drill test”. 

He continued, “Nevada Lithium is confident that Clayton Valley provides a viable exploration model for lithium bearing brines at Bonnie Claire. The results of this seismic survey mark another important step in confirming the Company’s exploration model. Notably, the seismic survey covered less than 8% of the overall Project. There remain significant seismically untested areas to both the south and north within the Property, along-strike from the interpreted fault zone. The opportunities for brine evaluation are an important component of the Company’s overall value proposition, anchored by ongoing Preliminary Feasibility Study work on the sediment-hosted lithium deposit at Bonnie Claire.”

¹¹ Pure Energy Clayton Valley PEA, 2017

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The seismic survey was conducted by Hasbrouck Geophysics, Inc. of Prescott, Arizona. Hasbrouck has conducted several surveys in Nevada including at Clayton Valley where a seismic survey helped identify an extension of a lithium brine bearing fault zone. The Bonnie Claire survey identified a similar, major north-south trending fault zone on the eastern portion of Nevada Lithium’s claim block. The fault zone is over 500 meters (1,600 feet) wide and down-drops the stratigraphy sharply to the east. A plan view of the seismic interpretation is shown below in Figure 1.

Figure 1: Bonnie Claire Interpreted Seismic Basin Depth and Faults

Source: Nevada Lithium Resources

Superimposing the resistivity low found by the Company’s 2016 MagnetoTelluric (MT) survey on the seismic section (see Figure 2 below) revealed a significant broadening of the low within the fault zone. The Company believes that the bulk of the resistivity low is associated with salty water occurring within the lithium-bearing claystones to the west. Any permeable beds in or adjacent to the fault zones are lithium brine targets. However, because lithium brines are heavier than fresher, more recent waters, the best targets are deeper.

Figure 2: Bonnie Claire west-east interpreted seismic cross-section, looking north

Source: Nevada Lithium Resources

At Clayton Valley, 75 km (47 miles) north of Bonnie Claire (see Figure 3 below), lithium brines occur in permeable beds adjacent to a major north-south fault. The north-south fault brings neutral pH water into the valley and the water leaches lithium from lithium-rich sediments and produces lithium brine (Source: Pure Energy Clayton Valley PEA, 2017). The Company believes that the same process may occur at Bonnie Claire where a major north-south fault zone intersects lithium-rich claystone. If the fault brings neutral pH waters into contact with high pH lithium-rich sediments, leaching could create lithium brine. Clayton valley, currently operated by Albemarle, is the only producing lithium brine deposit in North America and has been operating since 1966 (57 years). 

Figure 3: Location map of Bonnie Claire and Clayton Valley projects

Source: Nevada Lithium Resources

The Company anticipates a 1,350 to 1,500 meter (4,400-5,000 ft) vertical hole would be necessary to test this brine target and is developing a plan to drill it in 2024. This drilling would run concurrently with the continued development of the sedimentary lithium resource which is currently advancing towards a prefeasibility study.

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 PEA for Bonnie Claire indicates a Net Present Value (8%) of $1.5 Billion USD (after tax) using $13,400 USD per tonne LCE and after-tax 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/

QP Disclosure

The technical information in the above disclosure has been verified and approved by the designated Qualified Person under 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.  The geophysical dataset has been reviewed, but not verified, as Dr Wilson is not a specialized geophysicist.

¹ See 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.

On behalf of the Board of Directors of Nevada Lithium Resources Inc.

“Stephen Rentschler”
Stephen Rentschler, CEO

For further information, please contact:
Nevada Lithium Resources Inc.
Stephen Rentschler
CEO and Director
Phone: (647) 254-9795
E-mail: sr@nvlithium.com

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