Nevada Lithium Resources Inc. [CSE-NVLT; OTCQB-NVLHF; FSE-87K] has started a sonic drilling program across portions of its 100%-owned Bonnie Claire lithium project, Nye, County, Nevada. The drilling is part of the current work program that commenced in the summer of 2023, advancing the Project towards an expected Pre-Feasibility Study in 2024.
Stephen Rentschler, CEO, commented: “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 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.”
Highlights: 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 characterization 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 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.
The company also announced that 6,600,000 incentive stock options were granted to certain directors, officers, employees, and consultants. Each Option grants the holder the right to purchase one common share of the company at $0.20 per Common Share for 5 years from the date of issue unless terminated pursuant to the terms of the Option Plan.
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.
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 Li.
The PEA for Bonnie Claire indicates a Net Present Value (8%) of US$1.5 Billion (after tax) using US$13,400/tonne LCE and after-tax IRR of 23.8%. With an LCE price of US$30,000/tonne, the Net Present Value (8%) of the Project is US$5.9 Billion (after tax) and an IRR of 60.3%.
