Nevada Lithium project cuts strong grades near surface and at depth

Nevada Lithium Resources (TSXV: NVLH; OTCQB: NVLHF) and Iconic Minerals (TSX-V: ICM; OTCQB: BVTEF) say drill results from their Bonnie Claire Lithium joint venture in Nevada show near-surface strong grades.  

Drill hole BC2202C cut 600.46 metres from surface grading 1,157 parts per million (ppm) lithium, including 121.92 metres from 6.1 metres depth grading 753 ppm lithium, and 298.7 metres from 298.7 metres down hole grading 1,882 ppm lithium, the companies said in a news release on Tuesday.  

Drill hole BC2204C returned 574.2 metres from surface grading 663 ppm lithium, including 128.6 metres from 5.5 metres down hole grading 977 ppm lithium, and 189 metres from 250 metres depth grading 1,043 ppm lithium.  

“This drilling continues to demonstrate that high grades of lithium are present, both near surface and at depth,” Nevada Lithium chief executive officer Stephen Rentschler said in the release. “We firmly believe that Bonnie Claire is one of the most attractive global lithium assets remaining in junior developers’ hands.” 

The Bonnie Claire project, located across 74 sq. km in Nye County, northwest of Las Vegas, contains 3.4 billion tonnes grading 1,013 ppm lithium for 18.4 billion tonnes lithium carbonate equivalent, according to a preliminary economic assessment last year.  

Lithium is one of the most sought-after commodities as automakers ramp up production of electric vehicles using the light metal in batteries. Demand is expected to remain high for decades even as governments declare it a critical mineral and boost funding to increase supplies.  

The project, split evenly between Nevada Lithium and Iconic, is estimated to have a 40-year mine life with an after-tax net present value of US$1.5 billion at an 8% discount rate, and an after-tax internal rate of return of 23.8%, according to the assessment. 

Shares in Nevada Lithium gained 1.5¢ to 12.5¢ on Tuesday in Toronto, within a 52-week range of 10¢ to 45¢, valuing the company at $7.73 million.  

Shares in Iconic Minerals lost half a cent to 8.5¢, its lowest price in two and a half years, valuing the company at $11.3 million. It’s traded as high as 21¢ this year.