Nevada Sunrise Metals (TSXV: NEV; US-OTC: NVSGF) has posted an initial resource estimate for its Gemini clay lithium project that “exceeded expectations” given the limited drilling the company has done to date.
The resource outlined 1.3 million tonnes of lithium (or 7.1 million tonnes of lithium carbonate equivalent) in 1.2 billion inferred tonnes of mineralized clay at an average lithium grade of 1,130 parts per million (ppm). A cut-off grade of 400 ppm lithium was used.
The $7.7-million market cap junior says the resource is the fourth largest in the U.S. and one of the world’s largest. Shares of Nevada Sunrise were trading 40% or 2¢ higher at 7¢ this afternoon in Toronto.
Nevada Sunrise CEO Warren Stanyer noted in a press release that only five holes have been drilled to date in just 15% of the project area. The deposit remains open in all directions and at depth.
The resource estimate, produced by ABH Engineering, was based on geochemical analyses for lithium from composite samples of material collected from the rotary splitter in the reverse-circulation drilling rigs contracted by the company.
The 22.7-sq.-km Gemini property is situated within the Lida Valley, a flat, arid basin with a similar geological setting to the better-known Clayton Valley basin, where Albermarle operates the Silver Peak lithium brine mine. Nevada Sunrise acquired Gemini by claim staking in 2015 with no applicable royalties, and currently holds a 100% interest in the project.
There are no clay lithium deposits yet in production. The most advanced is Lithium Americas‘ (TSX: LAAC) Thacker Pass, also in Nevada.
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