Black Rock Desert Exploration Project
LiCo Energy Metals has entered into an option agreement whereby the Company may earn an undivided 70% interest subject to a 3% Net Smelter Return Royalty in the existing Black Rock Desert Lithium Project that consists of 199 placer claims (2,560 acres/ 1,036 hectares) in southwest Black Rock Desert, Washoe County, Nevada. The Agreement is "non-arms’ length" and so constitutes a related party transaction, as the Company’s President and CEO is also the President and CEO of Nevada, and is subject to TSX Venture Exchange (the "Exchange") approval.
The western arm of the Black Rock Desert covers an area of about 2,000 square kilometers and contains 5 of the 30 currently listed Known Geothermal Resource Areas in Nevada. The Property covers an area of playa underlain by a moderately deep basin interpreted from gravity and seismic surveys indicating a maximum thickness of valley-fill deposits of about 1,200 m/3,600 ft. A high salt content prevents any significant vegetation from growing on the playa surface. Locally, the basin is being fed in part by boiling springs and siliceous sinter containing strongly anomalous Lithium values (5mg/l) that flank the property on the west side. (U.S. GEOLOGICAL SURVEY Open-File Report 81-918.) While these lithium values are well below those of producing lithium brines, they do represent a significant source of metal available for evaporative concentration within the playa basin.
The geologic setting combined with the presence of lithium in both active geothermal fluids and surface salts within the Black Rock Desert property match characteristics of lithium brine deposits at Clayton Valley, Nevada and in South America. Geothermal fluids adjoining the claims are known to contain anomalous lithium values and a recently completed surface silt sampling program confirmed values containing up to 520 ppm lithium. Although geological work has been undertaken for geothermal energy production in the area, the lithium in brine potential of the playa has not been specifically studied. Initially, the lithium target in this basin was highly conceptual, however, recent exploration results are highly encouraging and warrant a detailed exploration drilling for a Clayton Valley type brine deposit.
"This Agreement significantly adds to our lithium exploration portfolio in Nevada and we are looking forward to working with Nevada Energy Metals to further explore and develop this exciting property."
CEO, Rick Wilson