Battery metals explorer Loyal Lithium (ASX:LLI) has unearthed a ‘significant’ mineralised lithium basin from a drilling program at its Scotty Lithium Project in Nevada, US.
The company, which has a $46.72 million market capitalisation, says the basin shows an average grade of 1,120 parts per million (ppm) lithium at a 700ppm cut-off grade and has returned a peak lithium value of 4,007ppm.
Loyal Lithium reports the basin begins near surface (9m deep) and spans a 3.6km-square area with an average thickness of 108m. Therefore, drilling and geophysics data is expected to be utilised for a 3D model and for the creation of an exploration target.
The company notes the 5.7km-long western basin edge comprises alluvial fan rocks, providing ‘excellent’ accessibility for surface mining, as well as enabling access to the basin for a traditional and relatively low-cost surface mining solution.
Loyal Lithium also notes this discovery comes after the neighbouring Bonnie Claire Project, which is owned by Nevada Lithium (CSE:NVLH), produced a sample quantity of battery-grade lithium carbonate from the contiguous sedimentary basin drill core.
Drilling at Bonnie Claire has found lithium only 1km to the east of Loyal Lithium’s claims.
Addressing the results, Loyal Lithium Managing Director Adam Ritchie says: “The Scotty Lithium Project continues to deliver, with spectacular drilling assay results confirming strong lithium mineralisation, representing significant resource potential. With the support of a 5.7km western edge, the sedimentary basin could potentially be accessed via traditional mining solutions from surface.
“The Scotty Lithium Project continues to deliver, with spectacular drilling assay results confirming strong lithium mineralisation”
The neighbouring Bonnie Claire Project has recently completed pilot plant testwork to produce a high-grade lithium carbonate from the adjoining sedimentary clay. Nevada lithium is alive, and the Scotty Lithium Project has shown its potential to play a significant role in the emerging North American lithium supply chain.”
Loyal Lithium is an ASX-listed explorer with a portfolio of projects in tier-one North American mining jurisdictions, including in Nevada, and the James Bay district in Quebec, Canada.
The company’s Scotty project is located about 40km north of the mining town of Beatty, 220km from the city of Las Vegas and 330km from Tesla’s (NASDAQ:TSLA) Nevada Gigafactory. The project can be easily accessed through existing all-weather roads.
Loyal Lithium had $3.752 million cash at hand (excluding $1.5 million raised under a re-compliance prospectus) as of 30 June 2023, according to its latest quarterly report.
Write to Adam Drought at Mining.com.au
Images: Loyal Lithium Ltd