Lithium Exploration
In their wake: Juniors harness lithium’s future inspired by automakers
In the junior segment, peering at more advanced-stage projects, especially in the surrounding areas, has traditionally been the benchmark for assessing deposit potential. However, in today's lithium segment, a convergence of new technologies and growing interest from both Washington and the private sector suggest that companies on the development phase and brink of production are now paving the way for those in earlier stages of exploration.
A relatively recent entrant into Nevada's lithium sector, Pan American Energy, has made notable strides. The company acquired the Horizon Lithium project in the Big Smokey Valley in October 2022. Since then, Pan American Energy has completed its maiden drill program, consisting of 21 drill holes and covering 14,342 feet, leading to a lithium cluster discovery: "The combined cumulative total is over 10.2 million t with an average grade of 678 ppm lithium, based on a conservative 300 ppm Li cut-off," stated Jason Latkowcer, president and CEO of the company.
The Horizon project is situated adjacent to the Tonopah Flats project owned by American Battery Technology Company (ABTC). Latkowcer expressed excitement about ABTC receiving approximately US$57 million in funding from the Department of Energy under the Bipartisan Infrastructure Act to establish a lithium hydroxide plant designed explicitly for claystone extraction, the same mineralogy present at Horizon. In line with this, Pan American partnered with Integrity Mining and Industrial (IMI), a subsidiary of Integrity Bio-chemicals. This partnership involves providing samples and enabling metallurgical tests on core samples from claystone and hard rock. "We are now actively evaluating geophysical exploration techniques such as passive seismic and resistivity and focus on Phase 3 drill planning and permitting. In tandem with ongoing exploration, we are actively working on the necessary steps to complete a Preliminary Economic Assessment (PEA) for the Horizon Lithium project," concluded Latkowcer.
In a less advanced stage and boasting a decade of experience in Nevada, Grid Battery Metals is a notable player with assets including the Clayton Valley, Texas Springs, and Volt Canyon projects. In early 2023, Grid rebranded from Nickel Rock Resources, signaling a shift in focus towards (EV) battery metals, particularly lithium. As part of its strategic plans, the company intends to separate its nickel and lithium properties into two distinct publicly traded entities: "This strategic move aims to give shareholders the advantage of an equity interest in two publicly traded companies at no additional cost to the current Grid shareholder. We anticipate listing the new company in February 2024," commented Tim Fernback, president and CEO of Grid Battery Metals.
"We have conducted comprehensive soil sampling and geophysics assessments, and the results strongly indicate that this project could evolve into a flagship property due to its high prospect and the presence of lithium deposits like those found in Surge's Northern Nevada lithium project," continued Fernback.
In the upcoming months, Grid will analyze the assay lab results and combine them with the data from the soil samples and geophysics works to develop a multi-phase test drill program.
“I believe we will witness increased government support for early-stage companies that show significant promise. While the current allocation of incentives tends to favor later-stage projects, there is a growing awareness of the potential benefits of investing in earlier-stage ventures.”
Jason Latkowcer, President and CEO, Pan American Energy
Greg Reimer, the president and CEO of Surge Battery Metals, revealed that the results from the 2022 drill campaign at the Nevada North project, received in late January 2023, were the most promising to date. Encouraged by these findings, the company expanded drilling beyond the state's five-acre disturbance limit for mineral exploration. The company initiated a Plan of Operations, conducted metallurgical testing on soil samples to identify the type of clay present, and performed a preliminary test on lithium recovery rates. More recently, in spring 2023 it executed another drill program, indicating a commitment to further exploration and advancement in their lithium endeavors. "The initial five holes yielded significant results, with one hole averaging 4,067 parts per million Li and reaching a high of 8,070 parts per million Li. The program's objectives included extending the strike length from 1.6 km (as per the 2022 program) to 3.5 km, expanding the resource area by 2 km, and broadening the project width from 400 m to slightly over 900 m," commented Reimer.
The US government has taken significant steps to support lithium projects nationwide, exemplified by initiatives such as Ioneer's Rhyolite Ridge, Lithium America's Thacker Pass, and ABTC. However, in a capital market environment constrained by sentiments not aligning with fundamentals and considering the financially demanding nature of junior companies, questions arise about potential government assistance for the exploration segment. In discussions with Reimer, he clarified that while IRA provides credit for EV purchases and loans for mine development, companies must meet specific financial requirements to qualify for these benefits. Unfortunately, Surge does not meet these criteria. As a result, they have been advocating for government grants to expedite project development, recognizing the potential challenges posed by the current financial landscape and the nature of exploration projects: "We have entered contracts with Kemetco Research and renowned lithium processing expert, and Surge Board member Vijay Mehta, to develop the necessary flow sheet. This is where the government of the US government can support mining companies like ours, helping us prove that lithium can be extracted from clays and developed commercially in the current environmental context," he concluded.
Noram Lithium is a Canadian-based company advancing its Zeus lithium project to production in the Clayton Valley. Zeus has measured and indicated resources of approximately 6 million t of LCE – 1,034 million t at 941 ppm lithium – and inferred resources of 1.09 million t LCE – 235 million t at 871 ppm lithium at a 400 ppm Li cut-off. According to Noram Lithium's CEO, Greg McCunn, the project has a PFS underway. He envisions a plant processing 6 million t/y of ore, which will translate into almost 33,000 t/y of lithium carbonate. "This will be approximately 5% of the world's lithium carbonate supply today, but maybe only 1% if we fast forward to the forecasted demand in 2030," explained McCunn.
Article header image courtesy of Ioneer