Mining
Thursday, February 22nd, 2024 3:11 pm EDT
Key Points
- Maiden Mineral Resource Estimate (MRE) Released:
- Surge Battery Metals Inc. has announced the release of a maiden mineral resource estimate (MRE) for its Nevada North lithium project (NNLP).
- Prepared by Dr. Bruce Davis, FAusIMM, the MRE includes a pit-constrained inferred mineral resource of 4.67 million tonnes (Mt) of lithium carbonate equivalent (LCE) grading 2,839 parts per million (ppm) lithium (Li) at a 1,250 ppm Li cut-off.
- Project Highlights and Expansion Potential:
- The NNLP boasts the highest-grade lithium clay resource in the United States, with over four Mt of LCE grading 3,167 Li ppm at a 2,000 ppm Li cut-off.
- The MRE suggests significant expansion potential, with the known footprint of mineralization not fully covered, indicating substantial room for growth.
- Future Plans and Next Steps:
- Surge Battery Metals plans to undertake metallurgical and flowsheet test work, surface exploration programs, and expansion drilling in 2024.
- Additionally, the company anticipates undertaking a Preliminary Economic Assessment (PEA) study on the NNLP with a target reporting date in Q4 of 2024.
Surge Battery Metals Inc. has released a maiden mineral resource estimate (MRE) on its Nevada North lithium project (NNLP). The MRE, which has an effective date of Feb. 16, 2024, was prepared by Dr. Bruce Davis, FAusIMM, and includes a pit-constrained inferred mineral resource of 4.67 million tonnes (Mt) of lithium carbonate equivalent (LCE) grading 2,839 parts per million (ppm) lithium (Li) at a 1,250 ppm Li cut-off.
Highlights:
- Highest-grade lithium clay resource in the United States, with 4.7 Mt LCE grading 2,839 ppm Li at a 1,250 ppm cut-off.
- MRE includes over four Mt of LCE grading 3,167 Li ppm at a 2,000 ppm Li cut-off.
- Significant expansion potential: The MRE only covers a portion of the known footprint of mineralization, with substantial potential for growth.
Greg Reimer, chief executive officer and director, commented: “We are thrilled with today’s maiden MRE results as they solidify that the NNLP is a significant lithium deposit and one of the highest-grade lithium clay deposits worldwide. At higher grade cut-offs, there are still very appreciable volumes of lithium that are largely contained in the clay horizons nearest surface. We will continue to derisk the NNLP through metallurgical test work, technical studies and permitting. As well, we expect to continue to expand our known resource, and certainty around it, through drilling.”
The lithium mineral resources at the NNLP are hosted by multiple shallowly dipping and laterally extensive clay beds, separated by tuff units. The primary horizon (“Cu3”) contains the highest grades and is typically the first horizon intersected in drilling. Clay units primarily consist of massive green and dark brown laminated clay with white carbonate clots and euhedral calcite crystals. Seven lithium-rich beds have been identified to date that range in thickness from >50m to 2.5m and average around 15m thick.
The MRE for the NNLP is based on twenty drill holes completed between 2022 and 2023 under a Notice of Intent (NOI) permit for a total of 2,758m and 1,973 samples. Eight of the twenty drill holes were reverse circulation (RC), five were sonic, and seven were diamond core. The 3D geological model used to inform the block model was developed in Leapfrog(TM) by SideQuest Geological Modelling.
Many of the metrics used to derive a 1,250 ppm Li base cut-off grade were obtained in part from review of available information for deposits similar to that at the NNLP. It is expected that items such as recovery, bulk density and operating cost will change in the future with additional test work and engineering studies. The metrics used to derive a 1,250 ppm Li base case cut-off grade and define the resource pit shell include:
- Operating Cost per Resource Tonne: US$88.50
- LCE Price: US$20,000/t LCE
- Recovery: 73.5%
- Bulk Density: 1.79 t/m3
- Pit Slope: 27degree
- Li to LCE conversion factor: 5.323
The inferred lithium mineral resource estimate is shown in bold in Table 1. The table includes the tonnage sensitivities to different cut-off grades up to a maximum of 4,000 ppm Li. The inferred resource estimate includes 100% of the resources on Surge’s 100% owned ground and 25% of resources within the private block of ground in which Surge owns 25% of the subsurface rights.
Technical Report
Under NI 43-101, Section 5.3(1)(c), Surge must file a technical report regarding the MRE within forty-five (45) days of the date of this news release.
Next Steps
The remainder of 2024 will be a busy year as the company prepares for a much larger and expanded drill program upon receiving its Exploration Plan of Operations Permit. In 2024, Surge plans to complete the following:
- Metallurgical and Flowsheet Test Work
- Metallurgical test work is well underway with Kemetco. We anticipate releasing the results of this testing in Q1 of 2024.
- Surface Exploration Programs
- In 2024, Surge plans to complete a detailed surface mapping program over the property and additional soil sampling. Combined, these will help identify additional areas of outcropping clay units and help to improve our geological understanding.
- Spring / Summer Expansion Drilling
- In early spring, Surge will work with the BLM to determine how much disturbance can be reclaimed under the current NOI permit to complete additional drilling in 2024. As well, Surge plans to drill on the M3 JV property.
- Preliminary Economic Assessment (PEA)
- Surge expects to undertake a PEA study on the NNLP with an anticipated target reporting date in Q4 of 2024.
Qualified Person as Defined Under National Instrument 43-101
Alan J. Morris, MSc, CPG of Spring Creek, Nevada, a Qualified Person as defined under National Instrument 43-101 has reviewed and approved the technical aspects of this news release.
This news release, including disclosure of the MRE has also been reviewed by Dr. Bruce Davis, FAusIMM, a Qualified Person as defined under NI 43-101 and is independent of Surge.
About Surge Battery Metals Inc.
Surge Battery Metals, a Canadian-based mineral exploration company, is at the forefront of securing the supply of domestic lithium through its active engagement in the Nevada North Lithium Project. The project focuses on exploring clean, high-grade lithium energy metals in Nevada, USA. Lithium is a crucial element for powering the electric vehicles of tomorrow. With a primary listing on the TSX Venture Exchange in Canada and the OTCQX Market in the US, Surge Battery Metals Inc. is strategically positioned as a key player in advancing lithium exploration, contributing significantly to the sustainable future of the electric vehicle industry. At Surge Battery Metals, we are not just exploring minerals; we are pioneering the path to a cleaner and more sustainable future, driving innovation in the lithium sector, and contributing to the evolution of the electric vehicle industry.
About the Nevada North Lithium Project
The Company’s Nevada North Lithium Project, located in the Granite Range southeast of Jackpot, Nevada 73 km north-northeast of Wells, Elko County, Nevada. The first two rounds of drilling, completed in 2022 and 2023, identified a strongly mineralized zone of lithium bearing clays occupying a strike length of more than 3,500 meters and a known width of up to 950 meters. Highly anomalous soil values and geophysical surveys suggest there is potential for the clay horizons to be much greater in extent. The Nevada North Lithium Project has a pit-constrained Inferred Resource containing an estimated 4.67Mt of Lithium Carbonate Equivalent (LCE) grading 2,839 ppm Li at a 1,250 ppm cut-off.
