Company Confirms Favourable Crystalized Field Samples, Gravel and Sand Zones at First Hole
VANCOUVER, BC / ACCESSWIRE / December 8, 2022 / Usha Resources Ltd. ("USHA" or the "Company") (TSXV:USHA)(OTCQB:USHAF)(FSE:JO0), a North American mineral acquisition and exploration company focused on the development of drill-ready battery and precious metal projects, is pleased to announce that drilling is successfully underway at its Jackpot Lake Lithium Brine Property ("Project"). The drill is now at the 250 metre level and its exploration team has encountered multiple zones of evaporite crystals as interbeds, veining, and inclusions and sandy and gravel zones at depth. The presence of evaporite crystals supports the presence of a brine forming environment as crystallization of evaporites would not occur in a freshwater system, while the sandy and gravel intervals are zones of high porosity that are targets for pumping tests for future resource evaluation.
Based on the evidence gathered during drilling and evaluation of the Jackpot Lake system, the Company believes that accumulation of eroded materials from of the surrounding mountain ranges and repeated evaporation events have continued over a geologic time scale in this closed basin system, which is a primary mechanism of brine concentration. Considering the elevated lithium concentrations identified in historic soil samples, such events could theoretically concentrate lithium as rainwater passes through these materials, developing enriched brines at depths. The information obtained through the exploration program to-date indicates that the basin setting and accumulation of minerals is similar to the geologic setting for Albemarle's Silver Peak Nevada Lithium Mine, the only producing lithium mine in North America, where sediments from lithium‑rich surrounding source rocks have accumulated and filled the deposit leading to a concentration of lithium brine due to successive evaporation and concentration events.
"The significance of evidence supporting the geologic setting coupled with the geological similarities and notable proximity to the sole domestic producer of lithium in the United States bodes well for USHA's future potential - both near and long-term," said Deepak Varshney, CEO of Usha Resources. "While the exploration team will remain dialed into completing the current drill campaign and collecting fluid and geological samples for lab testing, I'm also considering our development path options, including potential expansion plans as well as DLE technology partner considerations. The fact that the Biden Administration's critical mineral requirements will quickly come into effect approximately one year from now is not lost on me - 50% of battery components will be manufactured or assembled in North America starting in 2024 and increasing to 100% by the end of 2028. With the demand for lithium resources accelerating and no capital constraints holding us back, we will drill smartly, test expeditiously, and play to win."
A video update from the Company is available at this link.
Jackpot Lake Lithium Brine Property
USHA's Jackpot Lake Lithium Brine Property is located within Clark County, 35 kilometres northeast of Las Vegas, Nevada, and is comprised of 140 mineral claims that total 2,800 acres (approximately 11.3 km2).
The Project's geologic setting is similar to that of Albemarle's Silver Peak Nevada Lithium Mine, the only producing lithium mine in North America, which has operated continuously since 1966, where sediments from lithium‑rich surrounding source rocks accumulate and fill the deposit leading to a potential concentration of lithium brine due to successive evaporation and concentration events.
The Company has permitted 2,700 metres over six holes and has commenced a maiden drill program with the goal of defining a 43-101 resource. The Project target was identified based on geophysical studies and 129 core samples collected by the USGS with an average lithium value of 175 ppm with a high of 550 ppm. The present average grade for Albemarle's project is approximately 121 ppm.
Modelling indicates that the Project target comprises the entirety of the Company's claim block (2,800 acres; 11.3 km2) and is open in all directions for expansion. The target is shallow, predominantly above bedrock depths of 625 meters, and is approximately 450 metres thick. The total basin within which the target is situated is estimated to be approximately 10,900 acres.
The Project's Qualified Professional (QP) is Michael Rosko, a professional geologist with over 30 years of experience, with extensive experience with world-class lithium brine projects including Tier 1 projects such as Galaxy's Sal de Vida Deposit, Millennial Lithium's Pasto Grandes Deposit, and Lithium America Corp's Cauchari-Olaroz Deposit.
The following historical work has been completed that suggests the presence of a highly concentrated brine with the potential to contain lithium:
- 129 core samples collected by the USGS with an average lithium value of 175 ppm with a high of 550 ppm and spectrographic and atomic-absorption analyses of 135 stream sediment samples confirming the potential for lithium mineral deposits. The present average grade for Albemarle's project is approximately 121 ppm.
- Gravitational surveying which has identified a closed basin, critical for ensuring brines remain within the basin without dilution from external water sources.
- Geophysical modelling based upon gravitational and controlled source audio magnetotellurics/magnetotellurics (CSAMT/MT) surveys has provided evidence of highly concentrated brines which are relatively near the surface. The CSAMT survey results of the Jackpot Lake Project demonstrate a large consistent body of very low resistivity - consistent with highly concentrated brine behavior - throughout the property, predominantly above bedrock depths of 625 meters.
Qualified Person
The technical content of this news release has been reviewed and approved by Mr. Seth Cude, P.G., CPG. RM, M.Sc., a qualified person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101").
About Usha Resources Ltd.
Usha Resources Ltd. is a North American mineral acquisition and exploration company focused on the development of quality battery and precious metal properties that are drill-ready with high-upside and expansion potential. Based in Vancouver, BC, Usha's portfolio of strategic properties provides target-rich diversification and consist of Jackpot Lake, a lithium project in Nevada; Nicobat, a nickel‑copper‑cobalt project in Ontario; and Lost Basin, a gold-copper project in Arizona. Usha trades on the TSX Venture Exchange under the symbol USHA, the OTCQB Exchange under the symbol USHAF and the Frankfurt Stock Exchange under the symbol JO0.
USHA RESOURCES LTD.
"Deepak Varshney" CEO and Director
For more information, please call Tyler Muir, Investor Relations, at 1-888-772-2452, email [email protected], or visit www.usharesources.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-looking statements:
This news release may include "forward-looking information" under applicable Canadian securities legislation. Such forward-looking information reflects management's current beliefs and are based on a number of estimates and/or assumptions made by and information currently available to the Company that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors that may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. Readers are cautioned that such forward-looking information are neither promises nor guarantees and are subject to known and unknown risks and uncertainties including, but not limited to, general business, economic, competitive, political and social uncertainties, uncertain and volatile equity and capital markets, lack of available capital, actual results of exploration activities, environmental risks, future prices of base and other metals, operating risks, accidents, labour issues, delays in obtaining governmental approvals and permits, and other risks in the mining industry.
The Company is presently an exploration stage company. Exploration is highly speculative in nature, involves many risks, requires substantial expenditures, and may not result in the discovery of mineral deposits that can be mined profitably. Furthermore, the Company currently has no reserves on any of its properties. As a result, there can be no assurance that such forward-looking statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements.
SOURCE: Usha Resources Ltd.