CAD bullish on lithium play after due diligence
Caeneus Resources (ASX:CAD) will move ahead with its acquisition of lithium projects in Nevada after an initial technical work-up came back overwhelmingly positive.
It told its shareholder today that while the exact details of a gravity survey and formation sampling still need to be worked up in the lab before they can be reported to the market, that the initial indications were enough for it to move forward.
“Inspection of the claims has shown beyond doubt that the Muddy Mountain claims have the potential to define a multi-million tonne lithium resource grading in the range 0.3% to 0.5% lithium,” the company said in a statement.
The Lida Valley project meanwhile was the site of ground gravity survey – with the early indications positive enough for the company to move on the project option.
At this stage, it looks as if the projects cover a sedimentary basin similar to that being tapped at the nearby Clayton Valley – which contains at least five lithium-bearing aquifers.
The information from the initial work will be given to shareholders before a vote on the acquisition of the projects. Should approval be given, CAD will then begin a drilling program at shllow depth – it has previously said drillholes would be less than 300m in depth.
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CAD is currently running the rule over two projects in Nevada thought to be rich in lithium-bearing brines, the Lida Valley and Muddy Mountains projects.
CAD is attempting to cash in on the buzz currently being generated by lithium’s role in the lithium-ion battery revolution which is in part being driven by Tesla’s electric cars.
Tesla currently has a so-called ‘gigafactory’ in Nevada, and has previously stated its preference to source materials from North America.
Muddy Mountain is a potential high impact ‘district-scale’ lithium clay project, with strongly anomalous lithium up to 1000 parts per million lithium previously hit as part of historical drilling.
The Lida Valley Project is a significant regional Intermontane Basin with a drainage area of approximately 150km2.
It is considered by CAD to be an ideal location for the development of lithium rich brine deposits.
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