Caeneus Minerals soon to commence drilling at Nevada lithium brine projects
Caeneus Minerals (ASX: CAD), the owner of multiple lithium brine projects in Nevada, USA has updated the market regarding the progress of exploration across its asset portfolio.
From a broader perspective, there has been a slight delay in the completion of technical programs due to unusually wet and snowy conditions in southern Nevada.
However, the group has completed a gravity program at Scotty’s South which confirmed the presence of a sedimentary basin with the potential to host lithium brines. Scotty’s South is a large basin comparable in size to the high profile Clayton Valley.
Drilling will begin at Scotty’s South around April 17.
Of course this is an early stage play and investors should seek professional financial advice if considering this stock for their portfolio.
Potential source rocks of tertiary volcanics are located on the edges of the basin with streams flowing in from all directions. Given the simple and broad gravity, management expects a deep basement.
The strongest conductive layer is between 400 metres and 800 metres depth and is interpreted to have significant potential to host conductive lithium rich brine aquifers or saturated clays, or both.
Columbus Marsh located on trend to the south-east of high profile Clayton Valley
Looking across the group’s other projects, management confirmed that a gravity program had been completed at Columbus Marsh which confirmed simple and broad gravity, once again suggesting a deep basement with a large amount of sedimentary basin cover with the potential to host lithium brines.
Columbus Marsh is a large mature saline basin surrounded by tertiary epithermal systems indicating that hot springs activity has been an influence. From a geological perspective, the fact that Clayton Valley is located on trend to the south-east is significant.
Controlled source audio frequency magnetotellurics (CSMAT), a commonly used, surface-based geophysical method which provides resistivity information of the subsurface through a low impact, non-intrusive technique showed a very conductive, homogenous layer for several kilometres below the surface at Columbus Marsh, which may be the result of very saturated and conductive clays on surface or truly homogenous and conductive layers in the subsurface.
From an overall perspective, management has been encouraged by preliminary data, and with further validation from neighbouring work, the company has decided to evaluate and drill all three brine projects in sequence for the phase I drilling program.
CAD’s anticipated work timetable for the first half of 2017 is shown below.