Caeneus receives permits for Lida Valley drilling program
Caeneus Minerals (ASX: CAD) informed the market on Monday morning that it had received approvals from the Bureau of Land Management, enabling it to commence a drilling program at the group’s Lida Valley lithium brine project located in Nevada.
Following approval, management said that it is now in advanced discussions with potential drilling contractors who have significant experience in exploring for brines in the Nevada area, including work for Rockford on the Silver Peak Mine, and recently for Iconic Minerals, with the latter being particularly significant in terms of recent developments at its Bonnie Claire project.
CAD noted a fortnight ago that Iconic had announced geochemical results of drill cuttings at Bonnie Claire containing highly anomalous lithium. The Bonnie Claire property is located immediately to the north of CAD’s Scotty’s South project, and the fact that they have discovered lithium in drill cuttings of up to 1410 ppm lithium has provided enthusiasm that CAD’s project may have similar geological features.
In particular, management noted that the broader Sarcobatus Flats region was 1.5 times larger than nearby Clayton Valley, reportedly hosting a large lithium brine system.
However, at this stage CAD remains a very early stage exploration play in the lithium sector and investment decisions should not be made on the basis of prospective exploration success. Seek professional advice if considering CAD for your portfolio.
As CAD pointed out, even news flowing from its peers needs to be fully assessed as it needs to be proven that there is the existence of lithium contained within brines from leaching into fluids over time.
With regard to CAD’s Lida Valley asset, it is underlain by valley fill sediments derived from lithium rich volcanic rocks that compose parts of the surrounding hills. The volcanic rocks and derived basin-fill sediments include lithium rich volcanic tuff and ash beds. Management sees the environment as ideal for the formation and accumulation of lithium evaporates and brines.
More specifically, it interprets that Montezuma Peak which lies between the Clayton Valley’s Silver Peak Mine and Lida Valley is representing a potential source of lithium within the region. On this note, Montezuma Peak has been the interpreted source for the lithium located in brine discoveries in the Clayton Valley and it interpreted that Lida Valley represents the southern migration of this flow.
These underlying assumptions contribute to the group’s strategy regarding its drilling program which will include five drill holes as outlined below. However, management said that it will be progressively analysing data from each hole drilled and the exact location of subsequent drill holes may change throughout the course of the program.
When the experts at Next Investors have a stock pick, it may pay to listen.
The Next Investors have been investing in ASX small cap stocks for years, with their best small cap picks yielding returns of 1,200%, 1,120%, 900% and 678%.
They have just revealed their hand-picked, FY2021 stock portfolio of high conviction long-term investments.
Click the link below to see what they are currently investing in.
S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.