Caeneus to run the rule on lithium play
Lithium hopeful Caeneus Minerals (ASX:CAD) will begin exploration work at the Lida Valley brine project in Nevada as it attempts to prove up a resource in Tesla’s backyard.
The ASX-listed company told its shareholders earlier today that it would kick off exploration in May, starting with a ground gravity program.
The CAD board will visit the area in the second week in May, as it figures out whether or not to take an option on the project.
At this stage, it is thought the project covers a sedimentary basin similar to that in existence at the Clayton Valley – which contains at least five lithium-bearing aquifers.
The gravity program should help define the limits of the basin, and identify any significant structures at the project. These structures often host lithium-bearing fluids.
The information gleamed from the program will be supplied to shareholders ahead of a vote on the acquisition of the Lida Valley project.
After shareholder approval, drilling will begin, with drillholes pencilled in to be less than 300m in depth.
More on Caeneus (ASX:CAD)
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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