Overview

Overview

Located in Lander county, Nevada, the Spencer lithium brine project is 200 miles northeast of the Silver Peak lithium brine operation. Austin is the nearest town at 16 miles east, and can supply basic needs of an exploration programme. Spencer Hot Springs lies on the eastern margin and is covered by the north claim block. The Project is located 160 miles east of the Tesla Gigafactory, which is expected to be a significant consumer of lithium carbonate.

The tenements consist of 146 BLM unpatented placer claims, totalling an area 11.8km2 over two claim blocks, which are held 100% by Zenolith. The claims are granted in perpetuity, with fees being paid annually. The claims confer surface rights for any activities related to mineral exploration and production. Topography of the project area is flat, with slight elevations, making the area ideal for a lithium brine operation.

Bradda Head currently holds a 55% interest in the project.

Spencer
Project Highlights
  • Reconnaissance-level surface auger/post hole sampling completed from depths of 1m – 2m at 13 locations
  • Results showed lithium grades ranging from 41 ppm Li to 550 ppm Li
  • Single water sample taken from Spencer Hot Springs, returning 2 ppm Li (20,000 ppb Li), being very anomalous for a fresh water sample. Only 33 of the 5,187 National Uranium Resource Assessment samples taken in Nevada exceed 1,000 ppb Li, with 8 being from the Clayton Valley area.
Next Steps

A two phase approach will be followed:

Phase 1

A BLM NOI will be completed for exploration activities that will disturb less than 5 acres and permission to start work is expected within 30 days after submission. Proposed exploration activities include geophysical surveys: passive seismic to better define the basin architecture and determine the position of basin margin controlling faults; and a magnetotelluric survey designed to outline the presence of and distribution of conductive layers in the sub-surface that likely represent brine.

Phase 2

Initial drilling and subsequent sampling and analysis of sub-surface brines will allow testing of the presence and concentration of lithium.

Should lithium brine be intersected in the initial drill test program, additional detailed systematic drilling and downhole geophysical studies will be required to assess the lithium brine distribution in the sub-surface aquifers.  Key criteria to assess will include the lithium grade and distribution, the presence or absence and distribution of any deleterious elements, the characteristics of the brine aquifer such as porosity, permeability and transmissivity. Pump testing will be required to assess potential extraction rates and aquifer re-charge.  These combined activities will provide the key inputs for a Mineral Resource to be estimated and a scoping study to be completed.