{kanada_flagge}Usha Resources Ltd (TSXV: USHA; OTCQB: USHAF; FRA: JO0) has encountered a similar sequence of sedimentary strata in its second hole (JP22-02) at its Jackpot Lake lithium brine project in Nevada as in hole JP22-01, indicating that the favorable stratigraphy identified in both holes is present throughout the basin as the holes are spaced 2.75 km apart. The stratigraphic sequence of conglomerates and evaporites also has strong parallels with the prolific Clayton Valley lithium basin, which is only a four-hour drive away and hosts the only producing lithium mine in the U.S., according to Usha geologists. Lithium company Albemarle operates its Silver Peak project there, and directly adjacent Pure Energy/Schlumberger are developing the first lithium production in the USA using direct extraction.
{kanada_flagge}Usha Resources Ltd (TSXV: USHA; OTCQB: USHAF; FRA: JO0) has encountered a similar sequence of sedimentary strata in its second hole (JP22-02) at its Jackpot Lake lithium brine project in Nevada as in hole JP22-01, indicating that the favorable stratigraphy identified in both holes is present throughout the basin as the holes are spaced 2.75 km apart. The stratigraphic sequence of conglomerates and evaporites also has strong parallels with the prolific Clayton Valley lithium basin, which is only a four-hour drive away and hosts the only producing lithium mine in the U.S., according to Usha geologists. Lithium company Albemarle operates its Silver Peak project there, and directly adjacent Pure Energy/Schlumberger are developing the first lithium production in the USA using direct extraction.
At the bottom of JP22 02, a zone of higher porosity sand and conglomerate at least 83 meters thick has been identified, overlain by a massive interval of evaporites. Fluids from the overlying zones can drain into this permeable zone. Such porous zones are also present in the Clayton Valley, where they are pumpable aquifers used for production. Pure Energy Minerals, in its Preliminary Economic Assessment (PEA) for its Clayton Valley project, noted that the sand and conglomerate zone contains a large volume of brine with high grades. Usha geologists also consider this parallel encouraging, especially since they measured an average of 334 ppm Li in thirty samples of near-surface soils (<152 meters) in JP22-02, confirming that the soils are highly enriched in lithium. These readings compare very well with the known average of 100 ppm for the Esmeralda Formation, one of the sources of lithium enrichment in the Clayton Valley brines where Albemarle’s Silver Peak Lithium Brine Mine is located.
Figure 1: Drill core from 528 meters depth in JP22-2. The 83 meter thick sand conglomerate zone has the greatest porosity within the aquifer. Comparable zones serve as pumpable zones for lithium production in Clayton Valley.
Deepak Varshney, CEO of Usha Resources commented, “Our recent drilling and assay results demonstrate the immense potential of Jackpot Lake. We have always looked at Clayton Valley as a reference for our own geological model, and leaching of enriched lithium clay within a basin is one of the primary mechanisms by which lithium was introduced into the brine at Albemarle’s Silver Peak operation.”
Stronger drill rig expected in two weeks
Usha has decided to use a larger and more powerful drill rig to advance both the first and second wells to bedrock after discussions with the drill contractors. The new drill rig is expected to be operational in as little as two weeks. Usha expects these deeper holes to accurately survey the porous conglomerate zones identified at the bottom of both holes to date. It is believed that both zones can be significantly expanded again.
Conclusion: Already the first two drill holes on Jackpot Lake show clear parallels to the Clayton Valley. Stratigraphic sequences with more than 45 meters of combined evaporites overlie thick sand and conglomerate zones with higher porosity – apparently throughout the basin. These are the very geological conditions that have made Clayton Valley a successful lithium producer for decades. The comparison to Clayton Valley makes it easier to classify drilling success early on. The comparison will become even more important when Usha releases lithium brine grades soon and an initial resource later. SRK’s recent calculation on the economics of additional production wells at the Silver Peak project calculated a break-even cut-off grade of 50 mg/L, assuming a lithium price (Li2CO3) of US$22,000/t. (The report was published on February 14: https://fintel.io/doc/sec-albemarle-corp-915913-ex963-2023-february-15-19403-2100) The fact that Nevada regulators gave Pure Energy the green light for pilot production using lithium direct extraction in late March may yet prove seminal to Jackpot’s future, as Usha certainly does not want to bring his project on line with old and ineffective evaporation ponds.
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