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Nevada Sunrise Metals (TSXV: NEV) announced on Tuesday an initial resource estimate for its Gemini lithium project that “exceeded expectations” given the limited drilling the company has done to date.
The resource estimate, produced by ABH Engineering within NI 43-101 regulations, was based on geochemical analyses for lithium from composite samples of material collected from the rotary splitter in the reverse circulation drilling rigs contracted by the company.
Results of the drilling, according to Nevada Sunrise, proved the existence of clays mineralized with lithium, exhibiting very good geological continuity. As a result, an inferred resource was calculated for lithium carbonate hosted in the clays.
In total, there were approximately 1.3 million tonnes of lithium (or 7.1 million tonnes of lithium carbonate equivalent) contained within 1.2 billion tonnes of mineralized clay at an average lithium grade of approximately 1,130 parts per million. A cut-off grade of 400 ppm lithium was used.
This open pit resource, as Nevada Sunrise CEO Warren Stanyer says, has “exceeded expectations” given that only five holes have been drilled to date in just 15% of the project area. The deposit remains open in all directions and at depth.
The 22.7-sq.-km. Gemini property is situated within the Lida Valley, a flat, arid basin with a similar geological setting to the better-known Clayton Valley basin, where Albermarle operates the Silver Peak lithium brine mine. Nevada Sunrise acquired Gemini by claim staking in 2015 with no applicable royalties, and currently holds a 100% interest in the project.
“Gemini has emerged as one of the world’s largest lithium resources, and the fourth largest in the United States. We look forward to additional exploration at the project to effectively expand the size of the resource, leading to the production of a preliminary economic assessment,” he stated.
Shares of Nevada Sunrise surged 40% by 1:20 p.m. ET following the Gemini resource estimate announcement. The Vancouver-headquartered junior has a market capitalization of C$7.7 million.
