Nevada Lithium Resources to start Bonnie Claire drilling, Nevada

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Nevada Lithium Resources Inc. [NVLH-CSE; NVLHF-OTC; 87K-FSE: 87K] provided an update on the 2023 mineral exploration and development work on its 100%-owned Bonnie Claire lithium project, located in Nye County, Nevada.

The work program is designed to support a Pre-Feasibility Study (PFS), building upon the company’s 2022 NI 43-101 Preliminary Economic Assessment for Bonnie Claire. The PEA indicates a Net Present Value (8%) of US$1.5 Billion and 23.8% IRR (both after tax) using a US$13,400 per tonne LCE price.

Highlights: Core drilling program designed to follow-up on the successful 2022 program which returned high grade lithium values at Bonnie Claire, including 3,201 ppm Li over 520 ft (158 m) within a wider interval of 1,315 ppm Li over 2,000 ft (610 m).

Expand upon the recent production of marketable battery grade lithium carbonate with the production of marketable battery grade lithium hydroxide and other marketable products.

Examine the potential for lithium bearing brines at Bonnie Claire through the extension of select core holes past 2,000 feet (610 metres) to the geological “basement” combined with results from planned 3D seismic surveys.

Stephen Rentschler, CEO,commented: “Following the success of our recently completed financings, we are excited to provide an update on the 2023 work program. The 2023 program is designed to propel the Project towards Pre-feasibility Study (PFS) completion. We will also investigate the potential for lithium bearing brines on the Project and look forward to the possibility of adding even more value for shareholders.”

Drilling is expected to commence shortly on the Project. Site preparations have begun under the Plan of Operations that was approved by the US Bureau of Land Management (BLM) last year. The permitted exploration area covers 4,146 acres (16.78 km2), of which 3,271 acres (13.24 km2) are salt playa.

Having the baseline environmental and related studies in place will aid in advancing further permitting of the Project. The Plan is anticipated to be further expanded in 2023.

The core drilling program will test to depths of 2,000 feet (610 metres) and gather material for metallurgical testing, and geochemical sampling, to support a targeted increase in mineral resource confidence from the inferred category to the indicated and measured categories. As part of the program, geological core logging, geotechnical analysis, and water sampling will be completed. Geophysical surveying of the core holes will also be completed and aid in targeting permeable zones ahead of pumping tests.

Additional testing on two of these core holes will be performed to support the company’s examination of the potential for lithium-bearing brines at Bonnie Claire. As part of this testing, two of the core holes will be extended past 2,000 feet (610 metres) to the geological “basement”. Information from these holes will be combined with the results from a detailed 3d seismic survey that is expected to commence before the end of the year.

Ongoing metallurgical testing is being conducted by Hazen Research Inc. under the guidance of Global Resource Engineering Ltd. The metallurgical work program being advanced by Hazen resulted in the production of marketable battery grade lithium carbonate, as announced earlier this year. The source material for ongoing metallurgy is core from last year’s drilling and will be supplemented with material from the pending 2023 drill program.

Hazen continues to build upon the work completed as part of the PEA, including the essential components required to support a Prefeasibility Study on the Project. This includes further de-risking and demonstration of the flowsheet through to the production of marketable battery grade lithium hydroxide and other marketable products, including sulfate of potassium fertilizer.

The company had previously contracted Barr Engineering Company of Minneapolis to design and execute a demonstration test program for borehole mining at Bonnie Claire. This ongoing work is being supplemented by the work of Kinley Exploration LLC, located in Overland Park, Kansas. Geotechnical information collected from core holes and down-hole well testing will be used to design and carry-out the borehole test. A borehole mining approach offers the opportunity to significantly reduce surface disturbance compared to a conventional open pit operation.

Bonnie Claire has a current NI 43-101 inferred mineral resource of 3,407 million tonnes (Mt) grading 1,013 ppm Li for 18.372 million tonnes (Mt) of contained lithium carbonate equivalent (LCE), at a cut-off grade of 700 ppm Li.

The PEA for Bonnie Claire indicates a Net Present Value (8%) of US$1.5 Billion (after tax) using US$13,400 per tonne LCE and after-tax IRR of 23.8%. With an LCE price of US$30,000 per tonne, the Net Present Value (8%) of the Project is US$5.9 Billion (after tax) and an IRR of 60.3%.

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