Spearmint Resources Inc. [SRJ-TSXV; SPMTF-OTCBB; A2AHL5-FSE] said Friday May 14 that it has received preliminary metallurgical test results from its 100%-owned Clayton Valley lithium clay project in Nevada.
The company said preliminary results from a composite claystone sample indicate lithium extractions of 80% with a sulfuric acid addition of 500 kilograms/tonne and 83% with a hydrochloric acid addition of 375 kilograms/tonne. Further testing is being planned to optimize leaching conditions, the company said in a press release.
Spearmint shares rallied on the news, rising 8.6% or $0.015 to 19 cents on volume of 2.4 million. The shares are currently trading in a 52-week range of 27 cents and $0.025.
Spearmint’s property portfolio includes lithium prospects in the Clayton Valley of Nevada, comprising two claim blocks covering 1,160 acres. The claim blocks border properties held by Cypress Development Corp. [CYP-TSXV; CYDVF-OTCBB; C1Z1-FSE] and Pure Energy Minerals Ltd. [PE-TSXV; HMGLF-OTC; AHG1-FSE].
Pure Energy has a partnership with Schlumberger Ltd. [SLB-NYSE] and is planning to build a brine plant as part of developments that are expected to cost of around US$30 million.
The company said it has recently completed a 10-hole drill program and discovered lithium in every hole, intersecting lithium values as high as 1,840 ppm Li.
Results from 13 holes drilled to date on the Clayton Valley Project, combined with the preliminary testing results, will contribute towards Spearmint’s technical report and potential maiden resource calculation.
The recent drill program was drilled directly into the shared blanket-like claystone deposit where neighbour Cypress Development has already outlined total measured plus indicated resource estimates of 929.6 million tonnes, averaging 1,062 ppm Li, or 5.2 million tonnes LCE.
On May 13, 2021, Spearmint said it had raised $1 million from a financing consisting of 5 million units. Each unit comprises one common share to be issued as a flow-through share and one-half of one non-flow-through warrant.
Each whole warrant is exercisable into one share that is not a flow-through share at an exercise price of 30 cents until May 12, 2023. “We are pleased to have closed this flow-through financing at a significant premium to the market, including an initial investment by certain funds managed by Sprott Asset Management LP,” said Spearmint President James Nelson.
Nelson said the financing puts Spearmint in a strong financial position with $3.5 million in the treasury.
The latest financing round enables Spearmint to be fully funded to pursue multiple work programs. Spearmint’s primary use of flow-through funds will be a planned drill program at its Perron-East gold project, Quebec.