Feb 17 2016 – Vancouver, BC – As stated in the Press Release Dated December 29th 2015 Nevada Energy Metals Inc. TSX-V: BFF (OTC Pink: SSMLF) has entered into an option agreement with Dajin Resources Corp. TSX-V: DJI (OTC Pink: DJIFF) to earn up to a 60% interest in the Alkali Lake lithium exploration project. Located in Esmeralda County, Nevada the property is approximately 10km (6 miles) northeast of Clayton Valley which hosts Rockwood Lithium Corporation’s lithium brine mining operation and the exploration properties of both Pure Energy Minerals Limited and Lithium X Energy Corp.
The Alkali Lake Project is a grass roots stage lithium exploration project consisting of one hundred seven (107) unpatented placer claims covering approximately 2,760 acres. These claims were staked and are currently held in good standing by Dajin Resources (US) Corp. Dajin also recently completed the acquisition of a second claim block consisting of an additional 84 contiguous claims. These claims are referred to as the “eastern block” and are located approximately 2 miles east of the initial claim group.
The most important use of lithium is in rechargeable lithium-ion batteries for electric vehicles (EV’s), grid-scale energy storage, phones, laptops, cameras, gaming consoles and hundreds of other electronic devices. Lithium-ion batteries are increasingly used for bikes, power tools, forklifts, cranes and other industrial equipment.
Proof of unstoppable lithium demand can be found in the fact that even though oil, natural gas, coal & gasoline prices are down 50% or more, lithium prices increased by about 20% in 2014 and by a larger percentage in 2015.
Benchmark Mineral Intelligence estimates that the “EV market will grow five -fold between 2015 and 2020 while the market for stationary storage will increase 8-fold.”
In Nevada we have already seen Tesla increase the land holdings of their $5 billion under-construction lithium-ion battery gigafactory and Faraday Future strike a deal to build a $1 billion electric car plant.
Geology and Mineralization:
The entire surface area of the Property is mapped as Quaternary playa and lake bed deposits and alluvium.
The developing model which is most applicable to the Alkali Lake Property is a continental lithium brine which is the most important and the primary source of lithium of the three main types of lithium deposits. A 1976 USGS survey of Nevada lists Alkali Lake (known as Alkali Flat) as having returned a lithium value of 640 ppm from a 3 m pit in the centre of the playa.
Management of the company is currently evaluating previous exploration work done on the project with the objective of designing a 2016 exploration program to further advance the Alkali Lake project.
Clayton Valley is the location of the only operating lithium mine in North America. Albemarle Corporation is the present owner of the brine processing evaporation pond and plant complex, known as the Rockwood Lithium Mine, which has been in existence since 1967. Albemarle Corporation acquired Rockwood Holdings, Inc. in 2014 for US$6.2 Billion, which, among other assets, included the Salar de Atacama brine operation in Chile, a lithium chemical processing plant in North Carolina and the Silver Peak operations in Nevada. Production data from the Rockwood Lithium Mine operations is proprietary and unpublished.
The developing model which is most applicable to the Alkali Lake Property is a continental lithium brine.
Research has proven that “all producing lithium brine deposits share a number of first-order characteristics: (1) arid climate; (2) closed basin containing a playa or salar; (3) tectonically driven subsidence; (4) associated igneous or geothermal activity; (5) suitable lithium source-rocks; (6) one or more adequate aquifers; and (7) sufficient time to concentrate a brine.” The Li atom does not readily form evaporite minerals, remains in solution and concentrates to high levels, reaching 4,000 ppm at Salar de Atacama. Large deposits are mined in the Salar de Atacama, Chile (SQM and Albemarle), Salar de Hombre Muerto, Argentina (FMC) and Clayton Valley, Nevada
(Albemarle), the only North American lithium producer.
Exploration to date:
Nevada Energy Metals’ joint venture partner previously completed a limited surface sampling program and conducted a gravity survey at Alkali Lake. The survey was completed by Magee Geophysical Services LLC of Reno, Nevada and the 3D gravity and airborne magnetic basin modeling was prepared by Wright Geophysics Inc. of Elko, Nevada.
The gravity model indicated the claim area is underlain by a circular basin estimated at 4,000 feet in depth (1,200 m) and a second basin exists approximately 3 km to the east. The depth of the eastern basin ranges from 3000 to 4000 feet (1000 – 1200 meter). The survey has helped define some of the basin’s bounding structures in addition to a second basin to the east of the originally staked ground.
The results of the gravity survey indicated that there are in fact two basins in the Alkali Flats area. One underlies Alkali Lake and the other is just to the east in the area covered with a large, low angle alluvial fan.
The eastern claim block was staked following a review of the results of the gravity survey.
Conclusions and Recommendations:
The Alkali Lake Property is situated in close proximity to a producing lithium deposit. The geological concepts and targets for exploration on the Property are based on acceptable models and conclusions.
While this property is an early-stage exploration project and no lithium-bearing brines have been encountered as of this date, limited recent surface sampling has proven that the property could contain measurable amounts of lithium.
Also, the completed geophysical survey and associated interpretation indicate the presence of two deep-seated basins on the property (Please see NI 43-101 Technical Report). A similar basin in the area contains economic amounts of lithium-bearing brines that are currently being exploited. It is reasonable to conclude that the Alkali Lake Property may also host a lithium resource.
Management is currently formulating the 2016 program for the Alkali Lake project and an announcement will be made shortly.
The technical content of this news release has been reviewed and approved by
Ali Alizadeh, MSc P.Geo, MBA, a director of the company and a Qualified Person under the provisions of National Instrument 43-101.
On Behalf of the Board of Directors
Harry Barr Chairman & CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release