Red Mountain picks up two tasty new lithium assets in Nevada
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Red Mountain Mining has acquired two highly prospective and strategic lithium assets in an emerging lithium district in Nevada, US, from Chariot Corporation.
The Lithic Lithium Project and the Mustang Lithium Project consist of 153 claims covering 1,178ha prospective for claystone hosted lithium in the prolific Big Smoky and Monte Cristo Basins of Esmeralda County.
This region currently hosts the only operating lithium mine in the USA – the Silver Peak Lithium Mine owned by Albemarle Corporation (NYSE:ALB) and is the nexus of claystone hosted lithium exploration and development in the USA.
The Lithic project also adjoins Jindalee Resources’ (ASX:JRL) Clayton North Project and Victory Resource’s Smokey Lithium Project – and has not been the subject of extensive exploration activities to date.
And the Mustang project is just 9km south of Belmont Resources (CVE:BEA) Kibby Lake project and 40km east of American Lithium’s (CVE:LI) TLC deposit with similar host rocks.
Nevada, is a Tier-1 mining jurisdiction, and hosts the world’s largest known lithium deposits including Lithium America’s Thacker Pass, with large pervasive lithium mineralisation in closed basins; American Lithium’s TLC Lithium Project; and Cypress Development’s Clayton Valley Project.
And Red Mountain Mining (ASX:RMX) says the projects are positioned near potential offtake partners and could be set to benefit from domestic supply development initiatives in the US.
“RMX views this very significant transaction as an excellent opportunity for the company, as it increases our lithium exposure in Nevada, USA; with the aid of Chariot’s US based expert claystone lithium geologists we look forward to efficiently advancing these highly prospective lithium projects,” chairman Troy Flannery said.
Not to mention, the USA recently invoked the Defence Production Act in an effort to encourage and secure domestic production of battery materials – which bodes well for future offtake agreements.
RMX has also received firm commitments from institutional and sophisticated investors to raise $1.8 million via a share placement at $0.004 per share to fund the maiden exploration campaign at the Lithic and Mustang lithium projects.
At Lithic, Jindalee’s maiden exploration drilling program last year determined a northeast trending fault crosses the northern part of their its block, resulting in a Quaternary gravel cover over the principal lithium target.
The Lithic claim block is underlain by this same host lithology but is not covered by extensive Quaternary gravel.
RMX intends to undertake additional sampling, geological mapping and reconnaissance of the Lithic property and surrounding areas of interest.
The company also plans to conduct a line of shallow trenches over a 2000m, northeast trending line through the centre of the claim block.
And at Mustang, RMX will conduct additional geological mapping and surface sampling within the Mustang property, with results expected to inform the planned RC drilling program.
This article was developed in collaboration with Red Mountain Mining (ASX:RMX), a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.