VANCOUVER (miningweekly.com) – A new technical report on Lithium Americas’ 100%-owned Lithium Nevada project has increased the compliant measured and indicated resources by about 80% over the prior 2016 estimate, establishing the company as the largest and highest-grade known claystone lithium resource in the US.

The National Instrument (NI) 43-101-compliant resource update lifted the combined measured and indicated resource to six-million tonnes of lithium carbonate equivalent (LCE), grading on average 2 917 ppm lithium. The report also outlined an inferred resource of 2.3-million tonnes of LCE grading 2 932 ppm lithium.

Significantly, the report identified an extension of high-grade (grading on average 3 998 ppm lithium) and near-surface lithium mineralisation next to and northwest of the proposed 2012 openpit boundary.

Lithium Americas advised that it had successfully completed process testwork to confirm the production of high-value lithium products using acid leaching on lithium-bearing claystone. Market observers have noted that, since there are no producing lithium clay operations anywhere, the flow sheet remains a concern and investors would probably be eager to see some proof of the processing success.

The company suggested that it can produce LCE by using “commercially proven” acid leaching, purification and crystallisation technology.

Lithium Americas said it is on track to release results of an NI 43-101 preliminary feasibility study before the end of June.

“The results reveal additional high-grade and near-surface lithium mineralisation northwest of the original pit area that was proposed in 2012. We are pleased that the 2017 exploration programme has achieved the goal of demonstrating scalability of the project, in an area we believe minimises permitting and schedule risks,” commented Lithium Americas’ president of North American operations Alexi Zawadzki in a recent press release.

Meanwhile, Lithium Americas remains focused on developing the Cauchari-Olaroz lithium project, located in Jujuy, Argentina, in which it has a 50% stake in Minera Exar, together with producer Sociedad Quimica y Minera de Chile, or SQM.

Despite the TSX-listed equity being caught in a sector-wide slump since the start of the year, having lost more than 36% since the start of the year, the stock had picked up 13.3% in the last week and on Tuesday alone gained another 7.72% to change hands at C$7.25 a share.