VANCOUVER (miningweekly.com) – TSX-V-listed explorer Nevada Sunrise and 50:50 joint venture (JV) partner Eureka Resources have formalised their relationship with regard to the Gemini lithium project with the signing of a definitive JV agreement.
Nevada Sunrise acquired the Gemini project, located in Nevada’s Lida Valley, in Esmeralda County, by claim staking in November and December 2015. It optioned a 50% interest to Eureka in January.
The company had also, in August, granted Advantage Lithium an option to earn a 50% interest in Gemini, as part of a transaction involving five Nevada lithium exploration properties. Upon Advantage exercising its earn-in option, Nevada Sunrise would relinquish its 50% interest in Gemini, and retain a 2% gross overriding royalty.
Under the agreement, Advantage gained the option to acquire the Nevada water right Permit 44 411, the only other water permit available in the overappropriated region.
The 2 000 ha Gemini lithium project comprises 247 placer mining claims hosting two deep, subbasins that have the potential for lithium-bearing brines, similar to the proven lithium brine deposits located in the Clayton Valley, where Albemarle’s Silver Peak lithium producing mine – the only current lithium producer in North America – is located.
Gemini is believed to have a similar geologic environment 40 km south-east of the Clayton Valley.