TORONTO (miningweekly.com) – Lithium exploration and development company Lithium X Energy has secured the largest claims holdings in Nevada's prospective Clayton Valley and now holds 6 078 ha of land north and south of Albemarle's Silver Peak mine, North America's only lithium producer, the company announced on Tuesday.
The Western US state of Nevada was playing host to entrepreneurs and junior project developers staking land claims in a bid to get in on the hype created by Tesla Motors’ first $5-billion gigafactory under construction in the state.
The TSX-V-listed firm’s latest land acquisition entailed a 100% interest in the Clayton Valley South Expansion lithium (CVL) property, which comprised 471 federal placer mining claims, totalling about 3 861 ha and was located about 50 km south-west of Tonopah, Nevada, within the Clayton Valley.
In acquiring the property, Lithium X paid $350 000 in cash and issued four-million shares to the vendor. A finder's fee of 295 000 common shares of the company was also payable to a third party.
The property is strategically located among the Silver Peak lithium mine on the northern boundary; the Clayton Valley South project, operated by Pure Energy Minerals, to the east; and the Neptune property, owned by Nevada Sunrise Gold, to the west.
Lithium X planned to test several potential lithium-bearing aquifers on the property and believed that the geological structure of the sediment-filled deep basin underlying the claims was a target-rich environment.
Analysis of geological, geophysical and drill log data pointed to evidence of potential lithium-bearing aquifers. Within these sediments there were several known lithium-bearing aquifers, including the salt aquifer system, main ash aquifer, lower ash aquifer and the lower gravel aquifer. Faults within the basin created infiltration barriers that hindered the dilution of lithium brines from the influx of fresh water from the surrounding mountains.
The company stated that historic and present drilling programmes surrounding the CVL suggested potential for the discovery of lithium-bearing brines. Albemarle wells were less than 100 m from the property and current drilling by Pure Energy was estimated to be 250 m from the property.
"With this acquisition, Lithium X has established the dominant land position in the Clayton Valley, while we continue to build a first-class management team with extensive lithium experience," commented president and CEO Brian Paes-Braga.
The acquisition was expected to close by February 26 and was subject to certain conditions including regulatory approvals.
The company also on Tuesday announced the appointment of William Randall as its new VP of project development.