Noram Ventures (TSXV: NRM) intends to conduct a phase 5 drill program at its Clayton Valley, Nevada Zeus lithium property as per an announcement this morning by the company. The program follows the recently completed phase four program that significantly increased resource estimates for the property.
Latest drill results have provided Noram with estimates of 124 million tonnes at 1136 ppm lithium as Indicated Resources, and 77 million tonnes lithium at 1045 ppm lithium as Inferred Resources, for a total of 201 million tonnes at 1101 ppm lithium, based on a 900 ppm lithium cut-off. Full details of the revised and improved resource estimates can be found via Noram’s release earlier this month announcing the positive revision.
The latest drill program is to occur at 1440 meters, and is to consist of 12 drill holes, each at a depth of 120 meters. The program is intended to revise current figures to consist of measured and indicated resources, with the program measuring both infill and step-out drill collar locations. The program is also aiming to expand the deposit to the south and east of the current location.
Upgrading from inferred to that of measured and indicated would then enable the planning of a mine and evaluation of the economic viability of the project. Nearby projects, such as Lithium Americas Corp and Ioneer Ltd’s operations, have shown favourable results for the area that are encouraging for Noram’s management.
Additionally, a preliminary economic assessment completed on property owned by Cypress Development Corp directly adjacent to Noram’s property has shown favourable figures, with all in costs of production for that lithium deposit estimated at US$4 per kilogram of lithium carbonate produced. The current price for lithium carbonate is in the area of US$8.75/kilogram.
We are encouraged by the continued expansion of the lithium claystone resource at Zeus, now with 1.18 million tonnes LCE in-situ (900 ppm cut-off, Indicated and Inferred Resources). Phase 5 drilling is likely to further increase the resources. The data will be used for initial mine engineering plans, and the core will provide sufficient sampling of the deposit for initial chemical engineering studies to be incorporated into a Preliminary Economic Assessment report later in 2020. With our location immediately adjacent to Albemarle’s Silver Peak lithium operations in Clayton Valley, we are in an excellent position to move this project forward.
C. Tucker Barrie, President and CEO of Noram Ventures
Noram Ventures last traded at $0.15 on the TSX Venture.
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