Rainmaker Resources (CVE:RIR) shares soared by 22% on Thursday after the company said its first exploration target technical report for the Sarcobatus Flat lithium project in Nevada indicated very positive exploration potential exists on the property, with high lithium content and a geologic setting similar to that of nearby producing Lithium brine deposits.
The report concluded that the property has the exploration potential to host lithium brine resources in the range of 113,500 to 384,000 short tons of lithium carbonate.
The report added that in the low range lithium carbonate was in the region of 227mln pounds and in the high range 768mln.
“Sarcobatus Flat is an early stage exploration project seeking Lithium brine deposits within a closed playa basin in the Basin and Range Geologic Province of Nevada. The geologic model for the Project follows the US Geological Survey Preliminary Deposit Model for Lithium Brines. The geologic setting of the Project is similar to that of producing Lithium brine deposits in the Clayton Valley approximately 45 air miles north of the Project,” said report author Doug Beahm.
Additional consideration was given to published results on a property immediately to the east of the Rainmaker property.
“This milestone marks Rainmaker’s first technical report, and we are very excited by the results of this study, which clearly indicates both the quality of the asset and the potential for significant lithium brine,” Chris M. Healey, P. Geo, President and CEO of Rainmaker reported. “The next steps in the development of the asset would include completion of the recommended geophysical surveys, which will enable us to subsequently launch an optimized drill program, culminating with a PEA.”
The full recommendation for exploration and development of Sarcobatus Flat includes 6 phases, culminating in a Preliminary Economic Assessment (PEA). The report recommends that the Company initially carry out two geophysical surveys, gravity followed by CSAMT (controlled source audio-frequency magnetotellurics). The expected cost for these 2 phases is estimated at $125,000.
This would be followed by phase 3, an initial drilling program in order to determine the presence or absence of lithium-rich brines, expected to cost approximately $600,000. Subsequently, phases 4 and 5 would include conceptual engineering, reservoir analysis, and a follow-on drill program. The estimated cost for all of the above recommendations, inclusive of a Mineral Resource Estimation and PEA, is noted at $2,375,000.
Sarcobatus Flat is located approximately 70 km southeast of Clayton Valley – home to the only producing lithium mine in the United States. According to a recent US Geological Survey, “Lithium supply security has become a top priority for technology companies in the United States and Asia.” This area of Nevada has seen a rapid rise in exploration success. Access to the Sarcobatus Flat property is ideal as the project lies directly adjacent to a major US highway. Easy access to this flat and arid property means exploration costs are expected to be low and environmental impact will be minimal. The lithium content of soils and vegetation in the Sarcobatus Flat property, as reported by the Company (see Rainmaker release August 4, 2016) compare favourably with samples from Clayton Valley.
Rainmaker shares were up 22.2% at C$0.11 on Thursday.
Story by ProactiveInvestors