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Noka Resources to acquire Lincoln project in Nevada
2016-04-21 14:30 ET - News Release
Mr. Nav Dhaliwal reports
NOKA ACQUIRES CLAYTON VALLEY PROJECT ADJACENT TO NEVADA'S LARGEST LITHIUM PRODUCER
Noka Resources Inc. has entered into an option agreement with arm's-length optionors to acquire a 100-per-cent interest in the Lincoln lithium project located in the Clayton Valley area of west-central Nevada.
Location and Tenure
The Lincoln Property consists of approximately 3500 acres located in northwest part of the prolific Clayton Valley. The Lincoln Property is situated near the northwest flank of Rockwood Lithium's Silver Peak mine, the only lithium producer in North America. This exciting new prospect lies adjacent to the west of Lithium X's north block. Exploration logistics are excellent with property access via a paved highway approximately one-half km from the property boundary.
Historic Work in Clayton Valley
In the 1970's, the United States Geological Services ("USGS") conducted a 7 hole drill program along the north end of the Clayton Valley in an effort to identify lithium bearing brines and volcanic sediments. All of the holes reported anomalous lithium with grades ranging from 310 ppm to 1700 ppm and as shallow as 100 feet (30 meters). The Lincoln Property lies within 500 meters of one of the seven USGS holes, one of the holes reports as high as 930 ppm lithium at a depth of 100 feet (30 meters). (Source: USGS Open-File Report 82-415, 1982)
Currently Rockwood Lithium extracts and processes lithium bearing brines. This mine has been supplying the lithium market since 1967. Other active companies in the Valley include Pure Energy, 9km south of Lincoln with a current NI 43-101 inferred resource of 816,000 tons. Also Lithium X has recently been approved for drilling on their north block, adjacent to the Lincoln Property. (Lithium X Press Release 03-23-2016)
Geologic Model of Clayton Valley Nevada
Located in the Basin and Range Province within western Nevada, the 15 km wide and 20 km long Clayton Valley is an internally drained, fault bounded and closed basin. In 1966, Foote Mineral began lithium brine production from the aquifers underlying the current Rockwood Lithium operation which is located immediately to the east of Noka's Lincoln Property. The Clayton Valley is an extremely active lithium exploration area.
There is a definite relationship between Clayton Valley sediment and brine lithium grades and the nearby presence of lithium-bearing volcanic "air fall" tuff units which occur repeatedly throughout the unconsolidated Clayton Valley sedimentary and volcaniclastic rocks. Theoretical and practical observations suggest a relatively simple geological model for use in exploration. Lithium bearing rhyolitic tuff units were leached and exposed over time in evaporative shallow desert lake conditions, enriched in lithium and buried. This process was repeated over long periods of time. The buried enriched layers are now being leached with their contained lithium being re-mobilized in present day salty aquifers. Six major aquifers have been mined in the vicinity of Noka's Lincoln Property, including the 10 to 30 foot (3 to 10 m) thick Main Ash Aquifer. Due to the proximity of Noka's Lincoln Property to the well explored adjacent Rockwood Lithium operation, all six acquifers are known or projected to exist below the entire extent of the Lincoln Property.
Next Steps
Subject to receipt of regulatory approval to the transaction, the Company anticipates an exploration program for the Lincoln Property to include a number of tasks that will help the Company better understand subsurface geology and structure. Drilling a number of holes to quantify lithium content of both the groundwater and the lithium-bearing clays are a high priority for this project. It is our opinion that this project has great potential, being near the historic USGS drilling and current mining operations.
President & CEO Statement
"The acquisition of the Lincoln Property represents a solid and exciting addition to our existing presence in the Nevada lithium play. Being so close to producing lithium acquifers will allow us to quickly move to a drill program without the need to perform geophysics or other targeting work, especially since we can project the anticipated depth of the acquifers with reasonable certainty. While we wait for drill permits, Noka will conduct surface sampling to compile a lithium grade database for the various rock types outlined by prior USGS drilling near the Lincoln Property. "
Option Terms
In order to earn a 100% interest in the Lincoln Property, the Company must issue a total of 4,000,000 common shares to the optionors upon acceptance of the transaction by the TSX Venture Exchange, pay a total of $200,000 to the optionors within six months of the date of option agreement, and incur $250,000 in exploration expenditures on the Lincoln Property within one year of the date of the option agreement.
Finder's fees may be payable in accordance with the transaction pursuant to the policies of the TSX Venture Exchange.
Financing
The Company also announces that it has arranged, subject to TSX Venture Exchange acceptance, a "part and parcel" non-brokered private placement of up to 5,000,000 units at price of $0.12 per unit for total gross proceeds of up to $600,000. Each unit will consist of one common share of the Company and one share purchase warrant. Each warrant shall be exercisable into one additional common share of the Company for a period of 24 months at a price of $0.24 per warrant share. The proposed private placement is integral to the option of the Lincoln Property.
Finders' fees may be payable in whole or in part on the placement pursuant to the policies of the TSX Venture Exchange.
The proceeds from placement will be used to pay acquisitions costs and finance exploration of the Lincoln Property as well as for general and administrative expenses.
The technical content of this news release has been reviewed and approved by Dr. Stewart A Jackson, PGeo, a Qualified Person pursuant to National Instrument 43-101, and independent from the Company.