Iconic Minerals (TSXV:ICM, OTCMKTS:BVTEF, FRA:YQGB) has found a new way to recover lithium. Lithium hosted in sediments to be exact. The company received very encouraging results from its initial tests taken from samples from its Bonnie Claire project in Nevada, headlined by recovery rates of up to 98%. Normally, the lithium in Clayton Valley is hosted in clay, which means the lithium is stranded; there is simply no economic way of extracting it. Lithium in sediments was almost no better until now. In three samples taken from different elevations from Bonnie Claire, the fine-grained sediments showed leach recoveries of 98%, 93% and 89% lithium, leaching with dilute acid. More importantly, the lithium in the brine leachate appears to be lithium chloride, which is how lithium occurs in Clayton Valley brines. This means after leaching, Iconics lithium can be processed conventionally. This discovery has the potential to completely change how the market currently views Iconic. The company has 23,100 acres of contiguous placer claims and if further tests verify this recovery method, Iconic will have an enormous resource. Iconic can thank its President and CEO, Richard Kern, for this revelation. If not for his comprehensive background in heap leaching, this approach would never have been considered. Next steps? Iconic is currently working with McClelland Laboratories and has already started agitated leach testing some drill cuttings. This means using different leaching agents, including water, dilute hydrochloric and dilute sulphuric acid to determine the leachability of lithium from the sediments. Results from this are expected in the next couple of weeks. After determining the optimal agent, a column leach test is next on the docket. This test will take longer, most likely 60 to 90 days, but is needed to determine permeability. The good news is, Iconic plans on drilling concurrently. We expect the company to drill two more holes to get to resource, and this number will be substantial. As we mentioned in our first write-up, the companys valuation is back-stopped by great gold assets in Nevada, including the 100%-owned Hercules gold-silver property with a historic resource of about 900,000 ounces of gold and 12.5 million ounces of silver; and the 50%-owned New Pass gold-silver property, which holds 260,000 ounces of gold and 2.5 million ounces of silver, all 43-101 compliant. Iconics last gold asset, the 50%-owned Squaw Creek, located near Battle Mountain and contains strongly anomalous gold mineralization. It is definitely worth noting that Iconics JV partner in New Pass and Squaw Creek is McEwen Mining, a C$1.5 billion, 150,000-ounce producer. While Iconic has incredible lithium assets, we still believe the market is attributing zero value to the gold assets. Iconic Minerals only has a market cap of C$7.6 million, and this company is on the verge of something big. We strongly suggest taking a deeper look and calling management to learn more about their assets and team.