Red Mountain Mining (ASX: RMX) has submitted a drill permit application to the Nevada Bureau of Land Management for exploration at its wholly-owned Lithic lithium project.
The company has also engaged local contractor Alloy Drilling to commence Phase 1 drilling once the application has been approved.
Red Mountain’s geological confidence in Lithic is based on 10 recent high-grade surface samples from the western part of the project area which returned lithium values over 1000 parts per million.
This work also identified numerous targets which will be drill tested as part of the Phase 1 campaign.
It will comprise 11 initial holes, each drilled to a maximum 100 metres depth, with a view to specifically targeting lithium-bearing clay horizons.
Project location
The Lithic project is located on the on the southern flank of the Big Smoky Valley, 20 kilometres north of Century Lithium’s Clayton Valley project and 18km north of Albemarle’s Silver Peak brine recovery project.
The project comprises 115 claims across 9.61 square kilometres of a generally-flat alluvial outwash plane with exposed fines-dominant sediments beneath lithic tuff caps.
The outcrops are finely laminated mudstone beds and volcanic tuff and ash layers.
High-grade sampling results
Earlier this month, Red Mountain reported new high-grade results from reconnaissance lithium surface sampling at Lithic.
An additional 29 samples were collected from areas of claystone outcrop in the western parts of the mineral claim, returning lithium assay values up to 1541 parts per million.
Ten of the samples returned grades over 1000ppm lithium, which are considered highly anomalous given the high mobility of lithium in the weathered surficial environment.
Share placement
Exploration at Lithic and the neighbouring Mustang project is being funded by an $850,000 share placement completed in July at a price of $0.04 per share in a single tranche.
Commitments were received from professional and sophisticated investors and existing major shareholders, who also received one attaching option for every two placement shares exercisable at $0.08 each and expiring three years from the date of issue.
This month, Red Mountain announced it had staked an additional 88 mining claims at Mustang.
