Caeneus Minerals reviews lithium brine assets ahead of forecast lithium resurgence

Caeneus Minerals ASX CAD lithium Nevada brine assets
Caeneus Minerals will review its Nevada brine assets where “highly anomalous” lithium brine concentrations were previously identified.

With a lithium resurgence on the horizon Caeneus Minerals (ASX: CAD) will review its lithium brine projects in Nevada during the current quarter.

The company anticipates sustained lithium demand will bounce back along with the commodity’s price.

Commenting on the decision to review the assets, Caeneus chief executive officer Rob Mosig said they contain “intrinsic” value that was put on hold during the lithium slump.

“Whilst the flagship and focus for the company clearly remains the Mallina gold tenements immediately adjacent to the significant De Grey (ASX: DEG) gold discoveries, I believe the Nevada lithium brines provide an additional opportunity to achieve more success through careful additional exploration and development or other opportunities,” Mr Mosig added.

Nevada lithium brine assets

Caeneus’ lithium brine assets in Nevada comprise Columbus Marsh and Rhodes Marsh.

Columbus Marsh hosts a large mature saline basin surrounded by epithermal hot springs.

Exploration in 2016 at Columbus Marsh led to the discovery of “highly anomalous” lithium brine concentrations within a shallow aquifer.

The following year in November, Caeneus completed drilling at Columbus Marsh, which had encountered further lithium brines including an interval of 79.25m to 103.63m averaging at 80.78 milligrams per litre with a peak value of 95.9mg/l.

Over at the Rhodes Marsh project, which is 15km north of Columbus Marsh, Caeneus believes it has the potential to host similar lithium brines.

Caeneus believes Rhodes Marsh hosts many similarities to Columbus Marsh and the Clayton Valley basin.

Both projects are in the vicinity of “significant” lithium projects in the region including those owned by Ultra Lithium, American Lithium, Albemarle, Pure Energy and Nevada Sunrise.

Lithium resurgence

Lithium carbonate prices in China are at 14-month highs due to reduced supply of precursor raw materials.

Spectators are predicting a resurgence in the lithium sector with Chinese producers reported to have already sold all their output for January and February.

Lithium market analysts have been touting for some time that the world is heading towards severe lithium shortages as renewable energy and electric vehicle adoption accelerates.

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