Monger Gold (ASX: MMG) has announced it has staked additional claims to the south of its newly acquired Scotty lithium project in Nevada, United States, increasing the total project area by more than a third.
The 264 new claims cover 5,280 acres (21 square kilometres) over a potential southern extension of the adjoining Bonnie Claire lithium deposit, which the junior explorer said is one of North America’s largest undeveloped lithium resources.
As a result, the Scotty lithium project has expanded by 37% to 19,280 acres (78sq km).
Monger chairman Peretz Schapiro said the company is pleased to substantially expand next to Bonnie Claire, while also being 70km from Albemarle’s Clayton Valley mine, the only brine producing lithium mine in the US, and about 300km from Tesla’s Gigafactory.
“The paradigm shift to electric vehicles has started and continues apace with increase demand for metals such as copper and lithium clearly defined.”
“Through development of the Scotty lithium project, Monger Gold is striving to become a significant player in the lithium market,” he said.
Potential extension of Bonnie Claire lithium deposit
The new claims are located directly along strike from the Bonnie Claire lithium deposit, owned 50:50 by Canada-listed companies Iconic Minerals (TSXV: ICM) and Nevada Lithium Resources Inc (CSE: NVLH). Monger believes there is a “high probability” that this new area contains extensions of the mineralisation.
According to the company, the new claims cover the southern extension of a strong gravity “low”, which indicates a thick sequence of lithium-bearing sediments extend into the area. Resistivity “low” anomalies (conductors) are evident in historical magnetotelluric (MT) geophysics data around the area which could potentially reflect the presence of lithium-bearing brines. These anomalies have never been drill tested.
Monger added the Scotty lithium project to its portfolio in early June through the $2 million acquisition of American Consolidated Lithium.
A project-wide surface geochemistry sampling program announced last week is now underway. It is expected to assist in defining lithium-brine exploration targets for a maiden drilling campaign to commence in the second half of 2022.
Monger said maiden drilling will also commence in the second half of the year to test surface anomalies, extensions of the Bonnie Claire deposit and geophysical targets within the Scotty project.
“We are giving ourselves every chance to make a significant lithium discovery at Scotty in the near future,” Mr Schapiro said.