Red Mountain Mining stakes new Nevada project near Surge Battery Metals’ lithium discovery

Red Mountain Mining (ASX: RMX) is preparing to hit the ground running at a strategic new project it has acquired near Surge Battery Metals’ (TSX-V: NILI) high-grade lithium discovery in Nevada, USA.

The company is already preparing for a comprehensive sampling program to be conducted over the 199 new claims it successfully staked in north-eastern Nevada.

The company’s large new land-holding is located in the granite range, approximately 34km south-east of the township of Jackpot in Elko County.

Depending on logistics and manpower availability, Red Mountain is planning to be on the ground at the new Magante project by the end of this month, with fast-tracked assay results to be received by mid to late November.

Northern Nevada lithium hunt accelerating

The northern Nevada region where Magante is located is probably the hottest current lithium destination in the US.

Just 8km south-west of Magante is Surge Battery Metals’ recent high-grade Nevada North Lithium Project (NNLP).

Surge confirmed a major lithium discovery at Nevada North in October 2022 when it intersected a wide mineralised zone of high-grade lithium bearing clays with hits of between 1,790 parts per million to a high of 4,500 parts per million lithium.

More recently drilling by Surge returned multiple zones of high lithium values ranging up to 8,070 parts per million as the company has accelerated its drilling work to successfully extend the known strike length of the deposit out to 3,500 metres.

Thacker Pass similarities

Notably, Surge has identified a number of similarities at its project to the nearby $6.2 billion Thacker Pass mine which is currently under construction.

That Lithium America owned project is renowned as the largest known measured and indicated lithium resource in the US.

Red Mountain has now joined a significant lithium land rush, with Surge also snapping up land near the Nevada North discovery.

Targeting Thacker Pass type lithium clays

The company will initially target a Thacker Pass or Clayton Valley type lithium clay deposit in volcanic tuff and tuffaceous sediments of the Jarbidge rhyolite package.

Any commercial lithium discovery at Magante is likely to be extremely valuable as the US races to catch up in the global battery metals race.

Many of the world’s largest electric vehicle manufacturers are now located in the US and are currently searching the globe for lithium resources to fuel their vehicles batteries, so a lithium find in the neighbourhood will be highly valuable.

Nevada, with its growing lithium riches is proving to be particularly attractive with Tesla set to pour $5.6 billion into two manufacturing sites in the state, and General Motors making a major investment in the Thacker Pass mine.

Well placed in Nevada

Earlier this month the company received Nevada Bureau of Land Management permit approval for a phase II drilling program at the company’s 100% owned Mustang lithium project.

Nevada-based drilling company, Alloy Drilling, has been engaged to undertake an 11 hole program targeting shallow lithium bearing clay horizons at the Mustang discovery.

In late September, Red Mountain obtained excellent lithium metallurgical recoveries of up to 88% lithium from Mustang.

The preliminary metallurgical test work on several core samples from Mustang followed a successful maiden drilling campaign at Mustang in July where Red Mountain intersected thick high-grade lithium claystone in 8 out of 10 drill holes, with 7 holes intersecting high-grade lithium from or near surface.