VANCOUVER, BC, Sept. 20, 2021 /CNW/ -- Surge Battery Metals Inc.
(the "Company", "Optionee" or "Surge") (TSXV: NILI) (OTCQB: NILIF)
(FRA: DJ5C) is pleased to announce that it has entered into an
option agreement with Lithium Corporation (the "Optionor") (OTCQB:
LTUM) dated September 16, 2021 (the
"Agreement"), whereby the Company may earn an undivided 80%
interest, in the existing San Emidio Desert Lithium Project that
consists of 35 mineral claims (of which 31 are staked and in the
process of being formally recorded) comprising a total of 2800
acres located approximately 60 miles North East of Reno, Nevada, referred to as the "San Emidio
Lithium Property". The Agreement with Lithium Corporation is
an arms' length transaction and is subject to TSX Venture Exchange
("Exchange") approval.
"This Agreement significantly adds to our lithium exploration
portfolio in Nevada and we are
looking forward to working with Lithium Corporation to further
explore and develop this exciting Property." states Greg Reimer, Surge President and CEO.
The geologic setting combined with the presence of lithium in
both active geothermal fluids and surface
salts within the San Emidio Property match
characteristics of lithium brine and clay deposits at Clayton
Valley, Nevada and in South
America. Geothermal fluids adjoining the claims are known to
contain anomalous lithium values and a recently completed surface
silt sampling program have confirmed Li values in the area.
Although geological work has been undertaken for geothermal energy
production in the area, the lithium in brine and clay potential of
the playa has not been specifically studied. Initially, the
lithium target in this basin was highly conceptual, however, recent
exploration results are highly encouraging and warrant a detailed
exploration drilling for a Clayton Valley type brine and clay
deposit.
Pursuant to the terms of the Agreement, the Company may exercise
the Property option as follows:
Cash Payments and Share Issuances
Make the cash payments and share issuances to the Optionor in
the following manner:
(i) US$50,000 on signing the Agreement and issue
200,000 common shares on the Closing Date; and
(ii) US$70,000 and US$30,000 in common shares on or before the first
anniversary of the Effective Date; and
(iii)US$70,000 and US$30,000 in common shares on or before the
second anniversary of the Effective Date; and
(iv) US$70,000 and US$50,000 in
common shares on or before third anniversary of the Effective Date;
and
(v) US$70,000 and US$70,000 in common shares on or before the
fourth anniversary of the Effective Date; and
(vi) US$70,000 and US$90,000 in common shares on or before the fifth
anniversary of the Effective Date.
The shares issued under this Agreement shall be subject to
resale restrictions which are required to be imposed on the shares
of the Optionee issued to the Optionor hereunder, pursuant to
applicable securities laws, including National Instrument 45–102
and the rules and policies of the Exchange.
Expenditure and Work Commitment
Incur a minimum in Expenditures for exploration and development
work on the Property of US$1,000,000
as follows:
(i) US$100,000 of Expenditures to be incurred, or
caused to be incurred, by the Optionee on the Property on or before
the first anniversary of the Effective Date; and
(ii) a cumulative total of US$250,000 of Expenditures to be incurred, or
caused to be incurred, by the Optionee on the Property on or before
the second anniversary of the Effective Date; and
(iii)a cumulative total of US$450,000
of Expenditures to be incurred, or caused to be incurred, by the
Optionee on the Property on or before the third anniversary of the
Effective Date; and
(iv)a cumulative total of US$700,000
of Expenditures to be incurred, or caused to be incurred, by the
Optionee on the Property on or before the fourth anniversary of the
Effective Date; and
(v) a cumulative total of US$1,000,000 of Expenditures to be incurred, or
caused to be incurred, by the Optionee on the Property on or before
the fifth anniversary of the Effective Date.
Finder's fees will be paid on behalf of the transaction in
accordance with Exchange policies. Subject to Exchange
Approval, Black Prince Advisors Ltd. will be paid a Finder's Fee of
CDN$24,500, which fee is to be paid
by the issuance of 71,200 common shares of the Company.
About the San Emidio Lithium Property and its Exploration
History:
The San Emidio Lithium Property is located approximately 60
miles to the northeast of Reno,
Nevada, the site of Tesla's lithium ion battery
"Gigafactory" and is approximately 2800 acres in size.
Lithium Corporation first identified this prospect in 2009, and
reconnaissance sediment sampling in 2010, indicated that this
geothermally active valley and the associated playa here could
possibly be prospective for economic lithium-in-brine
mineralization. This was followed up by more sampling in early
2011, which again displayed anomalous results, and the decision was
made mid-year to then go ahead & stake a block of 1600 acre
block of claims. Around this time Lithium Corporation conducted a
preliminary sub-surface brine sampling program on the playa - and
ended up with several anomalous samples (up to 80 mg/L Li).
In the fall of 2011, Lithium Corporation completed a gravity
survey on the Property - outlining the geometry of the basement.
With this information, the site was permitted, in anticipation of a
direct push drill program.
The initial probing program was commenced in early February 2012, keying in on an interpreted
linear feature (fault) that might be roughly coincident with the
gravel road that travels NW-SE from Empire Farms to the US
Geothermal plant, and appears to be coincident with the western
margin (bounding fault) of the paleo basin seen at depth in the
gravity data. This hypothesized structure is supported by
observations/results from the earlier near-surface brine sampling
as there is a bit of a linear expression in the brines & there
appeared to be some sort of break b/t the east & west sides of
the road - as there was no brine down to 25' subsurface on the
west, while brines are available typically within two meters
subsurface on the east side of the road. The direct push program
appeared to indicate that a structure coincident with the current
day topo low (which runs NE/SW) and may be a currently active
extensional feature is responsible for the Li enriched fluids here.
Samples here were moderately anomalous with lithium concentrations
in the low 20'smg/L at depths of up to 80 feet. The information
from this program led to a realignment of the claim block in
mid-2012 – claims were dropped to the south, with more being added
to the north. Another direct push probing campaign was
undertaken later in calendar 2012, which confirmed the previous
data interpretation, with the best value being in the order of 23
mg/L Li. The mineralization was determined to be spatially related
to the NE/SW feature & contouring of the probe data gives the
impression that it occurs in the vicinity of a junction of the
earlier hypothesized NW/SE trending structure and this north
easterly fault or possibly set of faults.
Keeping the above in mind, and knowing that lithium
concentrations in geothermal fluids or brines may increase at depth
(as in nearby Clayton Valley, Nevada) Lithium Corporation previously
submitted a permit to drill three reverse circulation drill holes -
designed to test the direct push brine anomaly. The permit was
received in 2014, however the program was not undertaken before
Lithium Corporation joint ventured the Property to American Lithium
in early 2016. American Lithium did not perform any work at
San Emidio and eventually the Property was returned to the
Company.
Mr. Greg Reimer comments,"The
lithium-in-brine anomaly is roughly 1 1/2 mile long & 1/2 mile
wide, and is presently still open-ended. We look forward to
continuing the exploration work here to determine what we believe
to be a significant lithium deposit and Property."
Qualified Person: The technical contents of this
news release has been reviewed and approved by Alan Morris CPG,
Elko, Nevada
About Surge Battery Metals Inc.
surgebatterymetals.com
The Company is a Canadian-based mineral exploration company
active in the exploration for nickel-iron alloy and Copper in
British Columbia and lithium in
Nevada whose primary listing is on
the TSX Venture Exchange. The Company's maintains a focus on
exploration for high value battery metals required for the electric
vehicle (EV) market.
Nevada Lithium Claims
The Company owns a 100% interest in 38 mineral claims located in
Nevada. The Northern Nevada
Lithium Project is located in the Granite Range about 34 line- km
southeast of Jackpot, Nevada,
about 73 line-km north-northeast of Wells, Nevada. The target is a Thacker Pass or Clayton
Valley type lithium clay deposit in volcanic tuff and
tuffaceous sediments of the Jarbidge Rhyolite package. The project
area was first identified in public domain stream sediment
geochemical data with follow up sediment sampling and geologic
reconnaissance.
Caledonia Project, Vancouver Island, BC
The Company has entered into a Property Option Agreement to
acquire a 100% interest in 7 mineral claims known as the
Caledonia, Cascade and Bluebell,
subject to a NSR between 1-2%. Located in the Nanaimo Mining
District of northern Vancouver Island. The claims are 7 km
north-west of BHP's past producing Island Copper mine. During its
prime operating period the Island Copper mine was Canada's third-largest copper producer. The
Caledonia, Cascade and Bluebell
claims area lies within a 50-kilometer-long copper belt northwest
of the Island Copper mine.
British Columbia Nickel Project
Hard Nickel 4 and Nickel 100 Claims
The Company has entered into an Option Agreement with Nickel
Rock Resources to acquire an 80% interest in 6 mineral claims in
the Mount Sidney Williams area (Hard Nickel 4) covering 1863
hectares immediately south of and adjacent to the Decar Project and
the Mitchell Range area (Nickel 100) covering 8659 hectares,
located in Northern British
Columbia. Three of the claims are subject to 2% NSR,
including the Hard Nickel 4 claim and the two southernmost claims
of the Nickel 100 claims. The acquisition is subject to final
Exchange approval.
On Behalf of the Board of Directors
"Greg Reimer"
Greg Reimer, President &
CEO
604-428-5690
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release. This news release may contain
forward–looking statements which include, but are not limited to,
comments that involve future events and conditions, which are
subject to various risks and uncertainties. Except for statements
of historical facts, comments that address resource potential,
upcoming work programs, geological interpretations, receipt and
security of mineral property titles, availability of funds, and
others are forward–looking. Forward–looking statements are not
guaranteeing future performance and actual results may vary
materially from those statements. General business conditions are
factors that could cause actual results to vary materially from
forward–looking statements.
Surge Battery Metals Inc.
1220 – 789 West Pender Street
Vancouver, BC, Canada V6C 1H2
604- 428-5690
www.surgebatterymetals.com
info@surgebatterymetals.com
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SOURCE Surge Battery Metals Inc.
