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Caeneus Minerals outlines lithium brine drilling in Nevada

Published: 13:00 05 May 2017 AEST

Nevada-road-and-mountain
Caeneus recently secured exploration funding

Caeneus Minerals (ASX:CAD) has rescheduled drilling, which is targeting its Nevada based lithium brine projects, to commence 22 May, 2017.

The first project to be drilled will be Scotty’s South, which will be followed by Lida Valley and Columbus.

The delay in commencement of drilling is due to the requirement for additional permitting by the State of Nevada and Nevada Bureau of Land Management.

On completion of bird surveys scheduled for 20 May 2017, a notice of intent to drill is to be lodged and the final trail construction to be completed.

Steven Elliot, managing director, commented: “Our understanding of the potential for brines and their host sediments at our projects has improved markedly through the last 12 months.”


U.S. lithium projects

Caeneus’ portfolio of lithium projects in the U.S. state of Nevada includes:

- Muddy Mountain (lithium clay);
- Lida Valley (lithium brine);
- Scotty’s South (lithium brine);
- Columbus Marsh (lithium brine); and
- New King (lithium clay).


Recent Nevada site visit

Elliot alongside chairman Keith Bowker recently flew to Nevada where they conducted an investor site visit as well as conducted meetings with the field teams.

While there, they toured the company’s brine projects and demonstrated Nevada’s unrivalled potential for lithium, showing Nevada as host of the only brine based producing lithium operation in North America.

Nevada is also now well known as being home to Tesla Inc’s (NASDAQ:TSLA) $5 billion lithium-ion battery Gigafactory, and the soon to be built Faraday Future $1 billion electric car plant.


The cost advantage of lithium brine

Lithium brine deposits are typically located in salt flats which are flat, arid, and barren areas making logistics simpler.

Brine is also a liquid which means that drilling to find it is less energy intensive and once it is found the continuity is more straightforward.

Lithium brine deposits are usually found close to the surface resulting in less metres required to be drilled and lower early stage exploration costs.

Once a deposit is discovered, advanced exploration and development can also be more economically efficient:

- Permitting is usually faster;
- Resource expansion requires fewer drilling metres;
- Environmental studies can be less intensive and time consuming; and
- Required capex can be substantially lower.


Funding secured

Caeneus recently raised $1.1 million through the placement of 440 million shares priced at $0.0025 each.

Shares were placed with professional and sophisticated investors and camewith a 1:2 attaching option exercisable at $0.003 expiring on 31 December 2020.

Funds raised will be directed towards Caeneus’s maiden drilling program at the Scotty’s South, Lida Valley and Columbus Marsh lithium brine projects located in Nevada.

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