Cadence updates on Macarthur’s Stonewall Lithium Project

Cadence Minerals has reported that Macarthur Minerals, in which it owns a 16.5% shareholding, has announced the commencement of its second soil sampling program at its Stonewall Lithium Project located in Lida Valley, Nevada.

Soil Sampling Program:

A shallow auger drilling program was conducted as part of due diligence in October 2016 where all nine shallow auger drill holes reported lithium, with grades up to 145.5 parts per million (“ppm”) lithium (“Li”) from near surface sediment, confirming that lithium is present in the Lida Valley.

Macarthur has commenced an extensive sampling program across the full extent of the placer claims of the Stonewall Project to provide Macarthur a property wide view of lithium distribution contained in the basin fill sediments. This sampling will also allow for a partial indication of the lithium content of the deeper sediments. At present, the exact depth and composition of the sediments in the basin are unknown. Macarthur’s geological team expects sediments to be at least 92 meters (300 feet) deep, most likely considerably deeper. A stock watering well located approximately 500 meters (a quarter mile) to the south of the claim block was drilled to a depth of approximately 92 meters (300 feet).

Once the property wide soil sampling program is completed, Macarthur will define areas of interest to be further explored through the use of geophysical methods. A detailed gravity survey may be conducted over areas of interest to determine the depth to a potential brine aquifer. The integration of soil assays with a geophysical interpretation will allow drill sites to be selected for detailed subsurface investigation of the project.

It is expected, that potential aquifers similar in composition and thickness to the upper and lower ash aquifers in the nearby Clayton Valley will be encountered at depth. The ash aquifers in the Clayton Valley were deposited by continental scale volcanic eruptions from calderas located 150 kilometers to the West (90 miles) and 790 kilometers North West (475 miles) of the Stonewall Project area. Ash fall from these volcanoes was deposited in the nearby Clayton Valley 52 kilometers to the North West (31 miles) and most likely also in the basins of the Lida Valley, where the Stonewall Project is located. The ash aquifers are both a host for and a possible source for lithium brines in the Clayton Valley.

Stonewall Project:

The Stonewall Project covers an area of approximately 5,460 acres (22.1 square kilometers) and the majority of a playa in Nevada’s Lida Valley Basin, a nearby and geologically similar basin to the Clayton Valley Basin, which hosts the United States’ only producing lithium mine.

The Stonewall Project is strategically located in the Nevada lithium supply hub, 306 kilometers (191 miles) southeast of Tesla’s new Gigafactory, which has a planned production capacity of 35 gigawatt-hours per year by 2020.

The Stonewall Project is located in an intermontane basin and is surrounded by tertiary volcanic rhyolitic rock units, which are anomalously high in lithium. These rhyolitic units are thought to act as a potential source rock for lithium in the Clayton Valley brines. The potential lithium source rock includes flows and tuffs that likely extend below the alluvial cover.

The Stonewall Project is located in the mining friendly Nye and Esmeralda Counties of Nevada and is serviced by excellent infrastructure with access to power, water, labour and is bisected by the Veterans Memorial Highway Number 95. The regional climate also favours natural and inexpensive evaporation for brine concentration and allows year-round work.

At 1:48pm: (LON:KDNC) Cadence Minerals Plc Ord 0.01p share price was -0.01p at 0.52p

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