Nevada has the only currently producing lithium mine in the United States. The mine, located near Silver Peak, Nevada, has produced from lithium brines since 1967. Production costs are low relative to production from hard rock. The rise in lithium prices and discovery highly anomalous lithium values at surface by Great Basin Oil has led to the option of the Salt Wells project by AJN.
Using the characteristics of lithium brines worldwide: 1. arid climate; 2. closed basin containing a playa; 3. tectonically driven subsidence; 4. Mechanism for freeing lithium ions from simple compounds; 5. Suitable lithium source rocks; 6. One or more adequate aquifers; 7. Sufficient time to concentrate a brine; and possibly 8. Geothermal heat to improve the leaching of lithium from sediments, several Nevada basins have been studied. Salt Wells has all of the above characteristics.
Several samples of salt evaporites were collected from the playa (dry lake bed) by AJN’s team in late May 2017, with highly encouraging results. The best sample from the survey, taken close to an inferred intersection of two roughly perpendicular faults in the northwest area of the property returned a value of 212.0 ppm Li. 5 out of 10 total samples returned anomalous Li values exceeding 57.0 ppm Li.
AJN has an option to acquire 100% of the Salt Wells property from Great Basin Oil LLC by spending US$140,000 over 2 years. The property will be subject to a 4.5% Net Smelter Return payable to Great Basin and or it’s designated assignees, 1.5% of which AJN shall have the right to buy back from Great Basin within 90 Days of the Property going into production for USD$500,000, and an additional 1.5% of which AJN shall have the right to buy back from the Vendor within 180 days of the Property going into production for USD$1,250,000.