Blue Eagle Lithium, a lithium resource exploration and development company, announced that it has secured an agreement to expand its existing holdings in Railroad Valley, Nevada.
The agreement provides for the acquisition of an additional 1,000 acres contiguous to the Southwest portion of its current property bringing the Company’s total land package in Railroad Valley to 5,000 acres (~2,023 hectares).
Following a strategic review of its existing property portfolio, including its initial baseline soil-sampling program, completed National Instrument 43-101 report in late 2018 and most recently, announced results from its detailed surface soil and water sampling program, the Company believes that the additional claims will allow it to continue its current exploration program beyond its existing boundaries and increase the potential targets for a drilling program.
The agreement further enhances Blue Eagle’s position as a significant player in the lithium enriched Railroad Valley.
Blue Eagle CEO Rupert Ireland commented on the acquisition, “We’ve been looking to increase our acreage in Railroad valley from the moment we started receiving positive soil sample results and we have been fortunate to find prospective land adjacent to our existing footprint. The land package is a natural fit and extension to our current land position, both in terms of access and geological theories. The additional acreage will further entrench the Company within the exciting gravity low area of interest in Railroad Valley and represents a clear example of the growth potential that remains for our Company, particularly within this region in the state of Nevada.”
Railroad Valley is a closed, arid terminal basin bounded by faults and filled with porous young sediments and hosts a larger playa, larger catchment area and deeper basin fill than Clayton Valley, (host to Albemarle Corp’s Silver Peak Lithium Mine), which is the only lithium brine operation within the United States.
As highlighted in the Company’s previously reported National Instrument 43-101 report, extensive oil exploration and development has generated a large data set on characteristics of basin stratigraphy, depth to bedrock and fault accessible for analysis, which extends southwest to the Company’s property. While the depth of bedrock beneath the Railroad Valley property is unknown, the main basin infill sediments have been drilled and tested by oil exploration since 1954 with infill depths from 150 to 2,900m in an asymmetrical graben with a fault-bounded, deep, restricted basin. In combination, the Railroad Valley basin is a green-fields lithium target for potential brine aquifers where exploration can build on the dense existing oil field data, the experiences at Clayton Valley and other lithium-brine basins, including those in South America.
As part of this extra land agreement, the Company also holds an exclusive option to acquire an additional 520 acres contiguous and adjacent to the south of the 1,000 acres within this agreement. This option is valid for 30 business days from the date of the Closing of this agreement. If the option is exercised, the Company’s land holdings within Railroad Valley will total 5,520 acres. Upon the Company’s due diligence, the decision to exercise the option will be made and further announcements will follow as materially appropriate.
Source: Company Press Release