Pure-play lithium company Surge Battery Metals (TSXV: NILI) announced Thursday it closed both the Wilkins Family and Y3-II agreements to secure control of over 25% of the mineral rights for the private lands within its flagship claystone project located in Elko County, Nevada.
The private lands are comprised of four parcels totalling 880 acres. The first agreement called for the company to acquire a 21.25% interest in the mineral rights underlying the private lands for $50,000 and issuance of a total of 1.25 million common shares.
The second agreement provided for the purchase of an additional 3.75% interest in the mineral rights and has now also closed with the issuance of a total of 300,000 shares.
The first round of drilling at the Nevada North project, completed in October 2022, identified a strongly mineralized zone of lithium bearing clays occupying a strike length of almost 1,620 meters.
Widths of the mineralized horizons are at least 400 meters, supported by highly anomalous soil values indicating potential for the clay horizons to be much greater in extent, the company said, adding that the potential for a significant lithium deposit can be illustrated by the average lithium content within all near surface clay zones intersected in 2022 drilling.
The 2023 drill program is designed to expand the known lithium-rich clay from the current 1,620 meters strike length to more than 3,500 meters and the known width of the mineralization to 950 meters from the previously drill-indicated 400 meters.
Initial assay results from the first hole of the 2023 season had a high of 8,070 parts per million (ppm) lithium with an average of 4,067 ppm lithium, using a 1,000 ppm cut-off.
Surge Battery Metals stock was up 1.03% by 3pm EDT in Toronto. The company has a C$76.4 million ($56.2m) capitalization.