Auroch Completes Acquisition of the Nevada Lithium Project

Auroch Minerals Limited (ASX:AOU) (Auroch or the Company) is pleased to announce that it has completed the acquisition of an 80% interest in the Nevada Lithium Project (NLP) located in Nevada, USA (refer to the Company’s ASX announcement on the 20th April 2022 for further details).

Highlights

• Completion of strategic acquisition of an 80% interest in the Nevada Lithium Project
• Mining-friendly jurisdiction in the State of Nevada, close to other large lithium deposits, the Tesla Gigafactory near Reno, and major Californian ports
• Nevada Lithium Project consists of four prospect areas comprising ~65 km2 covering the same geology that is known to host other major lithium deposits in the region, including American Lithium Corporation’s (TSX.V: LI) (US OTC: LIACF) (Frankfurt: 5LA1) TLC Lithium Project
• Work programme planned, including a site visit in July and an initial drill campaign scheduled for next quarter

The NLP consists of four prospect areas – Traction, San Antone, Heller and Lone Mountain, comprising ~65 km2 of ground that is considered highly prospective for large sedimentary-hosted lithium deposits (Figures 1 – 2; 4 - 7).

The NLP is located close to the silver mining town of Tonopah in the mining-friendly counties of Nye and Esmeralda in the State of Nevada. The region is home to multiple large sedimentary-hosted lithium deposits including Ioneer Resources’ (ASX:INR) Rhyolite Ridge and American Lithium Corporation’s (TSX.V: LI) (US OTC: LIACF) (Frankfurt: 5LA1) TLC Lithium Project (Figure 1). Albemarle Corporation’s (NYSE:ALB) Silver Peak Lithium Mine is currently the only producing lithium mine in North America, and is approximately 45 km to the west of the NLP.

The NLP is also strategically located ~340 km southeast of the Tesla Gigafactory near Reno, with access to major Californian ports.

The NLP has had very limited lithium focused exploration to-date, despite covering the same lacustrine sedimentary formation that hosts other large lithium deposits in the region, including the TLC deposit. Surface soil sampling of the prospect areas has resulted in grades of up to 590ppm Li (Figure 4), whilst historical water bores drilled in and around the NLP areas have logged a similar sedimentary host rock formation over 73m thick (Figure 5). The areas of anomalous lithium at surface and thick horizons of the target host rock have significant potential for large-scale lithium mineralisation and will be the focus of the initial exploration and drill programmes in the coming months.

Auroch Managing Director Aidan Platel commented:

“We are extremely pleased to have completed the 80% acquisition of the Nevada Lithium Project in such a short amount of time. The NLP covers the same geological formation that hosts very large lithium deposits in the region, including the TLC Lithium Project nearby, and so we are very excited by the potential of the NLP to host significant lithium mineralisation in a stable pro-mining jurisdiction in Nevada, USA. We look forward to getting on the ground next month and commencing the initial drill programme as soon as possible!”

Auroch Executive Chairman Mike Edwards also commented:

“This is an exciting time for the Company. The completion of the 80% interest in the Nevada Lithium Project is a critical and defining next step for Auroch. The aim of this new strategy and direction is to extract maximum value for our shareholders from both the nickel and non-nickel assets in the Auroch portfolio. The Company is well funded, and the team is looking forward to commencing exploration in Nevada as well as continuing work on our advanced Western Australian nickel assets"

Figure 1 – Location of the Nevada Lithium Project (NLP) comprising the Traction, San Antone, Heller and Lone Mountain Prospects in relation to known large lithium deposits, the Tesla Gigafactory, and the mining town of Tonopah, Nevada, USA

Figure 2 – Location of the Nevada Lithium Project (NLP) in relation to known large lithium deposits and regional geology (SGMC 1:350k, US Geological Survey Aug 2017)

Nevada Lithium Project (NLP) – Geology and Mineralisation

The NLP comprises ~65 km2 across four prospect areas – Traction, San Antone, Heller and Lone Mountain (Figure 2). Each prospect covers large areas of mapped Siebert Formation, a lacustrine sedimentary rock unit that has formed in and around calderas (depressions formed by historic volcanic eruptions).

Lithium mineralisation is believed to occur as a result of the lithium-enriched brines or fluids that were directly related to the volcanic activity of the caldera. The lithium brines were absorbed by flat-lying ash-rich caldera lake sediments such as the Siebert Formation (Figure 3). Normal faulting then took place, lifting the Siebert Formation up above the water table, which effectively removed the brine, leaving behind the lithium-enriched clay layers.

The Siebert Formation is the host rock to several large known sedimentary lithium deposits in the region, in particular American Lithium Corporation’s (TSX.V: LI) (US OTC: LIACF) (Frankfurt: 5LA1) TLC Lithium Project.

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