Exploring Lithium and Potash in the Paradox Basin
This profile is part of a paid investor education campaign.*
New Tech Lithium Corp (CSE:NTM) is a resource company focused on the exploration of greentech, battery metals and materials. New Tech has significant lithium, potash and bromine assets in Paradox Basin, Utah. New Tech also has cobalt and vanadium properties in Nevada and has cobalt exploration projects in Missouri.
Parados Basin, Utah
The Paradox Basin is an area that straddles the southern portion of the Utah-Colorado border. Rich in multi-commodity brines that have the potential to host lithium, bromine, potash and potassium, the region is one of two in the world that hosts lithium and bromine together. Unlike most of the lithium-rich regions in South America, the Paradox basin is also unique as it sits in a historic sea bed as opposed to much smaller lake beds.
New Tech has been working within the Paradox basin for the last eight years, looking to establish a potash exploration and development program on their property. In this time, they released an NI 43-101 compliant exploration target of 500 million to 1 billion tonnes of potash.
During their potash exploration activities, the company discovered the presence of subsurface lithium brines, and this led them to acquire federal and state lithium mining claims and licenses on their existing property. This makes New Tech uniquely positioned as one of the only lithium explorers in the Paradox Basin that also has the potential to recover and develop potash in brines.
In addition to their lithium and potash holdings, New Tech has acquired cobalt properties in Nevada and Missouri and a gold property in Newfoundland, Canada. Both of the cobalt properties are located in or near historic mining districts that host past-producing mines. The company is moving forward with preliminary exploration projects on both properties to verify historical data. Meanwhile, the Newfoundland gold project is in proximity to the Sokoman Moosehead gold project, which saw an intersection of 11.9-meter that contained 44.96 g/t gold and includes a 1.35-meter intercept with approximately 50 sites of visible gold which assayed 385.85 g/t gold in their 2018 drill program.
The New Tech management team is one with vast experience in the industry and expertise in geology, law and the financial aspects of developing resource projects towards production. Highly invested in the company, management and insiders hold significant share positions.
- First-mover status in the highly-prospective Paradox basin that straddles the Utah and Colorado border
- Uniquely diversified portfolio in lithium and potash exploration in Paradox basin which hosts multi-commodity brines containing lithium, potassium and bromine
- NI 43-101 exploration target potential of 500 million to 1 billion tonnes of potash in Utah property
- Significant land position for lithium brine exploration: 13,200 acres in Utah.
- Large area on property designated by BLM for location of processing-recovery facilities
- Option agreement on two cobalt projects in Nevada and Missouri and acquisition of gold project in Newfoundland, Canada
- Exploration is planned for spring 2019.
The Paradox basin is a large Pennsylvanian-age marine basin that sits on the southeastern corner of Utah and the southwestern corner of Colorado. An area known for oil and gas drilling, the basin is one of two regions in the world that holds both lithium and bromine together.
The basin also includes a thick series of marine evaporite deposits making up the Paradox Formation, which hosts 29 salt-evaporite sequences separated by clastic beds, which can function as brine aquifer host beds.
The brines within the Paradox basin are multi-commodity brines with potentially economic concentrations of high-grade lithium, bromine, potassium and boron. Samples taken from various zones within the basin include 66 ppm to 500 ppm lithium, 18,800 ppm to 41,958 ppm potassium and 1,150 ppm to 6,100 ppm bromine.
New Tech has taken advantage of its first mover status within this region to gather extensive knowledge on the area through the purchase of a significant database made up of historic oil and gas well logs, production data and seismic survey data. The company is exploring both lithium-brine and potash projects with the goal of making them production ready.
As New Tech progressed with its potash exploration initiatives in the Paradox basin, the company noticed the presence of enriched lithium concentrations within subsurface brines. This led to the acquisition of federal placer lithium claims and state leases within their Utah property and across the state border, on the Colorado side of the Paradox basin.
Utah lithium property
Within the confines of New Tech’s existing potash prospecting permit application, the company has acquired federal placer lithium claims and Utah State lithium leases adding up to a total 13,200 acres of land dedicated to lithium-brine exploration. The property is located in Utah’s Grand County, under 30 kilometers west of Moab. The project is supported by easy road access, a nearby railway and highway, a power line running alongside the property and access to water from being on the border of the Green River. Ten Mile also includes two historic oil and gas wells—the federal 1-26 and Shell Quintana—both of which documented brine occurrences.
New Tech’s Paradox Basin potash project is located less than 20 kilometers northwest of Intrepid Potash’s evaporation pond mining operation. It includes 27,000 acres of land under potash prospecting permit applications, within which the company has acquired their federal mining claims and Utah state licenses. The property also hosts an NI 43-101 compliant exploration target of 500 million to 1 billion tonnes of potash with an average grade of between 19 and 29 percent eKCl. This was outlined in the NI 43-101 technical report drafted by the company’s potash consultant, Agapito Associates Inc.
Due to the increased demand for cobalt, New Tech has been expanding its portfolio to include cobalt properties in Nevada and Missouri.
Fredericktown cobalt project
In June 2018, New Tech signed an option agreement to acquire four federal prospecting permit applications, which cover a total of 9,406 acres located adjacent to and immediately south of the Fredericktown lead-copper-nickel-cobalt sub-district of the historic Old Lead Belt in Madison County, Southeast Missouri. New Tech paid $30,000 and is required to issue 1.6 million shares over a period of five years. The vendor retains a two percent NSR on the property, but New Tech can buy half of the NSR for $1 million at any time during the term of the option and up to 10 years thereafter.
The recently acquired property is located approximately two miles outside of the Fredericktown mining district boundaries, but displays structural attributes that can lead to the discovery of new deposits. The area also hosts 15 small, historic lead-zinc-copper-nickel-cobalt and copper-cobalt past producers, three of these past producers are included in the land acquired by New Tech. Overall, the area is considered to be underexplored and the focus of the region has been on the large historic deposits of lead discovered to the north.
The nearby sub-district of Fredericktown covers approximately 80 square-miles and consists of approximately 30 historic mines, which have been consolidated into larger mine complexes. The sub-district hosts two lead-copper-nickel-cobalt past producers, one copper-cobalt past producer and several cobalt prospecting sites. The sub-district’s largest mine is Mine LaMotte, which has reportedly produced 15 million tonnes of ore at an average grade of 2.7 percent lead, 0.69 percent copper, 0.29 percent nickel and 0.23 percent cobalt. Additionally, the Madison Mine has a historical unmined resource comprised of drilling from the 1980s and 1990s that reportedly contained 6.6 million tons at a grade of 0.31 percent cobalt, 0.47 percent nickel and 0.74 percent copper.
At the request of the US Bureau of Land Management, New Tech has submitted an exploration plan and their prospecting permit application. The exploration plan was developed using data from modern geophysical methodology and stream sediment geochemistry. New Tech Lithium expects to have its exploration plan approved in the near future.
Buena Vista Hills cobalt project
In March 2018, New Tech signed a letter of intent (LOI) with an arm’s length private Nevada-based company to lease the mineral rights for the 640-acre Buena Vista Hill cobalt prospect in Pershing County, Nevada. As part of the agreement, New Tech is required to spend a minimum of $700,000 in work over three years and will have to pay a minimum royalty of $50,000 per annum after the fourth year of the lease. The owner also holds a one percent NSR, but New Tech has an option of purchasing half of the royalty for $500,000.
The Buena Vista cobalt project encompasses the past-producing open-pit Segerstrom-Heizer iron ore mine, which reportedly produced approximately 1.2 million tonnes of iron ore between 1943 and 1996. After acquiring the property in March, New Tech completed a due diligence sampling program returned cobalt values that ranged between 0.04 percent to 0.113 percent cobalt from rock chip samples taken from the northeast margins of the open-pit.
The results from the due diligence program supported historic reported cut sample results of 0.009 percent cobalt and 1.2 percent cobalt samples collected from the DeMatties data base, which averaged 0.18 percent cobalt according to DeMatties’ unpublished pre-print data. Additionally, Zephyr Mining Ltd. drilled a 580-foot vertical reverse circulation drill hole approximately 330-feet northeast of the Segerstrom-Heizer open-pit mine, which returned a 40-foot interval with an average grade of 0.12 percent cobalt oxide occurring within a 60-foot interval od 0.10 percent cobalt oxide and a 90-foot interval of 0.09 percent cobalt oxide.
Currently, New Tech is working towards the completion of their Phase I exploration program. The program consists of a re-interpretation and review of a historic airborne magnetic survey, a detailed geologic and geochemical survey and a 5,700-foot drill program.
Newfoundland Gold Project
In August 2018, New Tech optioned a large property package of approximately 4.2 kilometers southeast of Sokoman Iron Corp.’s (TSXV:SIC) Moosehead high-grade gold project in Newfoundland, Canada. The property is approximately four kilometers long by 1.5 kilometers wide and may be located on trend with Sokoman’s gold-mineralized mesothermal orogenic quartz vein system.
The property will have access to the towns of Grand Falls and Windsor which are located 20 kilometers to the south and the deep-water port of Botwood is 17 kilometers north of the property. Additionally, the property is easily accessible by the Trans-Canada Highway, which runs over the northern end of Sokoman’s property, and Route 360 is approximately two kilometers northwest of previous drilling sites.
Sokoman is currently conducting its 2018 work program. So far, the program has produced a 11.9-meter intersection that contained 44.96 g/t gold and includes a 1.35-meter intercept with approximately 50 sites of visible gold which assayed 385.85 g/t gold.
Rudy de Jonge—CEO and Director
Rudy de Jonge has over 26 years’ experience with publicly trading mining exploration companies. His experience in investor relations, managing IPOs, financing, corporate development, team building, and project acquisitions is extensive.
He has many years of experience in project acquisitions and management in international markets. Including the countries of Peru, Indonesia, Tanzania, Brazil and projects in Canada and the United States. He has been instrumental in the creation and development of many public companies in the past. His experience includes being a founding director for Evolving Gold Ltd, founding promoter of Confederation Minerals Ltd, director for Great Quest Metals Ltd and founding promoter of Continent Resources Inc. (currently Copper One Inc.).
Jonathan George, BSc – President and Director
As a geologist and entrepreneur, Jonathan George has been active in all aspects of mineral exploration, development and resource capital markets for over 35 years with projects throughout the world.
He has held senior positions with numerous publicly traded resource companies over the years, most notably as the co-founder, president and chief executive officer of Creston Moly Corp., where he oversaw the advancement of Mexico’s largest molybdenum deposit to the prefeasibility stage in under two years, resulting in a valuation at the time of $560-million. Creston merged with Mercator Minerals in a transaction valued at $178-million.
As the president and chief executive officer of ESO Uranium Corp., he was instrumental in that company, assembling and exploring one of the largest and most prospective land packages in the Athabasca basin, where ultimately Alpha Minerals (ESO’s successor) and Fission Energy made the rich Patterson Lake South uranium discovery.
John A. Greig, MSc, PGeo—Director
John A. Greig has played a key role in a number of successful exploration/development projects since 1969, both in Canada and internationally. He is experienced in the management and financing of public companies. He was a founder of Sutton Resources Ltd, Cumberland Resources Ltd and EuroZinc Mining Corp, serving as director and chairman for these companies as well. Greig has also served on the boards of Winspear Resources Ltd, Dynamic Oil and Gas Inc. and Shellbridge Oil and Gas Inc.
He holds a BS Hons degree in Geology from McGill University, Montreal, and an MSc degree in Geology from the University of Alberta, Edmonton. He has a Professional Geoscientist designation with the Association of Professional Engineers and Geoscientists of British Columbia. He is also a life member of the Association of Professional Engineers, Geologists and Geophysicists of Alberta.
Lawrence Dick, PhD, PGeo—Director
Dr. Lawrence Dick is a professional geologist with over 35 years of experience in base and precious metals exploration worldwide. He spent over 20 years exploring for copper and gold throughout South America and was credited with major finds at Collahuasi (Chile); Golden Bear (B.C.) and the San Jose silver deposit in Mexico. After a 17-year stint with Chevron Minerals Ltd, where he was Director of Exploration in Latin America, he consulted for SRK and his own consultancy before co-founding General Minerals Corporation (now Sprott Resource Corporation) and then co-founding and acting as President and Chief Executive Officer of Evolving Gold Corporation.
He currently serves as Chief Geologist and Manager of the Resource Group for Baron Global Financial Canada Ltd, a Hong Kong based merchant bank dedicated to the identification, acquisition, exploration and marketing of mining projects worldwide. He also serves on a number of boards, including Timmins Gold Corp, Copper one Inc., United Mining Group Inc. and Confederation Minerals Ltd.
Kenneth R. Holmes, LLB—Director
Kenneth R. Holmes began his legal career in 1982 and spent 10 years in a predominantly corporate and securities practice, which also included a full complement of commercial, real estate, tax technology and intellectual property matters and often had international issues and elements. This resulted in exposure to and an understanding of a broad range of businesses and transactions, including natural resource (mining, oil and gas) companies.
Since 1991, he has been acting as in-house counsel and senior management of, or consulting to, companies, public and private, involved in businesses ranging from natural resource exploration, franchising, television production and gaming. He also serves on the board of Confederation Minerals Ltd.
Kent Ausburn, PhD, PGeo—Director
Dr. Kent Ausburn is a senior geologist with over 30 years of experience in the mineral exploration/mining industry, with three years’ experience as a consulting hydrogeologist, leading to a focus on property acquisition with equity positions in both private and public companies. He has extensive field and management experience in the minerals business in a wide variety of mineral deposits, rock types and geologic terrains.
He has worked and managed exploration programs in several countries including the Western USA, Alaska, Mexico, Colombia, SW Mainland China and Malaysia and has also consulted for several environmental consulting companies in the highly competitive and regulatory-complex Los Angeles-Orange County areas of Southern California. He also serves on the board of Confederation Minerals Ltd.
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