Usha Resources Acquires Drill-Ready Lithium Project in Nevada
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News Release
Usha Resources Acquires Drill-Ready Lithium Project in Nevada
Vancouver, British Columbia / March 31, 2022 – Usha Resources L td. (“USHA” or the “Company”)
(TSXV: USHA) (OTCQB: USHAF) is pleased to announce that it has entered into a mineral prope rty
option agreement (the “ Option Agreement ” or “ Transaction”) with Ares Strategic Mining Inc. (the
“Vendor”) of Vancouver, British Columbia, whereby the Company has been granted the exclusive option
to acquire a 100% interest in 140 mineral claims located in Jac kpot Lake, Clark County, Nevada (the
“Property”).
The Property is located within Clark County, 35 kilometres nort heast of Las Vegas, Nevada, and is
comprised of 140 mineral claims that total 2,800 acres. The project is exploring a “playa” which appears to
be within a closed basin that may contain potentially lithium-r ich brines. The geologic model is similar to
that of Albemarle’s Silver Peak N evada Lithium Mine which has o perated continuously since 1966, and
Iconic Mineral’s Bonnie Claire Project, which recently released a Preliminary Economic Assessment report
(PEA) that indicates 40-year mine with an after-tax NPV8% of 1.5 billion, where sediments from lithium-rich
surrounding source rocks accumula te and fill the deposit leadin g to a potential concentration of lithium
brine due to successive evaporation and concentration events.
Figure 1 - Left, location of Jackpot Lake. Right, aerial image of the "playa".
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The project is considered to be “drill-ready” based on the following work which has successfully delineated
a 5 x 2 kilometre anomaly within a closed basin that suggests the presence of a highly concentrated brine:
129 core samples collected by the USGS with an average lithium value of 175 ppm with a high of
550 ppm and spectrographic and at omic-absorption analyses of 13 5 stream sediment samples
confirming the potential for lithium mineral deposits.
Gravitational surveying which h as identified a closed basin, cr itical for ensuring brines remain
within the basin without dilution from external water sources.
Geophysical modelling based upon gravitational and controlled s ource audio
magnetotellurics/magnetotellurics (CSAMT/MT) surveys has provid ed evidence of highly
concentrated brines which are relatively near the surface. The CSAMT survey results of the Jackpot
Lake Project demonstrate a large consistent body of very low re sistivity – consistent with highly
concentrated brine behavior – throughout the property, predominantly above bedrock depths of 625
meters.
The CSAMT Survey and report was conducted and prepared by Hasbr ouck Geophysics, who has
extensive experience of both surveying and data processing for brine-bearing basin environments
across the southwestern U.S.
Figure 2- Left, gravitational surveying outlined the footprint of the Jackpot lithium brine anomaly. Right, CSMAT survey slices
showing a cross-section of the anomaly illustrating the highly enriched brines throughout the property in red.
Based on the above, the Company intends on completing an aggres sive exploration program by drilling
both shallow and deep holes to test the targets outlined by the CSAMT Survey at possible higher
concentration brine zones with the goal of completing a 43-101 resource estimate by Q4 of 2022.
Deepak Varshney, CEO of Usha Resources, stated, " We are thrilled to add Jackpot Lake to our growing
portfolio of “green” projects and thank Ares for partnering with us to move this project forward. Our goal
is to identify high-quality projects that are near or drill-ready with high-upside that can be achieved
through the completion of relatively inexpensive work programs. Lithium brine deposits have a significant
cost advantage over lithium clay deposits in that lithium mineralization is much less difficult and much less
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expensive to process. They can also be explored through smaller drilling programs that can result in the
Company identifying resource estimates much more economically. The addition of Jackpot means that 2022
will be an extremely active period for USHA with three planned drill programs giving our shareholders a
number of potential catalysts across our various projects.”
James Walker, CEO of Ares Strategic Mining, stated, " We are pleased to have USHA as a partner for
Jackpot. Our goal was to find a well-structured and c apitalized company that could move the project
forward and look forward to supporting USHA as shareholders and strategic partners.”
The Transaction
Under the terms of the Transaction, USHA will be able to acquir e a 100% interest in the Property in
exchange for the following consideration:
$75,000 payable within five days from receiving approval from t he TSX Venture Exchange (the
“Exchange”).
$500,000 payable in common shares (the “Shares”) of the Company within five days from the date
of Exchange approval, to be issued at a deemed value at the gre ater of the 10-day VWAP or
Discounted Market Price;
$225,000 payable through a combination of cash or Shares of the Company (at the discretion of the
Company), up to a maximum of 1,500,000 Shares, on the six-month anniversary date, to be issued
at a deemed value at the greater of the 10-day VWAP or Discounted Market Price; and
$225,000 payable through a combination of cash or Shares of the Company (at the discretion of the
Company), up to a maximum of 1,500,000 Shares, on the twelve-mo nth anniversary date, to be
issued at a deemed value at the greater of the 10-day VWAP or Discounted Market Price.
Additionally, the Company will be required to complete no less than $1,000,000 worth of Expenditures on
the Claims within two years unless the Option has been exercised in full.
The Vendor will return a 1% Gross Overriding Royalty (the “ GORR”), subject to a buyback provision by
the Company, whereby the Company may acquire, at any time, one-half of the GORR for $1,000,000.
The Option Agreement and the transactions contemplated therein, including the issuance of the Shares, is
subject to the approval of the Exchange. All securities issued in connection with the Transaction will be
subject to a four-month-and-one-day statutory hold period.
Qualified Person
The technical content of this news release has been reviewed an d approved by Mr. Helgi Sigurgeirson,
P.Geo., a qualified person as defined by National Instrument 43 -101 Standards of Disclosure for Mineral
Projects (“NI 43-101”).
About Usha Resources Ltd.
Usha Resources Ltd. is a Canadian mineral acquisition and exploration company based in Vancouver, BC,
Canada. Usha is exploring for commercially exploitable mineral deposits and is currently focused on
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deposits located in Northwest Ontario, Canada and the Lost Basin Gold Mining District in Mohave County,
Arizona, U.S.A. Usha increases shareholder value through the ac quisition and exploration of quality
precious and base metal properties and the application of advan ced state-of-the-art exploration methods.
Usha's portfolio of strategic properties provides diversification and mitigates investment risk.
We seek Safe Harbor.
USHA RESOURCES LTD.
“Deepak Varshney” CEO and Director
For more information, please phon e James Berard, Investor Relat ions, 778-228-2314, email
[email protected], or visit www.usharesources.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of
the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-looking statements:
This news release may include "forward-looking in formation" under applicable Canadian securities
legislation. Such forward-looking information re flects management's current beliefs and are based on a
number of estimates and/or assumptions made by and information currently available to the Company that,
while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors that
may cause the actual results and future events to differ materially from those expressed or implied by such
forward-looking information. Read ers are cautioned that such forwar d-looking information are neither
promises nor guarantees and are subject to known and unknown risks and uncertainties including, but not
limited to, general business, economic, competitive, political and social uncertainties, uncertain and
volatile equity and capital markets, lack of availabl e capital, actual results of exploration activities,
environmental risks, future prices of base and other metals, operating risks, accidents, labour issues, delays
in obtaining governmental approvals and permits, and other risks in the mining industry.
The Company is presently an exploration stage company . Exploration is highly speculative in nature,
involves many risks, requires substantial expenditu res, and may not result in the discovery of mineral
deposits that can be mined profitably. Furthermo re, the Company currently has no reserves on any of its
properties. As a result, there can be no assurance that such forward-looking statements will prove to be
accurate, and actual results and fu ture events could differ materially from those anticipated in such
statements.