Usha Resources Identifies Evaporite Crystals as Drilling at the Jackpot Lake Lithium Brine Project Now Fully Underway Company Confirms Favourable Crystalized Field Samples, Gravel and Sand Zones at First Hole
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Usha Resources Identifies Evaporite Crystals as Drilling at the Jackpot Lake Lithium
Brine Project Now Fully Underway
Company Confirms Favourable Crystalized Field Samples, Gravel and Sand Zones at First Hole
Vancouver, British Columbia / December 08, 2022 – Usha Resources Ltd. ( “ U S H A ” o r t h e
“Company”) (TSXV: USHA) (OTCQB: USHAF) (FSE: JO0) , a North American mineral acquisition
and exploration company focused on the development of drill-ready battery and precious metal projects, is
pleased to announce that drilling is successfully underway at i ts Jackpot Lake Lithium Brine
Property (“Project”). The drill is now at the 250 metre level and its exploratio n team has encountered
multiple zones of evaporite crystals as interbeds, veining, and inclusions and sandy and gravel zones at
depth. The presence of evaporite crystals supports the presence of a brine forming environment as
crystallization of evaporites would not occur in a freshwater s ystem, while the sandy and gravel intervals
are zones of high porosity that are targets for pumping tests for future resource evaluation.
Based on the evidence gathered during drilling and evaluation o f the Jackpot Lake system, the Company
believes that accumulation of eroded materials from of the surr ounding mountain ranges and repeated
evaporation events have continued over a geologic time scale in this closed basin system, which is a primary
mechanism of brine concentration. Considering the elevated lith ium concentrations identified in historic
soil samples, such events could theoretically concentrate lithi um as rainwater passes through these
materials, developing enriched brines at depths. The information obtained through the exploration program
to-date indicates that the basin setting and accumulation of mi nerals is similar to the geologic setting for
Albemarle’s Silver Peak Nevada Lithium Mine, the only producing lithium mine in North America, where
sediments from lithium-rich surrounding source rocks have accumulated and filled the deposit leading to a
concentration of lithium brine due to successive evaporation and concentration events.
“The significance of evidence supporting the geologic setting c oupled with the geological similarities and
notable proximity to the sole domestic producer of lithium in t he United States bodes well for USHA’s
future potential – both near and long-term,” said Deepak Varshn ey, CEO of Usha Resources. “While the
exploration team will remain dia led into completing the current drill campaign and collecting fluid and
geological samples for lab testing, I’m also considering our de velopment path options, including potential
expansion plans as well as DLE technology partner considerations. The fact that the Biden Administration’s
critical mineral requirements will quickly come into effect approximately one year from now is not lost on
me – 50% of battery components will be manufactured or assembled in North America starting in 2024 and
increasing to 100% by the end of 2028. With the demand for lith ium resources accelerating and no capital
constraints holding us back, we will drill smartly, test expeditiously, and play to win.”
A video update from the Company is available at this link.
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Figure 1 - Sediment collected from core hole JP1 at USHA’s Jackpot Lithium Brine Project. Sediments at and near the surface
are inundated with small crystals and occasional white banding, supporting the basin setting and accumulation of minerals that
is similar to the model for Albemarle’s Silver Peak Nevada Lithium Mine. A closed basin system will experience periods of
accumulation that result in salt crystal formation, and the continued occurrence of crystals throughout the upper 200 metres
indicate a long geologic period of successive accumulation and concentration events.
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Figure 2 – Drilling well underway at USHA's Jackpot Lake Lithium Brine Project.
Jackpot Lake Lithium Brine Property
USHA’s Jackpot Lake Lithium Brin e Property is located within Cl ark County, 35 kilometres northeast of
Las Vegas, Nevada, and is comprised of 140 mineral claims that total 2,800 acres (approximately 11.3 km2).
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The Project’s geologic setting is similar to that of Albemarle’s Silver Peak Nevada Lithium Mine, the only
producing lithium mine in North America, which has operated con tinuously since 1966, where sediments
from lithium-rich surrounding source rocks accumulate and fill the deposit leading to a potential
concentration of lithium brine due to successive evaporation and concentration events.
The Company has permitted 2,700 metres over six holes and has commenced a maiden drill program with
the goal of defining a 43-101 resource. The Project target was identified based on geophysical studies and
129 core samples collected by the USGS with an average lithium value of 175 ppm with a high of 550 ppm.
The present average grade for Albemarle’s project is approximately 121 ppm.
Modelling indicates that the Project target comprises the entir ety of the Company’s claim block (2,800
acres; 11.3 km 2) and is open in all directions for expansion. The target is sh allow, predominantly above
bedrock depths of 625 meters, and is approximately 450 metres t hick. The total basin within which the
target is situated is estimated to be approximately 10,900 acres.
The Project’s Qualified Professional (QP) is Michael Rosko, a professional geologist with over 30 years of
experience, with extensive experience with world-class lithium brine projects including Tier 1 projects such
as Galaxy's Sal de Vida Deposit, Millennial Lithium's Pasto Grandes Deposit, and Lithium America Corp's
Cauchari-Olaroz Deposit.
Figure 3 – 3D model of Usha’s Jackpot Lake interpreted lithium br ine target. The interpreted geop hysical target with borehole
locations overlain on the local topography produced using Maptek Vulcan. The surrounding formations of the Muddy Mountains
are theorized to be the source of lithium present in the area. The shell shown in yellow comprises geophysical results indicati ng
resistivities of <5ohm metres.
The following historical work has been completed that suggests the presence of a highly concentrated brine
with the potential to contain lithium:
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 lith ium mineral deposits. The pres ent average grade for Albemarle’s
project is approximately 121 ppm.
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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.
Figure 3 – Topographic map of the Jackpot Lake Lithium Brine Pr oject with MT survey results o verlain. Resistivities of
<2.7 ohm-metres are interpreted to be potentially higher concentration brines and between 2.7 and 5.0 ohm-metres to be potentially
moderate concentration brines.
Qualified Person
The technical content of this news release has been reviewed an d approved by Mr. Seth Cude, P.G., CPG.
RM, M.Sc., 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 North American mineral acquisition and exploration compan y focused on the
development of quality battery and precious metal properties th at are drill-ready with high-upside and
expansion potential. Based in Vancouver, BC, Usha’s portfolio o f strategic properties provides target-rich
diversification and consist of Jackpot Lake, a lithium project in Nevada; Nicobat, a nickel‑copper‑cobalt
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project in Ontario; and Lost Basin, a gold-copper project in Ar izona. Usha trades on the TSX Venture
Exchange under the symbol USHA, the OTCQB Exchange under the sy mbol USHAF and the Frankfurt
Stock Exchange under the symbol JO0.
USHA RESOURCES LTD.
“Deepak Varshney” CEO and Director
For more information, please call Tyler Muir, Investor Relation s, at 1-888-772-2452, 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.