Usha Resources Reports Highest Lithium Grades to-date in Second Core Hole of Drill Program at the Jackpot Lake Lithium Brine Project Company Confirms Presence of Higher-Grade Lithium in Shallow Soils Throughout Second Hole;
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Usha Resources Reports Highest Lithium Grades to-date in Second Core Hole of Drill
Program at the Jackpot Lake Lithium Brine Project
Company Confirms Presence of Higher-Grade Lithium in Shallow Soils Throughout Second Hole;
Identifies Significantly Thicker Zone of Higher-Porosity Sand-Conglomerate Zone at Basin Bottom
Overlain by Massive Interval of Evaporites
Vancouver, British Columbia / April 12, 2023 – Usha Resources Ltd. (“USHA” or the “Company”)
(TSXV: USHA) (OTCQB: USHAF) (FSE: JO0), a North American mineral acquisition and exploration
company focused on the development of drill-ready lithium and other battery and precious metal projects,
is pleased to provide an update on its on-going drill program at the Jackpot Lake Lithium Brine
Property (“Project”).
Highlights:
Lithium is present in drill hole JP22-02 at a grade of up to 820 ppm, with an average of 334 ppm
Li in thirty samples collected from shallow surface soils (<500 ft), confirming that the soils at the
Project are highly enriched in lithium. These results are over four times the reported historical
average and compare very favourably to the reported average of 100 ppm for the Esmeralda
Formation, one of the potential sources of the lithium enrichment for the brines present in Clayton
Valley which hosts Albemarle’s Silver Peak Lithium Brine Mine, the only producing lithium
operation in the United Statesi.
Similar stratigraphy has been encountered in JP22-02 as that in drill hole JP22-01, suggesting that
the favourable stratigraphy identified in drilling is present throughout the basin as the two holes are
2.75 km apart. Identifying these similarities, especially in the basal conglomerates and evaporites,
is a key finding that continues to support that Dry Lake, within which Jackpot is hosted, is a similar
geologic setting to that of Clayton Valley.
Significant evaporitic crystallization, indicative of a brine-forming environment, is present
throughout JP22-02 with a notable interval of 146 feet of massive evaporites identified from a depth
of 1,346 to 1,504 feet in addition to the interbedding, veining and inclusions found throughout the
sediments above. Their presence supports that the Dry Lake Basin is a brine forming environment
as crystallization of evaporites would not occur in a freshwater system.
A large zone of higher-porosity sand and conglomerate has been identified at the bottom of
JP22-02, with at least 273 feet of a potentially pumpable aquifer present into which fluids from the
zones above should drain. Per the Preliminary Economic Assessment (PEA) completed by Pure
Energy Minerals for their Clayton Valley project, their sand and conglomerate zone was identified
to contain a large volume of brine with superior grades ii, and so the Company is making the
identification of this zone throughout the basin a priority for its drill program.
Assay Results
Drill hole JP22-02 has been completed to a depth of 1,801 ft (core length). The Company is pleased to
report that this drill hole has returned the highest grades of lithium encountered in drilling and reported
historically to date on the Property, with shallow soils within the upper 500 feet averaging 334 ppm Li,
almost twice the historical reported average of 175 ppm, and a high of 820 ppm, almost four times the
historical average and 50% higher than the historical reported high of 550 ppm.
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The core assay results from JP22-02 demonstrates the potential for Jackpot Lake to host higher-grade
intervals at deeper depths within the basin and confirms that lithium-rich sediments are present in the upper
portion of the basin which could theoretically concentrate and enrich a brine at depths over time.
“These drill results continue to demonstrate and validate the immense potential we saw when we first
reviewed Jackpot Lake.” said Deepak Varshney, CEO of Usha Resources.
Mr. Varshney continued: “We have always looked to Clayton Valley as a reference for our own geological
model and the leaching of enriched lithium clays within a basin is one of the primary mechanisms by which
lithium is believed to have been introduced into the brine at Albemarle’s Silver Peak operation. Our reported
historical average of 175 ppm Li in the surficial soils illustrated the potential of our project as it was very
comparable to the reported average of 100 ppm for the Esmeralda Formation, one of the potential sources
of the lithium enrichment in Clayton Valley. These higher grades further confirm our belief that there is a
strong potential source for brine enrichment across the entire Jackpot Lake basin as well.”
Geological Summary
The Company is also pleased to announce that it has also encountered very favourable stratigraphy in the
second hole, with evaporitic crystallization, indicative of a brine-forming environment, present throughout
the core similar to the first hole as interbedding, veining and inclusions but also as a thick layer of massive
evaporites from 1,346 to 1,504 feet. Furthermore, the second hole has a thicker zone of the higher-porosity
clayey sand, sand and conglomerate, with at least 273 feet of this zone present in an interval that begins at
1,528 feet that extends to the bottom of the hole at 1,801 feet. The conglomerate encountered at 1,696 feet
and below grades from smaller to larger clast sized at depth and is supported with a sandy matrix, creating
a thick basal conglomerate sequence.
The identification of a larger sand-conglomerate zone within the second hole is a key finding as it
demonstrates that this zone, which should contain the greatest porosity within the basin aquifer, is present
in both drilled locations at sufficiently large intervals to serve as a potentially viable pumping zone for a
large operation and is further evidence the basal conglomerate will persist across the entire basin floor. Per
the Preliminary Economic Assessment (PEA) completed by Pure Energy Minerals for their Clayton Valley
project, their sand and conglomerate zone was identified to contain a large volume of brine with superior
grades, and so the Company is making the identification of this zone throughout the basin a priority for its
drill program.
“The core from the second hole was a significant part of our decision to exercise our 100% option at Jackpot
Lake prior to receiving assays.” said Deepak Varshney, CEO of Usha Resources. “The drilling to date has
provided strong support that the Jackpot Lake system is in a similar geologic setting to that of Clayton
Valley. Almost 150 feet of evaporites overlying several hundred feet of higher-porosity sand and
conglomerate shows that this area not only has the right conditions for the formation of enriched brines, but
that we also have a significant zone into which these fluids could drain and be pumped from. We are very
much looking forward to completing this hole and proceeding with sampling as we work towards what we
believe will be the next American lithium discovery.”
Drilling and Sampling Update
The Company also announces that, after reviewing the findings of the drill program to-date and discussion
with the drill contractors, the Company has elected to use a larger, more powerful rig to install a deeper
exploration well, instead of completing a shallower well installation at the current depth of 1,801 feet.
Usage of this new rig will allow for drilling to continue to a depth of 2,000 feet, thereby expanding on the
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273-foot interval of sand and conglomerate already identified in JP22-02 where the Company believes the
best potential brines may be present.
Furthermore, the Company is also pleased to announce that, as a gesture of goodwill, the drill contractors,
Harris Exploration Ltd., an Earth Drilling Co. Ltd. Company, has confirmed that they will also advance
JP22-01 to a depth of 2,000 feet using the larger rig at no cost to the Company, thereby potentially greatly
expanding on the 99-foot higher-porosity sand and conglomerate zone already identified in JP22-01.
Based on the conceptual basin model, JP22-1 is approximately 200 feet closer to the eastern basin edge
than JP22-2, which should result in a thicker basal conglomerate than JP22-2, so there should be another
170 feet of basal conglomerate at JP22-1 (JP22-1 was terminated at 1,728 feet). Because bedrock has not
been encountered in JP22-2, 170 feet of additional basal conglomerate in JP22-1 may be a conservative
estimate and this zone may extend beyond the maximum drilling depth of 2,000 feet.
The rig is anticipated to arrive within the next two weeks and the Company anticipates that both holes will
be completed to 2,000 feet and sampled within the first half of May.
Finally, the Company also wishes to advise that it has not yet received further assay results from the first
hole and that samples submitted to the analytical laboratory are still undergoing analysis.
Figure 1 - Core taken from 1734 to 1744 feet in JP22-2. Reaching this sand-conglomerate zone was a high priority for the program
as it should contain the greatest porosity within the basin aquifer and serve as a pumpable zone into which the fluids above can
drain. Per the Preliminary Economic Assessment (PEA) completed by Pure Energy Minerals for their Clayton Valley project, a
sand-conglomerate zone was identified in their project to contain a large volume of brine with superior grades of lithium.
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Figure 2 - Conceptual basin model illustrating the theoretical location of boreholes JP22-01 and JP22-02 with respect to the
deposition anticipated in a geologic setting as that of Clayton Valley. The stratigraphic column on the left, taken from Pure
Energy’s PEA, shows the stratigraphy of borehole CV-8, located in a similar position within the Clayton Valley basin. The general
stratigraphy of CV-8 consisted of lacustrine sediments (clays, silts) overlaying a zone of sand and conglomerate where superior
grades of lithium were identified which is similar to the stratigraphy observed in JP22-01 and JP 22-02. Figure adapted from
Coffey et al. 2021iii.
Jackpot Lake Lithium Brine Property
USHA’s Jackpot Lake Lithium Brine Project is located within Clark County, 35 kilometres northeast of
Las Vegas, Nevada, and is comprised of 442 optioned and staked mineral claims that total 8,714 acres
(approximately 35.3 km2).
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 continuously 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. Considering the
elevated lithium concentrations identified in historic soil samples, such events could theoretically
concentrate lithium as rainwater passes through these materials, developing enriched brines at depths.
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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.
Samples from the first two holes of its drilling program have identified lithium is present at a grades of up
to 820 ppm within shallow surface soils (<500 ft), comparing very favourably to the reported average of
100 ppm for the Esmeralda Formation, one of the potential sources of the lithium enrichment for the brines
present in Clayton Valley.
Modelling indicates that the Project target comprises the entirety of the Company’s core optioned claim
block (2,800 acres; 11.3 km 2) and is open in all directions for expansion. The target is shallow,
predominantly above bedrock depths of 600 metres, and is approximately 450 metres thick. The total basin
within which the target is situated is estimated to be approximately 10,900 acres of which the Company
now controls 8,714 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.
Qualified Person
The technical content of this news release has been reviewed and 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 company focused on the
development of quality battery and precious metal properties that are drill-ready with high-upside and
expansion potential. Based in Vancouver, BC, Usha’s portfolio of strategic properties provides target-rich
diversification and consist of Jackpot Lake, a lithium project in Nevada; White Willow, a lithium project
in Ontario; Nicobat, a nickel‑copper‑cobalt project in Ontario; and Lost Basin, a gold-copper project in
Arizona. Usha trades on the TSX Venture Exchange under the symbol USHA, the OTCQB Exchange under
the symbol USHAF and the Frankfurt Stock Exchange under the symbol JO0.
USHA RESOURCES LTD.
“Deepak V arshney” CEO and Director
For more information, please call Tyler Muir, Investor Relations, 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 information" under applicable Canadian securities
legislation. Such forward-looking information reflects 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. Readers are cautioned that such forward-looking information are neither
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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 available 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 expenditures, and may not result in the discovery of mineral
deposits that can be mined profitably. Furthermore, 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 future events could differ materially from those anticipated in such
statements.
i Monk, L. et al. 2011. Geochemistry of Lithium-rich brines in Clayton Valley, Nevada, USA. Society of Geology
Applied to Ore Deposits Bi-annual Meeting, Antofogasto, Chile.
ii Pure Energy Minerals, 2018. NI 43-101 Technical Report. Preliminary Economic Assessment (Rev. 1) of the Clayton
Valley Lithium Project. Esmeralda County, Nevada.
iii Coffey, D.M. et al. 2021. Lithium Storage and Release From Lacustrine Sediments: Implications for Lithium
Enrichment and Sustainability in Continental Brines. Geochemistry, Geophysics, Geosystems, 22,
e2021GC009916. https://doi.org/10.1029/2021GC009916.