VANCOUVER, BC / ACCESSWIRE / January 20, 2022 / Surge Battery Metals Inc. (the “Company” or “Surge”) (TSXV: NILI)(OTC PINK: NILIF)(FRA: DJ5C) is pleased to announce that it has entered into a letter of intent dated January 11, 2022 (the “Agreement”) to acquire an 80% undivided interest in 16 lithium mining claims comprising 640 acres and located in the desert of San Emidio, Nevada (the “Transaction”). These lithium exploration claims, referred to as the “Galt Claim Group,” adjoin the Company’s existing lithium claims in the San Emidio Desert. If this stake is successfully acquired by the Company, it will add significantly to Surge’s lithium assets in the region.
This Agreement is subject to a standstill clause and an additional due diligence period by both parties ending on January 31, 2022 followed by the signing of a Definitive Agreement by February 28, 2022, to be approved by the Sellers (Paul Lechler and John Vandesand) and Board of Directors of the Company.
Terms of the operation:
The proposed consideration for the 80% undivided interest in the Galt group of claims is as follows:
CA$20,000 payable upon closing of the transaction;
1,000,000 restricted shares of the Company to be issued upon closing of the transaction, which shares will vest and be released as follows: 25% released upon closing of the transaction, 25% released each three-month period thereafter;
4,000,000 warrants at an exercise price of CA$0.30 per share, with a term of five years and vesting on the same schedule as the shares in b) above; and
CA$10,000 each year on the anniversary date of the closing of the transaction for five years.
The transaction will be subject to the approval of the TSX Venture Exchange. All securities issued under the Transaction are subject to a hold period of four months and one day in accordance with Canadian securities laws.
Past Mineral Exploration Activities on the Galt Group of Claims
Recent mineral exploration on the Galt group of claims includes 51 playa sediment samples collected for chemical analysis at ALS Geochemistry in Vancouver, British Columbia. Results from the aqua regia leaching of the samples show 68 – 852 ppm Lithium (average 365 ppm), 5.3 – 201 ppm Cesium (average 72 ppm) and 35 – 377 ppm Rubidium (average 180 ppm). Results from two 7-foot-deep auger holes show lithium, cesium, and rubidium concentrations in the range of 143.5 to 773 ppm Li, 56.8 to 102.5 ppm Cs, and 155 at 272 Rb.
Mr. Greg Reimer, President and CEO of Surge, comments “The San Emidio Desert holds great potential for lithium exploration due to the geothermal activity in the area. The Company intends to determine the lithium brine and lithium clay potential for all of its properties in the San Emidio Desert Adding the Galt Dealership Group to our holdings in the area will add significantly to our overall lithium assets, and we look forward to the conclusion of the review of these lithium claims by our team of accomplished geologists and Mr. Alan Morris, acting as QP. Alan is an experienced lithium exploration geologist and is designing a program to explore the whole lithium claims for Surge shareholders.
The San Emidio Desert Area and Summary of Previous Work Completed
Mr. Alan Morris, CPG states “The geological setting combined with the presence of lithium in active geothermal fluids and surficial salts within the San Emidio property matches the characteristics of the lithium clay and brine deposits at Clayton Valley. , Nevada and South America.There is considerable geological, geophysical and geochemical work has been done on the eastern margin of the playa here for geothermal power, but only preliminary work has been done farther west on the playa proper to fully assess the lithium in brine, and/or lithium clay potential of the area.
Prior to staking the property in 2011, the seller of the north block of the San Emido property, Lithium Corporation, carried out preliminary geological and geochemical studies on the area. The original geochemical work included both lithium and lithium-associated pathfinder elements in brine and sediment samples. These early campaigns showed that lithium mineralization is present locally in the sediments, often at concentrations of up to several hundred parts per million (ppm), which is consistent with that observed near the brine mine of Clayton Valley lithium currently in production from Albemarle and Lithium Corporation. Prospecting for lithium in Fish Lake Valley brine. Although limited near-surface brine sampling was done at this time, several anomalous lithium samples were recovered. The strongest mineralized sample being around 80 milligrams per liter (mg/L) of lithium. These anomalous samples appeared to be aligned in a NW/SE orientation, which may indicate that there may be some structural control (fault) present. All were near the loosely defined paleobasinal basement, as is the case in the Clayton Valley. In order to map the subsurface in more detail, a moderate resolution geophysical gravity survey was then undertaken to better define and understand the subsurface geological conditions.
The gravity survey was successful in delineating the basin depression and elucidating the location and orientation of some of the limiting faults that gave rise to the subterranean basin feature. Armed with this information, a permit application was made to allow a number of additional shallow targets to be probed. The initial drilling program was initiated in early February 2012, capturing an interpreted linear feature (fault) that may roughly coincide with the gravel road that travels NW-SE from Empire Farms to the US Geothermal Plant. Information from this program led to a realignment of the claims bloc in mid-2012 with a focus on the northern claims blocs.
Qualified Person: The technical content of this press release has been reviewed and approved by Alan Morris CPG, Elko, Nevada
About Surge Battery Metals Inc. surgebatterymetals.com
The Company is a Canada-based mining exploration company active in the exploration of nickel-iron and copper alloys in British Columbia and lithium in Nevada whose primary listing is on the TSX Venture Exchange. The company continues to focus on exploring the high-value battery metals needed for the electric vehicle (EV) market.
Nevada lithium claims
The Company holds a 100% interest in 95 mining claims located in Elko County, Nevada. The Northern Nevada Lithium Project is located in the Granite Range approximately 34 line km southeast of Jackpot, Nevada, approximately 73 line km north-northeast of Wells, Nevada. The target is a Thacker Pass or Clayton Valley-type lithium clay deposit in the volcanic tuff and tuffaceous sediments of the Jarbidge Rhyolite package. The Project area was first identified in public domain stream sediment geochemical data with follow-up sediment sampling and geological reconnaissance.
The Company has entered into an ownership option agreement to acquire an 80% undivided interest in the San Emidio Desert Lithium Project, subject to a 2% NSR, located 60 miles northeast of Reno , Nevada, of Lithium Corporation (LTUM). The San Emidio Desert Lithium Project comprises 60 mining claims totaling 4,800 acres and is located in the San Emidio Desert.
Nickel Projects, Northern British Columbia
The Company has entered into an ownership option agreement to acquire an 80% undivided interest in certain mining claims from Nickel Rock Resources Inc.
The Surge Nickel project consists of two groups of non-contiguous mining claims comprising 6 mining claims in the Mount Sidney Williams area (HN4) covering 1863 hectares immediately to the south and adjacent to the Decar project and the Mitchell Range area (N100) covering 8659 hectares , located in northern British Columbia. Three of the claims are subject to 2% NSR, including the (HN4 claim and the two southernmost claims of the N100 claims).
The exploration-stage project is located in the Lac Trembleur area of central British Columbia, partially adjacent to FPX Nickel Corp.’s Decar Nickel project, which is an advanced project targeting awaruite, an alloy mineral of nickel-iron, hosted by serpentinized ultramafic intrusive rocks of the Trembleur ultramafic unit.
Caledonia Project, Vancouver Island, BC
The Company has entered into a property option agreement to acquire a 100% interest in 7 mining concessions, including the Caledonia, Cascade and Bluebell concessions, subject to an NSR between 1 and 2%. Located in the Nanaimo Mining Division in northern Vancouver Island. The claims are located 7 km northwest of BHP’s former Island Copper mine. During its peak operating period, the Island Copper mine was the third largest copper producer in Canada. The concession area of the Caledonia project lies in a 50 kilometer long copper belt northwest of the Island Copper mine.
On behalf of the Board of Directors
Greg Reimer, President and CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This press release may contain forward-looking statements that include, but are not limited to, comments that involve future events and conditions, which are subject to various risks and uncertainties. Except for statements of historical fact, comments that address resource potential, upcoming work programs, geological interpretations, receipt and security of mining title, availability of funds and the like are forward-looking. Forward-looking statements are not guarantees of future performance, and actual results may differ materially from such statements. General trading conditions are factors that could cause actual results to differ materially from the forward-looking statements.
THE SOURCE: Surge Battery Metals Inc.
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