The Edwards Creek Property (“ECV” or the “Property”) represents a greenfields lithium brine exploration target located in Edwards Creek Valley, Nevada (“Edwards Creek Valley” or the “Valley”). Edwards Creek Valley is slightly smaller in size and has similar geologic potential to host lithium brines as Clayton Valley, Nevada. Clayton Valley currently hosts the only operating lithium brine mine in North America, the Silver Peak Mine, owned by Albemarle Corporation (NYSE: ALB).
Ameriwest has defined a large shallow and several deeper lithium brine exploration targets in Edwards Creek Valley through gravity and magnetotelluric (“MT”) geophysics data collection and analysis. The exploration targets have similar geologic potential to the Silver Peak Mine, subject to exploration success. The Company plans to move forward with permitting one or more initial discovery drill holes at ECV.
No mineral resources or reserves have yet been defined on the property. Similarities of the ECV Property to Clayton Valley or the Silver Peak Mine do not guarantee exploration success at ECV.
The Property is located 120 miles east of Reno, Nevada. It encompasses 1,243 contiguous placer claims for a total of about 22,200 acres.
On January 31, 2023, Ameriwest announced it had entered into an Option Agreement with Nova Lithium Corp. (CSE:NVLI) whereby Nova has the option to earn a 51% undivided interest in ECV by completing C$500,000 in qualifying exploration expenditures over a 24-month period, of which C$200,000 mush be completed within 12 months. The Option Agreement includes a 1 miles area of influence from the present property boundary and Nova is required to maintain the claims in good standing and pay all fees and taxes necessary to do so. Upon exercise of the Option, a Joint Venture will form.
(1) Source: State of Nevada Division of Water Resources Hydrographic Regions and Basins(2) Estimated from Google Earth(3) The presence of operating mines, mineral resources and reserves, or exploration activities on properties in the vicinity of Ameriwest’s property does not guarantee exploration success on Ameriwest’s properties or that mineral resources or mining reserves will be delineated.(4) Source: Lithium in Sediments and Rocks in Nevada, U.S Department of Interior Geological Survey, Open File Report 76-567, 1976, Bohannon and Meter
At Edwards Creek Valley a major volcanic center is located on the west side of the Valley in the Clan Alpine Range, and a probable caldera is present on the southeast side of the Property in the New Pass Range. In addition, Edwards Creek Valley is within a structural volcano-tectonic trough. These silicic volcanic features are considered a positive sign for successful lithium exploration.
There is direct geothermal input into the basin from a hot spring located on the eastern side of the valley. This is the site of a geothermal energy project being evaluated by Ormat Technologies Inc.
Note the geologic similarities between Clayton Valley and Edwards Creek Valley or the geologic similarities between Albemarle’s Silver Peak Mine and the ECV Property does not guarantee exploration success at the ECV Property.
Ameriwest initiated a gravity study in 2021 that shows a massive gravity low representing a basin where lithium brines may be located. Based on the gravity study, Ameriwest proceeded quickly to acquire additional ground to the northeast to encompass the gravity low signature (1,243 claims present day). Note that Ameriwest has staked claims that essentially cover the entire valley, controlling the brine target without any competitors.
In 2021, Ameriwest retained Zonge International to complete MT geophysical surveys (magnetotellurics) to provide a combination of structural permeability and thermal information. One MT line was run across the Property in an northwest-southeast orientation in 2021. In 2022, an additional 5 MT lines were completed on the Property in a northwest-southeast orientation. Data, once processed, revealed low resistivity (high conductivity) in several locations across the Property. Low resistivity with readings of 1-2 ohm-metres is indicative of brine, which has potential to be also rich in lithium and associated minerals.
No surface sampling has been done on the Property. Due to the depth and geological nature of a lithium brine deposit, it was felt surface sampling would not be useful in characterising the deposit.
No drilling has yet been carried out on the Property.
No mineral resources or reserves have yet been delineated on the Property that have been prepared in accordance with National Instrument 43-101 (“NI 43-101) or meet CIM standards for disclosure.
The Company is reviewing the gravity and MT geophysics work completed to date and may elect to do additional geophysics, including a seismic geophysics survey. The Company plans to permit a drilling program in late 2023 and, subject to permits, drill availability, financing, and other factors, plans to drill one or more exploratory drillholes at ECV in 2023.
The scientific and technical information regarding this project has been reviewed and approved by Robert Pease, CPG, a consultant to Ameriwest and a Qualified Person as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects.
Statements are based on information currently available to the Company and the Company provides no assurance that actual results and future performance and achievements will meet or not differ from the expectations of management or qualified persons. All statements other than statements of historical fact are forward-looking statements. The words “believe,” “will,” “may,” “may have,” “would,” “estimate,” “continues,” “anticipates,” “intends,” “plans,” “expects,” “budget,” “scheduled,” “forecasts” and similar words are intended to identify estimates and forward-looking statements. Forward-looking statements are not guarantees and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Actual results and developments may be substantially different from the expectations described in the forward-looking statements for a number of reasons, many of which are not under our control, among them, exploration results, the activities of our competition, the future global economic situation, weather conditions, market prices and conditions, exchange rates, and operational and financial risks. The unexpected occurrence of one or more of the abovementioned events may significantly change the results of our operations on which we have based our estimates and forward-looking statements. Our estimates and forward-looking statements may also be influenced by, among others, legal, political, environmental or other risks that could materially affect the potential development of the Project, including risks related to outbreaks of contagious diseases or health crises impacting overall economic activity regionally or globally.
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