The 15,300 acre Railroad Valley Property (“RRV” or the “Property”) is a greenfields lithium brine exploration target located in Railroad Valley, Nevada (“Railroad Valley” or the “Valley”). The North Railroad Valley drainage basin is larger in size and has similar geologic potential to host a lithium brine deposit similar to the one found in Clayton Valley, Nevada, located just 125 mi to the west-southwest. Clayton Valley currently hosts the only operating lithium brine operation in North America, the Silver Peak Mine, owned by Albemarle Corporation (NYSE: ALB).
Ameriwest has defined a large lithium brine exploration target in the southwestern end of North Railroad Valley. The target is based on gravity, magnetotelluric, and seismic geophysics studies completed by Ameriwest, along with available historic oil well drilling logs and seismic data. Drilling is required next to confirm the presence of a lithium bearing brine.
No mineral resources or reserves have yet been defined on the property. Similarities of the RRV Property to Clayton Valley or the Silver Peak Mine do not guarantee exploration success at RRV.
The Property is located 48 mi southwest of Ely Nevada and 125 mi south of Elko Nevada. It encompasses 780 contiguous placer claims for a total of about 15,300 acres. Ameriwest staked 556 placer claims in 2021 and 2022. In addition, the Company acquired 224 placer claims from American Battery Technology Company (OTCQB: ABML) in 2022. The Property is 100% owned by Ameriwest, with no underlying royalties.
(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
Paleozoic limestone and dolomite carbonate rocks are exposed in the Pancake Range on the west side of the Valley, and also in the Quinn Canyon Range and Grant Range on the east side of the Valley. Tertiary volcanic rocks, including calderas, mostly occur in the Pancake Range. Based on oil well logs, the east side of Railroad Valley is largely underlain by the Paleozoic rocks and the west side is generally underlain by the Tertiary volcanic rocks at depths up to 4,900 feet.
A major geologic feature adjacent to Railroad Valley, in the Pancake Range, is the presence of a large group of volcanic calderas, named the Hot Creek Valley Caldera Complex. This complex consists of five individual calderas. In addition, three other calderas exist on the south side of the Valley and one on the north side. The presence of these calderas is considered a positive for successful lithium exploration.
The Northern Railroad Valley hydrogeologic area covers an area of 1,375,360 acres. In comparison, Clayton Valley hydrogeologic area covers an area of 355,200 acres. Hence, the hydrogeologic area for RRV is about 3.9 times the size of the Clayton Valley area.
Ameriwest initiated a gravity survey in 2022 that shows a massive gravity low representing a basin where lithium brines may be located. The study consisted of a 278-station gravity survey to map the basement structure and provided additional understanding on the permeable structures. Based on the gravity study, Ameriwest proceeded quickly to acquire additional ground to encompass the gravity low signature (780 claims present day).
In 2022, Ameriwest also retained Zonge International to complete MT geophysical surveys (magnetotellurics) to provide a combination of structural permeability and thermal information. A total of 6 MT lines were run across the property in an east-west orientation. In addition, data from two MT lines was obtained from ABTC. 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.
Because of historic oil and gas exploration in Railroad Valley, Ameriwest was able to purchase 94.5 miles of seismic lines data from Seismic Exchange Inc.. Seismic data provides important structural controls to the deposition model (e.g. faults, lithologies, and other data) and helps to model and constrain the MT data.
Ameriwest then retained Castillo Geophysical Limited and Legg Geophysical Inc. (“Castillo”) to provide an interpretation of the historical oil drill data and gravity, MT, and seismic geophysical data with the goal of defining one or more priority drill targets on the RRV Property. Castillo has made recommendations for several drill holes to test potential brine targets at depth and to determine if lithium is present.
No exploration drilling has been done yet by Ameriwest on the Property. A wealth of subsurface information is available from oil and gas exploration in the Valley. Some 23 wells were drilled on or in the vicinity of Ameriwest’s Railroad Valley Property. Historic well log data has been a great source of geologic and other information. Unfortunately, the focus of oil and gas exploration was not lithium exploration, and no sampling was done for lithium.
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 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.
Ameriwest has received a geophysic report completed by Castillo Geophysical Limited and Legg Geophysical Inc. that analysed combined gravity, MT, seismic, and other data from studies completed by the Company or data acquired by the Company. This report recommends several locations for initial drill holes at the RRV Property with the hopes of making a lithium brine discovery. The Company plans to move forward and permit a drilling program at the RRV Property, with the goal of making a lithium brine discovery, subject to financing.
Geological similarity of this property to other adjacent or nearby properties does not guarantee exploration success. No mineral resources or reserves, as defined by National Instrument 43-101 standards or CIM standards have yet been delineated on the property.
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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