Iconic Minerals Ltd. (“Iconic”) (TSXV: ICM) (OTCQB: BVTEF) (FSE: YQGB) and Nevada Lithium Resources Inc. (“Nevada Lithium”) (CSE: NVLH) (OTCQB: NVLHF) (FSE: 87K) announce that they have entered into a letter of intent dated January 6, 2023 (the “LOI”), whereby Nevada Lithium and Iconic would consolidate 100% interest in the Bonnie Claire Lithium project located in Nye County, Nevada (the “Project” or the “Bonnie Claire Project”), whereby Nevada Lithium would hold a 100% interest in the Project (the “Proposed Transaction”). The Proposed Transaction has the unanimous support of each company’s board of directors.
Stephen Rentschler, Nevada Lithium CEO, commented:
We are pleased to announce the signing of the LOI with Iconic for the Bonnie Claire Property.
“With 100% consolidated ownership, the company’s ability to negotiate with strategic investors and lithium end-users will be significantly enhanced. This is a key to unlocking shareholder value.“
Richard Kern, Iconic’s CEO, added:
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The Proposed Transaction represents an opportunity for Iconic shareholders to be part of a reunification of the Bonnie Claire Project under consolidated ownership and to continue to participate in the benefits of the Project’s future development and upside.
Mr. Rentschler continued, “Lithium remains a key commodity component of electric vehicles, and recent lithium prices reflect the outlook for persistent lithium supply deficits.
“Lithium Carbonate Equivalent (LCE) prices are now roughly five times higher than the assumed prices used in our robust Preliminary Economic Assessment, where at a base case pricing assumption of $13,500/ tonne LCE the Project returned an NPV of $1.5 Billion USD (ATAX 8%).1”
“Recent 2022 drill program results have also returned the highest lithium values ever recorded at Bonnie Claire, including 3,079 ppm Li over 446 ft. (136 m) within a wider interval of 1,246 ppm Li over 1,994 ft (608 m)2. With a projected annual production rate of over 30,000 tonnes of LCE, and a resource base that indicates the ability to upsize production further, Bonnie Claire has the potential to play a significant role in meeting global lithium needs.
“Having seen Richard Kern’s original theory of a significant lithium resource at Bonnie Claire borne out, I firmly believe that Bonnie Claire is one of the most attractive global lithium assets remaining in junior developers’ hands. I look forward to continuing to work with Richard and welcome Iconic shareholders to Nevada Lithium”.
Bonnie Claire Project
The Bonnie Claire Project is located within Sarcobatus Valley, which is approximately 30 km (19 miles) long and 20 km (12 miles) wide. Quartz-rich volcanic tuffs containing anomalous amounts of lithium occur within and adjacent to the valley. Drill results from the salt flat include 2,054 ppm Li over 67.1 m (220 ft) in drill hole BC-1601 as well as a 475 m (1560 ft) vertical intercept that averaged 1153 ppm Li.
The Bonnie Claire Project is one the largest lithium resources in North America with a current NI 43-101 inferred mineral resource 3,407 million tonnes (Mt) grading 1,013 ppm Li for 18,372 million kilograms of contained lithium carbonate equivalent, at a cut-off grade of 700 ppm Li. Mineral resources are not mineral reserves as they do not have demonstrated economic viability.
The gravity low that characterizes the valley is approximately 20 km (12 miles) long, and the current estimates of depth to basement rocks range from 600 to 1,200 meters (2,000 to 4,000 feet). The current claim block covers an area of 74 km2 (28.6 mi2) with potential for brine systems and further sediment resources.
Iconic Minerals and Nevada Lithium Enter into Letter of Intent to Consolidate 100% Ownership Interest in the Bonnie Claire Lithium Property, Nevada, VANCOUVER, BC, January 9, 2023
