Impact: Positive
Noram Lithium announced that based on a geological review of its 100%-owned Zeus Li clay project, located in Clayton Valley, Nevada, a second, potential high-grade zone has been identified below the existing high-grade core of the deposit. The review is based on surface mapping and core re-logging and is a critical step in advancing the project toward a PFS. The potential zone was identified through assays from 23 previous holes completed at Zeus, all of which ended in high-grade mineralization including: 1) 1,410 ppm Li over 137m (CVZ-70), 2) 1,300 Li over 119m (CVZ-51), and 3) 1,360 ppm over 109m (CVZ-80). As a result of this new discovery, Noram is developing a drill program to test this area, with drilling expected to commence at depths below 70m this quarter (Q4/23). We view this update positively, as the presence of a potential second high-grade zone, underneath the existing high-grade core of the Zeus deposit, would bode very well for the economics of the project. Over the past few months, management has been working to optimize the Zeus mine plan, which focuses on commencing production from the higher-grade core of the deposit first (read note). In addition to mine plan optimization, metallurgical test work also remains ongoing to improve overall Li recovery rates in the process flow sheet (read notable). In light of the inflationary pressures currently plaguing the entire industry, we are encouraged to see management revisit the Zeus mine plan and enhance it in an effort to yield better project economics.
