Blue Eagle Lithium Inc. Receives Completed NI 43-101 Report
HENDERSON, Nev., Oct. 22, 2018 (GLOBE NEWSWIRE) -- Blue Eagle Lithium Inc. (OTCQB: BEAG) ("Blue Eagle" or the "Company") is pleased to announce it has received a completed National Instrument NI 43-101 report from Tekhne Research. The report, commissioned by Blue Eagle in August 2018, represents an important research tool for the Company to plan an appropriate exploration program for its Railroad Valley property. Tekhne Research, based out of Victoria, Canada, was chosen for its experience in Railroad Valley and having conducted NI 43-101 reports for other Lithium exploration companies.
Blue Eagle is a Lithium exploration company engaged in identifying, evaluating and developing early-stage Lithium exploration opportunities in North America. The Company's initial property is located in Railroad Valley, Nevada, a highly prospective green-fields petro-Lithium brine target in an area first identified as Lithium rich by the US Geologic Survey. Geophysical investigations have also identified structures and architecture that are consistent with the Lithium-bearing brine deposit models identified in Clayton Valley, home to North America's only Lithium producing mine owned by Albemarle Corp. The Company has a 100% Working Interest in 200 placer claims covering 4,000 acres (~1,619 hectares).
Summary of the Report
The author highlights that the analogy between Railroad Valley and Clayton Valley is strong. Both are closed, arid terminal basins bounded by faults and filled with porous young sediments. Railroad Valley basis is volumetrically larger, has a larger playa surface and has a larger catchment area for source Lithium. The presence of soil samples in the same range as the Lithium brine at Clayton Valley suggests similar concentration.
With many features similar to Clayton Valley, the Property represents a new and untested target for Lithium brine. The Railroad Valley brine exploration can build on the dense existing oil field data, the experiences at Clayton Valley and other Lithium-brine basins to target potential brine aquifers. The petroleum data can be purchased through agents and the closed wells can be reopened for water testing. Only a few companies are starting to utilize the assets to assess the actual Lithium potential of the several basins.
The recommended work program consists of two-phases with further work dependent on results. Phase 1 would focus on collecting and synthesizing available well-logs (geological and electronic), gravity and seismic data, all of which can be purchased through oil and gas data brokers. Railroad Valley's 60-year history of oil exploration will have a large data set compared with other potential Li-brine basins in Nevada and Utah. Concurrently, Audio-Magnetotelluric (AMT) electromagnetic surveys are recommended and would cross the property along three lines totalling 13.2 km. to test for faults, and basin depth. A systematic soil augur and biogeochemical program would also test Lithium anomalies below surface wind-blown contamination/dilutants. Combining seismic, gravity and AMT data from multiple traverses, a 3D analysis of the subsurface geology testing for faults and basin depth could be completed.
“The Company is delighted to have received this report as it reinforces our belief in the property and provides additional clarity to our initial exploration program,” Blue Eagle Lithium CEO Rupert Ireland said. “Infill surface sampling along with ground based electrical geophysical surveying followed with drilling are the next logical steps in the exploration of our property. The initial holes will be designed to test specific structural and stratigraphic targets, and assuming they confirm the presence of economic Lithium deposits, additional holes would be drilled to expand on the basin hydrogeology, leading to resource estimation. I look forward to implementing an exploration program with the aid of this report and ultimately to create value for our shareholders."
The report can be found in full and available for download via the Blue Eagle website at: Blue Eagle Lithium NI 43-101 Report.
Property and Work Program Overview following the Report
Mr. Ireland commented, "While the geological features of Railroad Valley are becoming better understood from published airborne mag and gravity maps, and from proprietary geophysical work, Railroad Valley, as Nevada's primary oil and gas producer, is also home to a rich source of geologic, well log and geophysical data. Many of the oil and gas wells previously drilled penetrated brine-bearing horizons, yet few of these brines were ever analyzed for Lithium. Past and current oil and gas producers represent a wealth of available data for acquisition and may help interpret and complete the geologic picture of Lithium brine-formation in Railroad Valley."
Lithium-enriched brine is the most cost-effective form of Lithium production and is responsible for a large portion of the global production. This type of project has a number of advantages over other Lithium mining projects/alternatives, most notably conventional hard rock. The Company's focus is in Lithium brine as these types of projects are generally more cost effective to explore, quicker to prove to a resource and reserve, faster/less capital intensive to put into production and have a smaller in environmental footprint.
"In modelling potential Lithium targets in Nevada, it was clear that Railroad Valley represented an exciting prospect," stated Mr. Ireland. "The area was already known to hold similar geologic characteristics to that of Clayton Valley and to the salt flats in Argentina and Chile, whereby young volcanic tuffs and flows are thought to be the source of Lithium. The Railroad Valley catchment area is known to contain a 550 sq. km lake that evaporated over the Pleistocene epoch, and that geothermally circulating water descended down from the mountains leaching Lithium from the volcanics. The available oil and gas well data confirm that the playa sediments contain tuffaceous volcanic material, which is consistent with brine formation theories in closed basins.
“In evaluating various potential projects, the Company also looked at the combination of gravity surveys indicating a closed gravity low in the southern Railroad Valley coincident with a zone of high electrical conductivity and the publicly available USGS sediment samples. In totality, it was evident that this target area in Railroad Valley held the potential for a discovery. In addition, unlike the large-scale Lithium brine projects in South America, the U.S. has a better transportation and electrical grid infrastructure, skilled labour and the property is within easy road access of Tesla's Gigafactory."
The Company's planned drilled program will be optimized with consideration to technology so as to examine the basin's overall reservoir potential while an examination of the geophysics will evaluate the lateral extent of the brine horizons. By testing brine flow rates, the program would be designed to provide detailed economic analysis and ultimately a resource.
"While not finalized, we are also keen for the Company to consider deploying several methods and technologies, including but not limited to auger sampling, air rotary water core and diamond drilling", stated COO Rod Murray. "Given both my own and Railroad Valley's history with oil and gas, we believe there is merit to considering technologies used in the oil patch for the Company's Lithium project. If we can identify a brine horizon that can be pumped out, the Company will look to a larger diameter well, thus suggesting drilling technology from the oil sector. As the Lithium deposit here would be salt, a smaller diameter hole via aircore rotary or diamond drilling would likely be inefficient. If the Company can drill through a hundred-foot brine horizon that intersects a strike length of a couple miles, for instance, a horizontal well could then result in operations for years. Ultimately, these brine flow rates would define the economics of the property, so we want the technology to be implemented for the work program to consider not just the drilling but also future production."
The Company's geological team is in the process of acquiring and reviewing available well data and developing a planned exploration program of drilling and geophysics for its Lithium project, and the NI 43-101 report is a key component of its evaluations.
IR TOLL-FREE: 1-877-344-BLUE
INVESTOR EMAIL: IR@blueeagleLithium.com
This news release may contain "forward-looking" statements. These forward-looking statements are only predictions and are subject to certain risks, uncertainties and assumptions that could cause actual results to differ from those in the forward looking-statements. Potential risks and uncertainties include such factors as uncertainty of consumer demand for the Company's products, as well as additional risks and uncertainties that are identified and described in the Company's SEC reports. Actual results may differ materially from the forward-looking statements in this press release. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. The Company does not undertake, and it specifically disclaims, any obligation to update any forward-looking statements to reflect occurrences, developments, events or circumstances after the date of such statement.
Released October 22, 2018