ASX Announcement 27 March 2017 Exploration Update – Lithium...

ASX Announcement
27 March 2017
Exploration Update – Lithium Brine Projects
Caeneus Minerals Ltd (“Caeneus” or “the Company”) is pleased to provide the following exploration update
on the progress of its Lithium Brine Exploration Projects in Nevada, USA.
Highlights:
 Slight delay in completion of technical programs due to unusually wet (rain and snow) conditions
in southern Nevada.
 Gravity program completed at Scotty’s South confirms presence of sedimentary basin with
potential to host lithium brines.
 Gravity program completed at Columbus Marsh confirms simple and broad gravity suggesting a
deep basement with a large amount of sedimentary basin cover with the potential to host
lithium brines.
 CSAMT results at Columbus Marsh shows a very conductive, homogenous layer for several
kilometres below the surface which may be the result of very saturated and conductive clays on
surface or truly homogenous and conductive layers in the subsurface.
 Given the continued encouraging data being encountered and further validation from
neighbouring work, the Company has decided to evaluate and drill all three brine projects in
sequence for the Phase One Drilling Program.
 Targets selected, permitting applications to the Bureau of Land Management (BLM) finalised and
drilling scheduled to commence 17 April 2017.
Anticipated Work Timetable – 1H 2017
Geophysical Work Programs Completed & Interpreted
A summary of the projects, geophysical work undertaken and proposed drill targets as part of the Phase
One Drilling Program is as follows:
Scotty’s South:
 Large basin comparable in size to Clayton Valley. Potential source rocks of tertiary volcanics are
located on the edges of the basin. Streams flow in from all directions.
 Simple and broad gravity, suggesting deep basement. Project at the south end of the gravity low
and basin.
 The CSAMT survey imaged a layer of low resistivity coupled by a series of large ovoid low resistivity
features, with a particularly low resistivity anomaly to the east of the claims.
 This strongest conductive layer is between 400 and 800 metres depth and is interpreted to have
significant potential to host conductive lithium-rich brine aquifers or saturated clays, or both.
Proposed hole to target this (“SS-1”) as part of Phase One Drilling Program.
 (“SS-4”), on western edge of the project also to be targeted to test the shallower part of the same
anomalous layer.
 CSAMT suggests possible brine at a very deep (1.2 to 1.8 kilometres below surface) depth
corresponding very well with the bowl of the gravity low. Proposed hole (“SS-2”) as part of a
possible future drilling campaign. (“SS-3”) to test the other side of interpreted fault as part of a
possible future drilling campaign.
 Preferred contractor nominated with first drilling scheduled to commence on 17 April 2017.
Figure One: CSAMT Survey & Planned Drill Hole Locations (Phase One & Future) – Scotty’s South
Lida Valley:
 Montezuma Peak interpreted source for the lithium contained in brine discoveries in the Clayton
Valley and it is interpreted that Lida Valley represents the possible southern migration of this flow.
 Complex gravity, reflecting possible shallow basement. The project is situated within a broad
gravity-low.
 CSAMT suggests a possible shallow brine at roughly 100 to 300 metres below the surface.
 Several holes (“LV-1 to LV-5”) permitted to test the varying gravity and CSAMT anomalies. Two
holes (“LV-1” and “LV-4”) to be drilled as part of Phase One Drilling Program.
 Work commenced clearing drill pads
Figure Two: Historical CSAMT Survey (Two Lines) & Permitted Drill Hole Locations – Lida Valley
Columbus Marsh:
 Large mature saline basin, surrounded by tertiary epithermal systems indicating that hot springs
activity has been an influence. Clayton Valley is located on trend to the South-East.
 Source rocks include the Fish Lake Valley, Rhodes Marsh, extensive areas of Esmeralda Formation
including the entire south-west slope of the basin, and an active geothermal system.
 Simple and broad gravity, suggesting deep basement. Project is at the northern end of the gravity
low and in the central part of the basin.
 CSAMT shows a very conductive, homogenous layer for several kilometres below the surface. This
may be the result of very saturated and conductive clays on surface or truly homogenous layers in
the subsurface.
 One priority hole (“CSM-1”) to test stratigraphy and nature of groundwater with follow up
refinement of drill targets as part of future drilling campaign.
Figure Three: CSAMT Survey & Planned Drill Hole Location – Columbus
Permitting Underway for Scotty’s South and Columbus Marsh
Applications to the Nevada Bureau of Land Management (“BLM”) have been finalized and are expected to
be submitted to the BLM in the coming days. Given the likely approval time window of the BLM, the
Company expects to be able to commence drilling at Scotty’s South on 17 April 2017 and move across to
each project in series, thus resulting in economies of scale for mobilisation costs, technical consultants, and
so forth.
Preferred Drill Contractor Nominated
O’Keefe Drilling (“O’Keefe”) of Butte, Montana have been nominated as the drill contractor for the Phase
One Drilling Program. O’Keefe has been established for over fifty years and is considered the driller of
choice for working on lithium brines in Nevada, with experience on many projects in the region.
Chip Allender to be Engaged
As previously reported by the Company, Chip Allender has been engaged to oversee the Phase One Drilling
Program in assistance to Managing Director, Steve Elliott, and the Mineral Exploration and Project
Management team at Dahrouge Geological. Mr. Allender will be critical in working with O’Keefe to provide
successful cores from the sedimentary basin as well as water samples from interpreted brine horizons free
from containments and water intrusion.
Surrounding Projects
The Company continues to compile and analyse the large amounts of technical data from drilling currently
underway on surrounding projects in conjunction with technical consultants, drillers and other specialists.
The Company is encouraged by the proven existence of lithium rich horizons having being discovered in
relative proximity to all three of the Company’s lithium brine exploration projects. Furthermore, active
participants in the region are demonstrating strong recoveries associated with the ability to leach lithium
from sediments and clays which may represent a new method of commercial lithium extraction.
Conclusion
The Company is pleased to commence the next stage of its growth strategy and to build on its highly
encouraging geophysical results. Caeneus Minerals Ltd looks forward to updating the market on further
progress on what promises to be an exciting time for the Company’s growth aspirations in 2017.
For and on behalf of the Board
Steve Elliott
Managing Director
Competent Person Statement
The information in this announcement that relates to Exploration Results, Mineral Resources or Ore Reserves is based on
information compiled by Steven Elliott who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Elliott is a
director of the Company. Mr Elliott has sufficient experience which is relevant to the style and type of deposit under
consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of
the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore
Reserves. Mr Elliott consents to the inclusion in the announcement of the matters based on his information in the form and
context in which it appears.CmdV