Unique Opportunity with Arizona-based geologist, Mr Bill Feyerabend, a Clayton Valley Lithium expert
Clayton Valley is the only source of Lithium brine production in the USA
Extensive geological modelling has identified a Clayton Valley lookalike in Utah
Project located in state of Utah – voted top 10 world class mining jurisdiction
The Red Valley Project shares a striking geologic similarity to Clayton Valley. It has endured the same geologic processes to generate lithium brines with a chemistry similar to those now being commercially produced. It has also endured the same geologic processes to create suitable reservoir horizons in its valley sediments. Historic water drilling and sampling has revealed anomalous Lithium and further that other indicia of Lithium systems are also present. To date, the target area has not been drill tested and is in a world class mining jurisdiction. The vast majority of the project area is federal lands managed by the Bureau of Land Management where mineral staking and permitting historically have been straight forward processes.
The project area was identified by Mr Feyerabend by focusing consecutively on areas of crustal extension in western North America and then on areas of rhyolitic volcanics. Final focus came with historical chemical analyses and looking at all available drill and geological information.
Mr Feyerabend stated:
“My experience in the Clayton Valley led me to query why it was the sole Lithium brine production location in the USA. Analysis of Clayton Valley physical characteristics and considerable research over the last two years has led to the identification of the Red Valley Project as a geologic analogue for the Clayton Valley.”
“More recently, clay based Lithium exploration projects have gained some prominence. The Red Valley Project is not clay based and can be distinguished from these clay based projects which will ultimately have to rely on the development of new and untried extraction and separation technologies. I look forward to working with Red Mountain to test the Red Valley Project during what will be an exciting time.”
Under the Earn-In Agreement, RMX will fund initial drilling and chemical analysis of the Red Valley Project. Prior to drilling, RMX will carry out further staking of tenements around the drilling areas which ensure that it controls an area of sufficient size to develop a significant Lithium brines operation. The total cost of initial drilling, analysis and tenement applications is estimated to be between US$200,000 and US$325,000.
If commercial grade Lithium is reported in brines, RMX has the right to acquire 51% of the Red Valley Project for US$250,000.
Should RMX elect to proceed with the acquisition, a joint venture will be formed and RMX will have right to increase its ownership to 80% of the Red Valley Project by meeting certain expenditure requirements on the Red Valley Project. After that, the joint venture will become a contributing arrangement with customary dilution provisions.