Highlights:
- The Company has streamlined its existing portfolio, dropping the Lost Basin Gold-Copper Project.
- The Company will focus on advancing its lithium portfolio which includes two (2) flagship assets, the Jackpot Lake Lithium Brine Project and the White Willow Lithium Pegmatite Project.
- The Company has also entered negotiations to acquire assets in the Frazer Lake Camp, where a recent significant lithium discovery included a spodumene-rich dyke that graded an average of 6.82% Li2O within a 9 km trend that emphasizes the regions potential for hosting further high-grade lithium mineralization.
Vancouver, British Columbia / September 6, 2023 – Usha Resources Ltd. (“USHA” or the “Company”) (TSXV: USHA) (OTCQB: USHAF) (FSE: JO0), a North American lithium exploration company, is pleased to announce that following a comprehensive review of its portfolio, it has elected to not proceed with the Lost Basin Copper-Gold Project in alignment with the Company’s strategic objectives of transitioning to a pure-play lithium explorer.
The termination of the agreement will allow the Company to better focus on its growing portfolio of lithium projects in Ontario which includes White Willow, where it recently announced a lithium-cesium-tantalum (LCT) with a potential strike length of greater than 25 km that is open at both ends, while continuing to develop its flagship lithium brine project at Jackpot Lake, a setting where it has demonstrated the system is analogous to that of Clayton Valley which hosts Albemarle’s Silver Peak lithium brine mine, the only producing lithium operation in the United States. A summary of each of these is included below.
The Company is also pleased to announce that it has entered into negotiations to acquire assets in the Frazer Lake Camp, where a recent significant lithium discovery included a spodumene-rich dyke that graded an average of 6.82% Li2O within a 9 km trend that emphasizes the regions potential for hosting further high-grade lithium mineralization. The company is in the advanced stages of negotiations for specific projects in proximity and adjacent to the project hosting the discovery and will provide further updates as negotiations progress.
“While Lost Basin presented an interesting opportunity, given our recent advancements within the rest of our portfolio, proceeding further did not align with our long-term strategic goals,” stated Mr. Deepak Varshney, CEO of Usha Resources. “We will continue to concentrate our efforts on our core projects at Jackpot Lake and White Willow but also look to expand in Ontario and Quebec where recent discoveries highlight the potential for these jurisdictions as emerging centres of lithium exploration and development comparable to some of the largest districts globally. We believe there is a high probability that there will be additional discoveries throughout the province given the early stage of exploration in most areas. Given our strong cash position, we believe we are well positioned to participate in this emerging sector of exploration, and, accordingly, we have undertaken a review of properties that are of interest.”
Investors are cautioned that there is no assurance that negotiations involving any potential acquisition will conclude successfully.
Portfolio Highlights
Jackpot Lake
Jackpot Lake is a lithium brine project where the Company is advancing a program with the goal of defining an NI 43-101 resource. Key findings of the program to date include:
- A geologic system is present similar to that of Clayton Valley that includes up to 423 feet of potentially pumpable aquifer present in a coarse-grained zone that is similar to the units which are a primary focus for expansion at Albemarle’s Silver Peak lithium brine mine, the only domestic supplier of lithium within the United States, and at Pure Energy’s Clayton Valley project, where it identified a large volume of brine with superior grades.
- Soils at the project are enriched in lithium at a level comparable with Clayton Valley. Enriched lithium is present within the holes advanced, with an average of 334 parts per million and high of 820 ppm Li in 30 samples collected from shallow surface soils (less than 500 ft) within JP22-02. These results compare very favourably with the reported average of 100 ppm for the Esmeralda formation, one of the potential sources of the lithium enrichment for the brines present in Clayton Valley.
- The stratigraphy at the site supports an NI 43-101‑compliant resource. Similar stratigraphy has been encountered in JP22-02 as that in drill hole JP22-01, suggesting that the favourable stratigraphy identified in drilling is present throughout the basin as the two holes are 2.75 km apart.
Figure 1 – Left, location map showing Jackpot Lake in reference to the Silver Peak Mine and the TLC Project. Right, core photos from drilling of evaporite crystallization and conglomerate. Evaporite crystallization supports the presence of a brine forming environment while the conglomerate indicates that a high-porosity zone should be present that could contain a significant quantity of brine as observed at Clayton Valley.
White Willow
White Willow is a lithium pegmatite project where the Company is advancing a program with the goal of completing its maiden drilling in Q1 of 2024. Key findings of the program to date include:
- The strike of the system is greater than 25 km and is open at both ends.
- Four (4) primary target areas have been identified including two (2) highly evolved pegmatite swarms, Maple Leaf and Bingo, that have dykes over >1 km in length with excellent geochemistry and mineralogy indicative to be potentially spodumene-bearing.
- High-grade coarse-grained tantalite is present assaying 14.64% Ta2O5. The only other known occurrence is at the North Aubrey pegmatite at Green Technology Metals (GT1) Seymour Lake Project where GT1 has identified a 9.9 Mt at 1.04% Li2O.
Figure 2 – Map of the White Willow Project with anomalous lithium, cesium and tantalum values across a 25+ km strike. Inset, left, tantalite, right, beryl. These minerals, combined with the geochemical ratios observed (low K/Rb and Nb/Ta) indicate the potential for these Maple Leaf and Bingo dykes to be potentially spodumene-bearing.
Corporate Matters
The Company is pleased to announce that, further to its news release dated August 3, 2023, it has issued 200,000 common shares (the “Shares”) at a deemed price of $0.1275 per Share to 2758145 Ontario Ltd., Peter Gehrels, and Allan George Onchulenko (the “Vendors”) of Atikokan, Ontario, for the right to purchase an undivided 100% interest in 141 unpatented mining claims (the “Property”) located in the Thunder Bay Mining Division of Ontario adjacent to the White Willow property. The Company executed an option agreement (the “Option Agreement”) with the Vendors on July 31, 2023 with respect to the Property and the issuance of 200,000 Shares represents the first payment owing to the Vendors.
The Company also wishes to correct the information regarding the net-smelter returns royalty (the “NSR”) as announced on August 3, 2023. Pursuant to the Option Agreement, the Company may purchase 50% of the NSR from the Vendor at any time for consideration of $1,000,000.
The Option Agreement entered into with the Vendors with respect to the Property, and the transactions contemplated therein, remain subject to the final approval of the TSX Venture Exchange.
The Company also announces that it has cancelled a total of 1,625,000 incentive stock options previously granted to certain consultants of the Company on October 7, 2021, January 7, 2022, February 9, 2022, December 30, 2022, March 7, 2023 and May 8, 2023.
The Company also announces that it has issued a total of 3,000,000 restricted share units (the “RSUs”) and 100,000 incentive stock options (the “Options”) to certain officers, directors, consultants and senior management of the Company in accordance with the provisions of its omnibus incentive plan. The Options are exercisable at $0.18 per common share for a period of 2 years and vest quarterly from the date of grant. The RSUs will vest one year from the date of grant.
The Company also announces has entered into a Consulting Agreement (the “Agreement) with Triomphe Holdings Ltd. (dba Capital Analytica) dated September 15, 2023 to provide a multi-faceted Promotional Enhancement Service. Capital Analytica is a Nanaimo, BC based company. Pursuant to the Agreement, Capital Analytica has agreed to provide services to the Company for a fee of $60,000 upon Exchange approval for a term of three months. The services will include on-going social media consultation regarding engagement and enhancement, social sentiment reporting, social engagement reporting, discussion forum monitoring and reporting, corporate video dissemination and other related investor relation services. The Agreement is subject Exchange approval.
Capital Analytica and the Company are not related parties and operate at arm’s length. Neither Capital Analytica or its principals have any interest in the Company’s securities, directly or indirectly, or any right or intent to acquire such an interest.
Qualified person
The technical content of this news release relating to the White Willow Project has been reviewed and approved by Mr. Andrew Tims, P.Geo., a qualified person as defined by National Instrument 43-101 (“NI 43-101”).
The technical content of this news release relating to the Jackpot Lake project has been reviewed and approved by Seth Cude, PG, CPG, RM, MSc, a qualified person as defined by NI 43-101.
About Usha Resources Ltd.
Usha Resources Ltd. is a North American mineral acquisition and exploration company focused on the development of quality lithium metal properties that are drill-ready with high-upside and expansion potential. Based in Vancouver, BC, Usha’s portfolio of strategic properties provides target-rich diversification and includes Jackpot Lake, a lithium brine project in Nevada and White Willow, a lithium pegmatite project in Ontario that is the flagship among its growing portfolio of hard-rock lithium assets. Usha trades on the TSX Venture Exchange under the symbol USHA, the OTCQB Exchange under the symbol USHAF and the Frankfurt Stock Exchange under the symbol JO0.
USHA RESOURCES LTD.
For more information, please call Tyler Muir, Investor Relations, at 1-888-772-2452, email tmuir@usharesources.com, or visit www.usharesources.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-looking statements:
This news release may include “forward-looking information” under applicable Canadian securities legislation. Such forward-looking information reflects management’s current beliefs and are based on a number of estimates and/or assumptions made by and information currently available to the Company that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors that may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. Readers are cautioned that such forward-looking information are neither promises nor guarantees and are subject to known and unknown risks and uncertainties including, but not limited to, general business, economic, competitive, political and social uncertainties, uncertain and volatile equity and capital markets, lack of available capital, actual results of exploration activities, environmental risks, future prices of base and other metals, operating risks, accidents, labour issues, delays in obtaining governmental approvals and permits, and other risks in the mining industry.
The Company is presently an exploration stage company. Exploration is highly speculative in nature, involves many risks, requires substantial expenditures, and may not result in the discovery of mineral deposits that can be mined profitably. Furthermore, the Company currently has no reserves on any of its properties. As a result, there can be no assurance that such forward-looking statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements.