Highlights

• Loyal Lithium is all set to commence drilling at its 100%-owned Scotty Lithium Project in Nevada, USA, in March 2023.
• The company has appointed Boart Longyear as the contractor for sonic drilling targeting lithium bearing sediments at the Target 2 of the project.
• The target is located only 1km west of the robust lithium-boron drill results recorded at the adjacent Bonnie Claire Lithium Project.
• LLI has obtained all the permits that are required for drilling from the Bureau of Land Management (BLM).

Loyal Lithium Limited (ASX:LLI) is set to launch a sonic drilling campaign at its 100%-owned Scotty Lithium Project in Nevada, USA, in March 2023. The company has roped in Boart Longyear as the contractor for the drilling program.   

The sonic drilling will be performed with a prime focus on the highly prospective Scotty Target 2, to discover lithium bearing sediments similar to the adjacent Bonnie Claire Lithium Project.

Project location (Image source: LLI update)

This development has been possible after the company successfully secured all essential drilling approvals from the Bureau of Land Management (BLM). 

Drilling to target lithium-boron potential at Scotty

The sonic drilling within Target 2 of the Scotty Lithium Project will be targeting the western extension of the basin on the basis of the observations from a MT survey that was completed recently. 

Drill core samples will be tested for lithium and boron. The adjacent Bonnie Claire

Lithium Project had returned impressive lithium values to a maximum of up to 5,570ppm and boron to >10,000ppm just 2.24km east of LLI’s Target 2 boundary.

Also, these values are quite similar to Ioneer’s (ASX:INR) Rhyolite Ridge Project lithium-boron resource, which is located ~100km to the northwest of the Scotty Lithium Project.

Data source: LLI update 

Prominence of Scotty Lithium Project

Having successfully negotiated the acquisition of the remaining 20% stake in the Scotty Lithium Project, Loyal Lithium is now the 100% owner of the project.

The project includes twin prospects of lithium sediments and lithium brines. Spanning over 78.1 km², the Scotty Lithium Project is located 189 km northwest of Las Vegas and 517 km from Reno in the Tier 1 mining jurisdiction of Nevada USA. It lies adjacent to Iconic Minerals Ltd (TSXV:ICM) Bonnie Claire Project, which has relative geology.

The Scotty project is also less than 100km from Albemarle’s operational Silver Peak Operation in Clayton Valley (NYSE:ALB) and Ioneer’s Rhyolite Ridge Lithium-Boron Project (ASX:INR).

Nevada lithium gathers steam with recent developments

Loyal Lithium also shared some recent positive developments in the region for lithium projects such as a US$700 million loan from the US Department of Energy to Ioneer (ASX:INR) for its Rhyolite Ridge Project.

Also, Lithium Americas Corp’s Thacker Pass Project in Nevada is gearing up for construction after securing favourable federal court ruling. Under a US$650 million equity investment and exclusive supply agreement, General Motors and Lithium Americas Corp. (NYSE:LAC) have joined hands for the Thacker Pass Project.

Data source: Company update

Loyal Lithium believes that a successful drilling program could achieve a maiden lithium resource. Moreover, the company highlights that lithium from Nevada is poised to be a significant part of the global lithium supply, owing to US government support for locally sourced critical minerals via the Inflation Reduction Act.  

LLI shares traded at AU$0.360 midday on 28 February 2023.