ACME Lithium (ACME) - Near-Mine Exploration Drilling in Nevada and Manitoba

ACME Lithium Inc. is a Canadian mineral exploration company focused on advancing its battery metal assets in Nevada and Manitoba. The company’s asset portfolio consists of the Clayton Valley and the Fish Lake Valley projects in Nevada and the Cat-Euclid Lake, Shatford Lake and Birse Lake projects in Manitoba. The Clayton Valley project of the company holds a land position of approximately 2,975 acres and is located next to the Silver Peak lithium mine owned and operated by the Albemarle Corporation. The project has the potential to host lithium brines similar to the Silver Peak lithium mine. The Fish Lake valley project of the company has shown mineralisation of up to 200 ppm of lithium within claystone and is located next to the Rhyolite Ridge Lithium-Boron project owned by Ioneer Ltd. The Shatford Lake project is a lithium pegmatite deposit which consists of 21 claims totalling approximately 8,883 acres in the southern limb of the Bird River Greenstone Belt of south-eastern Manitoba, Canada.

The company announced on the 11^th of January 2023, that it had commenced drilling at its Shatford Lake project. The drilling initiatives are planned to consist of 5,000 m of drilling, with various targets having been identified through the company’s 2022 summer exploration program.

The company has also placed a drill rig at the Clayton Valley lithium brine project, with the company aiming to commence with the second phase of exploration drilling as soon as the area’s weather allows. The drilling program is one of the largest in US history and will include drilling 3 exploration wells and a test well which will be aimed at better understanding the project’s aquifer.

Clayton Valley project and phase 2 drilling initiatives

The Clayton Valley lithium project of the company is located in Esmeralda county, Nevada. The project is located in a highly prospective region for lithium mining and development. The land position of the property totals approximately 2,440 acres and boasts access to infrastructure, rail and roads, power and water and expertise from the community’s mining-rich history. Steve Hansen, the President and CEO of ACME Lithium Inc. explains that the project is located northwest of the only lithium-producing operation in the United States.

“Our project is contiguous to the northwest of Albemarle's Silver Peak project. This is a brine project that's been in production since 1966. Albemarle is a New York Stock Exchange company, a USD$ 30 billion-plus company, and one of the largest providers and producers of lithium in the world. In fact, it's the only place where lithium is produced in the United States. It's hard to believe that there is only one place that currently produces lithium. We are their northwest neighbour.”

ACME Lithium Inc. has placed a drill rig at the Clayton Valley lithium brine project, with the company aiming to commence with the second phase of exploration drilling to follow up on the project’s historical exploration drilling results. The company announced in 2022 that it had intercepted multiple productive horizons at the project through its exploration drilling initiatives, with the average lithium concentrations intercepted being 41.4 mg/l of Lithium between 195 and 479 feet and up to 126.6 mg/l of lithium at a depth of between 1240 feet and 1400 feet.

The drilling program is according to Hansen one of the largest in US history and will include drilling 3 exploration wells and a test well which will be aimed at better understanding the project’s aquifer.

“We made a discovery last summer in the same lithology, an ancient lakebed that's been producing for a long time. We drilled to 1,400 ft last summer. It had brine intensifying all the way down to the bottom of the hole, with the highest grade at the bottom of the hole at 1,400 ft. We then worked all fall, through procurement, permitting and planning for this Phase 2 program. This is one of the largest brine programs in the United States to be drilled this past year. “

The second phase of drilling at the Clayton Valley project will occur as soon as the area’s weather allows. Hansen explains the weather conditions that have led to a delay in the commencement of the planned phase two drilling campaign as follows:

“California had an atmospheric river, they call it, that came through there in the first few days of the new year. That dropped a fair bit of rain and bad weather in that southwestern region of Nevada. We had some extra time to set up the rig. It's now on site and hopefully, we will have it set up this weekend.”

The phase two drilling program will consist of the drilling of a rotary hole, in which the company will be able to conduct pumping tests of the brine deposit as well as the completion of three exploration holes. The phase 2 drilling program at the project is set to cost between USD$ 2.5 million and USD$ 3 million and will aim to enable the company to create a lithium brine resource for the project.

“We will be drilling a twin hole, a rotary hole. This is a wider hole which is a test well, from that test well we're able to do a pump test to understand how the aquifer flows. Then, as part of this program, we're drilling up to three exploration holes that hopefully will allow us to get to a resource calculation and see how big that reservoir is.”

The envisioned phase 2 drilling program at the Clayton Valley project is set to have a duration of 120 days, with ACME Lithium Inc. continuously sending the obtained samples to an analysis lab enabling a shorter turn-around time to obtain the necessary information for a mineral resource estimate.

“This will be about a 120-day program. That's our estimated time. It could take a little longer. Obviously, we will be sending information to the lab, including core, also brine. We'll be analysing them in rolling batches as we send that information to an independent lab. We are excited to get results out, and hopefully, we have success with the drill bit.”

Shatford Lake project

The Shatford Lake project of ACME Lithium Inc. holds a land position of approximately 8,883 acres and consists of 21 claims. The project is located south of the Tanco Mine, owned by Sinomine Resource Group Co., Ltd. The mine is the world’s largest operating pollucite mine, producing lithium, caesium, tantalum, tin and rubidium. The project lies within the southern portion of the Bird River Greenstone Belt (BRGB) pegmatite fields, with the belt hosting various pegmatite deposits. The Lithium-Cesium-Tantalum (LCT) pegmatite fields of the belt are associated with granitic intrusions to structurally dilatant zones adjacent to major belt parallel shear zones. LCT pegmatite fields account for a fourth of the global lithium supply, the majority of tantalum supply and the entire global caesium supply.

Hansen explains that the Shatford Lake project neighbours the Tanco Mine, with the Tanco Mine being the only lithium producer within Canada.

“Our Shatford Lake project is about 1.5 km south of the Tanco mine, which is owned by a very large Chinese company called Sinomine. Those are LCT pegmatites that they're producing from, with caesium and tantalum. That mine has been in production off and on since 1969 and is the only place where lithium's currently being produced in Canada. Interestingly enough, we neighbour the only production in the US and here we are; we neighbour the only production in Canada.”

Throughout 2022, ACME Lithium Inc. conducted various exploration initiatives at the project including structural work and geophysical tests. The company was also able to sign an agreement with the Sagkeeng First Nation of the area, enabling it to conduct exploration drilling at the project.

“We did extensive summer work: mapping, structural work, geophysics, and some geochemistry. There were known pegmatites on the surface, and as part of that summer exploration program, we uncovered some new pegmatites. We spent all fall analysing the data. We went through the permitting process with the Manitoba government. I signed an agreement with the Sagkeeng First Nation, which is a very important agreement.”

ACME Lithium Inc. announced on the 11^th of January 2023, that it had commenced drilling at its Shatford Lake project. The drilling initiatives are planned to consist of 5,000 m of drilling, with various targets having been identified through the company’s 2022 summer exploration program.

Hansen explains that the company has various priority drill holes, with the company having permitted more than the announced 5,000 exploration drilling program.

“We've identified priority one, priority two and priority three drill holes. We've permitted significantly more than the 5,000 m that we announced. This is a phase one program; if we have success with the drill bit over this program, I will have the optionality to continue to drill for a longer period of time.”

Hansen explains that the initial program will consist of between 15 to 20 drill holes. ACME Lithium Inc. is well funded to continue the exploration drilling program, dependent on the assay results. The company also holds a flexible agreement with its drilling contractor enabling it to increase the size of the program.

“I expect that we will drill between 15 and 20 holes as part of this initial program, which could be expanded. We have that optionality, and we are funded to be able to drill for a longer period. We have that flexibility with our drilling contractor as well. We'll look for results here over the next, probably 75 to 120 days, when we'll have results from the lab. I am looking forward to hopefully having some success with the drill bit.”

Share price performance and future initiatives

ACME Lithium Inc. similar to its peers has seen a decline in its stock price in the past months. Hansen attributes the decline in share value to the instability of the metals market caused by the war in Ukraine as well as the company not publishing press releases.

“I think a number of juniors have come off over the course of this period. Obviously, we traded higher through the spring period and then when we saw the Ukraine war start, there was inflation and volatility in the market and we were exposed to some of that volatility. Since the summer, although we've been very busy behind the scenes, we haven't had a lot of material news out.”

Other factors that may have accredited to the decline in the company’s share price may have been early investors taking profit from their investment in the company as well as the decline in the Tesla share price.

Hansen believes that ACME Lithium Inc. provides investors with a value-creation opportunity. He explains that the company has seen no management changes and has only added to its potential through the initiation of two drill programs.

“We believe, actually, that this time is the most interesting time to be an investor. We have two programs where we're drilling. We've got cash in the bank. Nothing has changed corporately. We are as good as we've ever been, and if anything, I think it creates an opportunity for investors to participate. In fact, we're up so far this calendar year. We're showing green on the screen and we're moving in the right direction in 2023, so it's a good start.”

ACME Lithium Inc. plans to find strategic partners with whom it can advance its projects in 2023. The company is seeking partners for both its Fish Lake project, neighbouring the Rhyolite Ridge project, which the US government has announced USD$ 700 million in investments in as well as its Bailey Lake project.

To find out more, go to the ACME Lithium website