In January 2016, Eureka entered into an agreement with Nevada Sunrise Gold Corporation (“Nevada Sunrise”) (TSXV: NEV), through which it acquired a 50% interest in the Gemini Lithium Project (“Gemini”). In August 2016, Nevada Sunrise optioned its 50% interest to Advantage Lithium Corp. (“Advantage Lithium”) (TSXV: AAL), who became Eureka’s joint venture partner on the Gemini Lithium Project, with Eureka serving as the operator.
The Gemini Lithium Project is located in the Lida Valley, Nevada, and consists of 247 placer claims totaling 4,940 acres. The exploration strategy at Gemini is to target desert basins that exhibit similar geological and geophysical characteristics to the Clayton Valley basin, where lithium brines are known to accumulate in the faulted sub-basins, and which hosts North America’s only producing lithium mine at Silver Peak, 26 miles to the northwest. Such sub-basins can be delineated by gravity surveys that detect strong gravity lows.
A detailed gravity survey carried out at Gemini in 2012 and 2013, indicated strong gravity lows at Gemini within two faulted sub-basins approximately 4.5 miles apart and each interpreted to be hundreds of metres deep. Eureka and Nevada Sunrise made the decision to acquire the claims at Gemini after reviewing the geophysical survey results in conjunction with the favourable local geology, namely the late Miocene felsic volcanic tuffs adjacent to Gemini. These rocks could provide a source of lithium for trapped ground-waters within the sub-basins.
In February, 2016, Eureka and Nevada Sunrise received the results from a time-domain electromagnetic survey (“TDEM”) carried out at Gemini. The reconnaissance moving-loop TDEM survey over Gemini West and Gemini East detected conductive zones within the sub-basins defined by the previous gravity survey. The results gained from the TDEM survey could be interpreted to be conductive brines at depth well below the non-conductive alluvium sediments at surface. A conductive layer 150–250 metres deep appears to cover most of Gemini West and Gemini East, and several isolated strong conductive zones were interpreted at depths from 400 to 600 metres. The conductive layers and zones may be indicative of brine solutions in porous aquifers and traps within each sub-basin. In March 2016, two additional TDEM lines were surveyed which detected similar conductive zones within Gemini West and Gemini East.
The companies reviewed the results of the two TDEM surveys to model the size and continuity of the conductive zones and defined several drill targets. The companies have received a drill permit for Gemini from the Nevada Bureau of Land Management. Bonding is in place and drill pads have been built for two drill holes, both at Gemini West, which are scheduled to be drilled in Q2/Q3 of 2017.