Lancaster Resources (LCR.C) is a junior explorer focusing on transition metals to take advantage of the global shift towards decarbonization and electrification. The goal is to produce climate-positive lithium. The current focus is on its Alkali Flat Project, located in southwestern (and mining friendly) New Mexico, USA, within the Animas Valley.
The Company announced that it had engaged KLM geophysics to conduct a magneto-telluric (MT) survey at its Alkali Flat Lithium Project in Lordsburg, New Mexico to target highly conductive statigraphic layers to further delineate drill targets in a highly prospective area on the NE part of the property on August 3rd 2023. The property is adjacent to Arizona Lithium’s Lordsburg Brine Project.
Today, Lancaster announced KLM Geoscience has successfully completed the detailed MT program including data acquisition and inversions. The MT survey consisted of three east-west lines with ~500m spacing between receivers and lines.
The results have highlighted multiple high priority drill locations believed to host lithium-rich aquifers. Results indicate a near surface low resistivity layer ~150m deep along with a deeper low resistivity layer at ~660m sub-surface. Results also confirm the N-S trending basin continues from Arizona Lithium claims through Lancaster’s property.
Lancaster is now preparing regulatory and permitting applications for a Phase 1 Drilling program in late 2023. Lancaster is preparing applications to the BLM and EMNRD (New Mexico) for three wells and a follow up full claim area geophysics program (2024).
“The results are extremely encouraging and we are planning to proceed with further exploration and development work. The successful MT program strengthens our view on the opportunity of Alkali Flats containing a concentrated lithium subsurface aquifer. Submitting our regulatory applications for follow up drilling is our next priority as we continue to develop Alkali Flats to power the energy transition,” remarks Andrew Watson, Vice President of Engineering and Operations at Lancaster.
The Alkali Flats Lithium Project and the MT survey target area lie about 8 miles north of the renowned 15MW Lightning Dock Known Geothermal Resource Area (KGRA). The company will continue to review co-production opportunities with clean geothermal power on the claim area to provide clean power for future lithium development. Additionally, the target area is immediately adjacent to Arizona Lithium’s Lordsburg Brine Project.
For more fundamental information about the Company and the Project, be sure to check out Chris Parry’s recent deep dive.
The stock is once again retesting support at $0.12. This is happening after a brief bounce after the stock printed new 52 week lows hitting $0.11. We should expect to see buyers enter here but we must wait for a daily candle close to provide us with a signal to act upon. We would want to see a large green bodied candle or a candle with a large wick to indicate that buyers are entering.
If we fail to hold here then the stock is likely to print new 52 week lows taking out $0.11. For some upside momentum, the stock needs a close above the $.15 zone which is the previous lower high. This would also see a close above our downtrend line.
