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.
Today, the Company announced it has submitted applications to the State of New Mexico Energy, Mines, and Natural Resources Department (EMNRD) and Bureau of Land Management (BLM) to drill up to three wells targeting both shallow and deep conducive layers on its Alkali Flat Lithium Brine Project near Lordsburg, New Mexico.
The targets were identified by Lancaster’s geological team following the success of Lancaster’s recent MT (Magneto-Telluric) Geophysics program, which has identified zones of interest.
The MT results along with Lancaster’s recent exploratory and geochemical results have highlighted multiple high-priority drill locations believed to host lithium-rich aquifers. Results indicate a near-surface low resistivity highly conductive layer ~150m (490 ft) deep along with a deeper low resistivity highly conductive layer at ~760m (~2500 ft) subsurface.
The application to the EMNRD includes the maiden drilling program and a parallel, but separate, application to the BLM covers both drilling access and a subsequent MT geophysics program over the entire claim.
“We are very excited about moving forward with drilling both the shallow and deep targets after our MT Survey showed very clear subsurface zones of interest with high conductivity. The identified targets show clear opportunities for large aquifers containing concentrated lithium brine,” says Andrew Watson, Lancaster Resources’ VP, Operations and Engineering. “We are expecting our first drill hole to allow us to collect brine samples, along with rock cuttings or core, from targeted intervals, allowing us to determine the concentration of lithium and other minerals.”
During the drilling program, rock cuttings, core, and brine samples will be collected from selected intervals, with assay results expected to be available shortly after drilling completion.
The planned drilling and exploration program is being designed with a focus on minimizing environmental impact. Measures have been put in place to mitigate effects on the playa environment, water courses, and any historical and cultural artifacts.
Lancaster Resources has printed new 52 week lows hitting $0.085. Bulls will want to see signs that selling pressure is exhausting and buyers are stepping in. Yesterday’s large wick candle shows that there were some buyers in this area. A few more wick and/or large green bodied candles will do more to confirm this. If the stock fails to hold here, then new 52 week lows will be formed. For upside momentum, the stock would need a close above the $0.12 zone which is the previous lower high. This would also aid in getting a close above the downtrend line.
