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 CEO provided an update on Lancaster’s recent exploration activities and upcoming milestones related to the Alkali Flat Lithium Brine Project near Lordsburg, New Mexico, USA.
Key highlights and upcoming milestones include:
Geophysics + Geology Study (July 2023): Following a comprehensive internal evaluation, our team successfully built upon our existing internal geological data geological data sets. This included initial findings from an aerial drone geophysics program and geochemical studies over the playa, laying the groundwork for our completed MT geophysics program and impending drilling operations.
Magnetotelluric (MT Survey) (Aug 2023): After reviewing several qualified companies, we selected KLM Geophysics, a leading geophysics firm with significant experience in lithium brine exploration, to conduct our MT Survey so Lancaster would have the best dataset to supplement our geology and inform our drilling locations. We received the results from our MT program in September 2023.
MT Interpretation and Drilling Locations (Sept 2023): Our experts interpreted magnetotelluric data to pinpoint optimal drilling locations, maximizing our chances of successfully finding subsurface concentrated lithium brines. Preliminary locations have been selected based on two highly conductive subsurface features found in the MT survey. Proposed locations have been used in support of both the BLM Plan of Operations application and the EMNRD Drilling application.
Drilling and Access Regulatory Applications Submitted (Sept 2023): We have formally submitted our drilling application to the New Mexico EMNRD, adhering to all regulatory requirements and best practices. An additional Plan of Operations application to the BLM was made in support of both the proposed drilling and the entire claim area MT program. Lancaster remains committed to minimal impact exploration.
BHP Xplor (Oct 2023): Recognizing New Mexico as a new frontier for lithium exploration and with the anticipation of a significant lithium discovery, we applied to the BHP Xplor program. This program offers a six-month accelerator and up to USD $500,000 in non-dilutive funding from BHP, aiming to unlock critical minerals.
Drilling Bids (Sept-Oct 2023): We invited estimates from reputable drilling companies, emphasizing safety, efficiency, and environmental stewardship. We are currently in the final process of selecting which drilling company to engage for our upcoming drilling program.
Detailed G+G Review (Oct-Nov 2023): Our geophysics and geology teams are continuously conducting thorough reviews to ensure all data aligns and informs our drilling strategy.
Drilling Approvals (Nov-Dec 2023): We are in communication with the New Mexico EMNRD, and we anticipate receiving all necessary drilling approvals in early 2024, clearing the way for us to commence drilling operations in February 2024.
Drilling Completed (Feb 2024): We aim to complete our maiden drilling program efficiently and safely, adhering to the highest industry standards with minimal/zero impact on all stakeholders.
Samples Collected and Analysis Underway (Feb 2024): During the drilling process, we will collect samples and submit them for mineral and fluid analysis to confirm the concentration of lithium within reservoir brine and drill cuttings.
DLE Technology Bidding and Sample Dispatch (March 2024): Engagements with leading Direct Lithium Extraction (DLE) technology providers are underway to ensure our lithium extraction process is both efficient, cost-effective, and environmentally responsible. Discussions are in progress with various DLE companies to secure sufficient brine samples for testing, aimed at determining the compatibility of DLE technologies with successfully extracted lithium brine from Alkali Flats.
Sample Results and NI 43-101 (Q2 2024): Upon receiving the sample analysis results, we will promptly refresh our NI 43-101 report, ensuring stakeholders have access to the most current and precise information.
Anticipated DLE Results (Q2 2024): We look forward to receiving the outcomes of our DLE technology trials, which will inform our extraction strategy and affirm our commitment to employing the most economical, effective, and sustainable lithium extraction practices.
“We are thrilled to share the significant progress we have made over the last few months and outline our strategic plans for the upcoming quarters,” says Penny White, Lancaster’s CEO and President. “Our team has worked diligently to ensure that each phase of our project has made valuable use of resources, and we are confident that our efforts will result in substantial value creation for our stakeholders.”
“As we forge ahead, our team remains dedicated to progressing the Alkali Flat Lithium Brine Project, championing innovation, and upholding the highest standards of environmental stewardship and community engagement,” concluded Penny White, CEO of Lancaster. “We are on a steadfast path towards achieving our objectives and cultivating enduring value for both our shareholders and the communities we serve.”
For a deeper dive, be sure to check out Chris Parry’s latest breakdown on Lancaster Resources.
The stock has printed new lows hitting $0.04. Selling pressure has not showed any sign of exhaustion yet. Bulls either want to see a large green candle, or a development of a range. $0.08 is the resistance zone the stock will need to break out of. Then watch for the trendline to be taken out.
