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 Company recently also picked up two properties near known uranium deposits.
Today, the Company announced that the United States Department of the Interior Bureau of Land Management (BLM) has provided Lancaster with approval for the Plan of Operations regarding the Alkali Flat Lithium Brine Phase 1 drill program.
“The BLM approval of our Plan of Operations application is further proof of Lancasters’ vision of providing sustainable and minimal impact critical minerals for the energy transition,” says Andrew Watson, Lancaster’s VP Engineering & Operations. “We are rapidly progressing to drilling our maiden exploration well at Alkali Flat and showing the significant potential lithium brine deposit in the subsurface aquifers identified by our 2023 geophysics program.”
Pursuant to BLM regulations 43 CFR 3715, the Plan of Operations submitted to the BLM in September 2023 has been formally approved. This approval includes the potential to drill up to three wells on the playa allowing for an expedited regulatory process pending results of the maiden well in Q2 2024.
Lancaster must submit a financial assurance instrument, such as a letter of credit, for USD $63,783 to be jointly held by the BLM and the New Mexico Mining and Minerals Division (MMD). Once the financial assurance is received and approval from the New Mexico Office of the State Engineer is received, Lancaster will be able to access and drill on the playa.
The Alkali Flat Lithium Project targets a closed-basin brine deposit in a playa lake setting. The project is conveniently situated next to a major rail line and interstate highway, providing excellent access. Closed basin brine deposits contain an estimated 58% of the world’s lithium resources. The only location of lithium production currently active in the United States is the brine operation at Clayton Valley, Nevada.
The stock is flat on the day at time of writing on today’s news.
The downtrend is continuing with the stock breaking support at $0.04. New record lows were printed at $0.025 before the stock saw a bit of a bounce. A recovery of $0.04 is required in order to begin a possible shift in trends. Drilling is the upcoming catalyst.
