Next Investors logo grey

ABR adds an additional 13.6km2 to its borate, lithium projects

Published 23-JUL-2018 12:05 P.M.


3 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.

Click Here to View Latest Articles

American Pacific Borate and Lithium (ASX:ABR) has this morning announced that the vendor of the Salt Wells North and South Borate and Lithium Exploration Projects in Nevada, USA, has agreed to transfer 168 additional claims under the terms of the existing Earn In agreement.

The additional claims cover an area of 13.6km2 and will connect the two existing projects. The combined project now covers an area of 36km2 with surface salt samples in the northern area recording up to 810ppm lithium and over 1% boron (over 5.2% boric acid equivalent).

CEO Michael Schlumpberger commented on today’s development, stating: “The Salt Wells Borate and Lithium Exploration Projects contain a lot of the unique characteristics of boron and lithium discoveries worldwide, including an arid climate, a closed basin containing a playa (dry lake bed), and suitable source rocks.

“Aside from salt surface sampling that recorded some very high grade results (up to 810ppm Lithium and over 1% Boron), no modern exploration has been conducted on the project area. The consistently strong lithium and boron grades across the surface salt samples make this a very exciting opportunity in a global lithium and boron context that now has a lot more scale.

“Importantly, the additional 13.6km2 falls under our existing modest earn in agreement and remains consistent with our stated objective to become a globally significant producer of borates.”

However, there is still a lot of work to do before ABR meets this stated aim, so if considering this stock for your portfolio seek professional financial advice.

The additional claims have been added to the projects under the Earn In agreement the company announced on 25 May 2018. Under the terms of the agreement, ABR may spend US$3 million on the projects over a five-year period, with modest expenditure commitments required in the first two years.

The company is also required to pay all claim-related expenditure which is estimated to be US$500,000 over the five year period. Once in commercial production, ABR will be required to make a one-off payment of US$1 million and an ongoing royalty of 3% of gross revenues.

Initial exploration program

The projects’ area contains a lot of the unique characteristics of lithium brine discoveries worldwide. Initial activities will include 16km of magneto-tellurics (MT) lines to determine basin structure and detect if brines are present in the basin, with six shallow drill holes to follow.

The program has been designed with the company’s technical advisor Jerry Aiken, an industrial minerals expert with over 45 years’ industry experience in mostly borate and lithium projects including nearly 30 years in the Rio Tinto Borates Exploration Group.

More on the Salt Wells projects

The Salt Wells projects are located in Churchill County, Nevada, USA. The projects are within short proximity to major highways and within 25km of the town of Fallon.

The projects lie in what is believed to be an internally drained, fault bounded basin that appears similar to Clayton Valley, Nevada, where lithium is currently produced by Abermarle Corporation — the only current production source of lithium in the USA.

The basin covers an area of around 110 km2. Borates were produced from surface salts in the 1800s from the Salt Wells Northsite. With the exception of recent surface salt sampling from the Salt Wells North project, no modern exploration has been completed.

Project Location Map highlighting additional claims

General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.