Next Investors logo grey

Caeneus receives permits for Lida Valley drilling program

Published 04-OCT-2016 12:26 P.M.


2 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

Caeneus Minerals (ASX: CAD) informed the market on Monday morning that it had received approvals from the Bureau of Land Management, enabling it to commence a drilling program at the group’s Lida Valley lithium brine project located in Nevada.

Following approval, management said that it is now in advanced discussions with potential drilling contractors who have significant experience in exploring for brines in the Nevada area, including work for Rockford on the Silver Peak Mine, and recently for Iconic Minerals, with the latter being particularly significant in terms of recent developments at its Bonnie Claire project.

CAD noted a fortnight ago that Iconic had announced geochemical results of drill cuttings at Bonnie Claire containing highly anomalous lithium. The Bonnie Claire property is located immediately to the north of CAD’s Scotty’s South project, and the fact that they have discovered lithium in drill cuttings of up to 1410 ppm lithium has provided enthusiasm that CAD’s project may have similar geological features.

In particular, management noted that the broader Sarcobatus Flats region was 1.5 times larger than nearby Clayton Valley, reportedly hosting a large lithium brine system.

However, at this stage CAD remains a very early stage exploration play in the lithium sector and investment decisions should not be made on the basis of prospective exploration success. Seek professional advice if considering CAD for your portfolio.

As CAD pointed out, even news flowing from its peers needs to be fully assessed as it needs to be proven that there is the existence of lithium contained within brines from leaching into fluids over time.

With regard to CAD’s Lida Valley asset, it is underlain by valley fill sediments derived from lithium rich volcanic rocks that compose parts of the surrounding hills. The volcanic rocks and derived basin-fill sediments include lithium rich volcanic tuff and ash beds. Management sees the environment as ideal for the formation and accumulation of lithium evaporates and brines.

More specifically, it interprets that Montezuma Peak which lies between the Clayton Valley’s Silver Peak Mine and Lida Valley is representing a potential source of lithium within the region. On this note, Montezuma Peak has been the interpreted source for the lithium located in brine discoveries in the Clayton Valley and it interpreted that Lida Valley represents the southern migration of this flow.

These underlying assumptions contribute to the group’s strategy regarding its drilling program which will include five drill holes as outlined below. However, management said that it will be progressively analysing data from each hole drilled and the exact location of subsequent drill holes may change throughout the course of the program.

Next Investors Image



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.