VANCOUVER, June 6, 2017 /CNW/ - One World Minerals Inc. (OWM-CSE) signs a Letter of Intent with GeoXplor Corp. to purchase a 100% property interest subject to a 3 percent royalty in the CC Claim Group that adjoins Albemarle's producing Silver Peak property to the south and Pure Energy Minerals' exploration property to the east (which formerly belonged to Lithium X).
Property Geology
The United States Geological Survey in 1977 drilled a hole on the Property to 395 feet. The hole cut mostly potential aquifer sands and conglomerates with some limestones and clays. Their spot sampling returned analyses of up to 36 ppm lithium in the fluids and 209 ppm lithium in the sediments. Those results are of historical interest only as the sampling and analytical methods are not known.
An earlier gravity survey shows the 1380-acre Property lies over a gravity low interpreted to represent valley sediments up to 1800 feet thick. That gravity low is continuous across the northern valley to the area to where Lithium X exploration drilling about a mile east reportedly shows a very porous unit interpreted to represent a landslide mass from the east which is about 300 feet thick and analyzes up to 60 – 65 ppm lithium in brines.
The Property is a logical exploration target for testing both the results from the US Geological Survey historical drilling in the upper section and the presence of other aquifers and the very porous unit which exists at depth to the east.
Initial Programs
The goal of the initial round of drilling will be to test the presence of a potentially economic thickness and grade of lithium brines on the Property. Because salty brine waters are good conductors, they could give a good response when subjected to an electromagnetic field. Exploration will begin with a ground CSMT/MT survey to identify conductivity peaks. A drill hole will be located at the conductivity peak. The drill hole is projected to a 2,000-foot depth based on the known gravity survey. The initial program is budgeted at $US 250,000.
Second Program
Success will trigger the second phase of drilling with the goal of providing the data to calculate an inferred resource. A second hole will be drilled and both holes cased for pump tests. The second program is budgeted at $500,000 with a targeted completion of September 30, 2017.
Recent Events at Clayton Valley
Four significant events have brought attention to Clayton Valley:
1) | Albemarle Corp. purchased Rockwood's lithium assets including the Silver Peak Mine operations for $US 6.2 billion; |
2) | Pure Energy Minerals (PE) reported on July 29, 2015 an inferred resource of 816000 metric tonnes of lithium carbonate equivalent grading 37 to 370 mg/liter. In addition, as announced on May 9, 2017, there are positive indications of higher lithium concentrations in deeper sampling; |
3) | Several aggressive exploration and development programs are underway by other companies; and |
4) | Further consolidation with Lithium X (LIX) buying 19.99% of Pure Energy (PE) |
Terms of the Letter of Intent with GeoXplor
- To make an initial payment of $US 108,500 and then on each anniversary date for four years a payment of $US 100,000;
- To complete a minimum work program of $US 2,100,000 over four years;
- To complete a pre-feasibility survey before the fourth anniversary date;
- To make a payment of $ US 500,000 in either cash or shares on completing an inferred resource;
- To make a payment of $US 1,000,000 in cash or shares on completing a preliminary economic assessment (PEA);
- To issue a total of seven million shares (subject to CSE approval) over four years with the initial issuance of one million shares on closing;
- To have GeoXplor retain a 3% royalty with a buy down to 1.5% for $ US 3 million;
- To pay to GeoXplor and advance royalty payment of $US 250,000 on the fifth and sixth anniversaries and $500,000 on the seventh, eighth and ninth anniversary dates which are credited back to OWM from 30% of actual production;
- To be in commercial production within ten years; and
- To engage GeoXplor as the operator.
Doug Fulcher, the Company's CEO and President, noted that, "the agreement with GeoXplor, the most experienced explorer in the region, is a strategic step for OWM as the Clayton Valley will receive more world attention over the next several years and the results of the CC exploration will be reviewed in that light!"
William Feyerabend, CPG, is a Qualified Person as defined by NI 43-101, has approved the technical disclosure as stated in this news release.
On behalf of the Board of Directors of One World Minerals Inc.,
"Douglas Fulcher"
Douglas Fulcher, CEO and President
Forward-Looking Information: This press release may include forward looking information within the meaning of Canadian securities legislation concerning the business of the OWM. Forward looking information is based on certain key expectations and assumptions made by the management of the OWM regarding the proposed exploration program. Although OWM believes that the expectations and assumptions on which such forward looking information is based are reasonable, undue reliance should not be placed on the forward-looking information because OWM can give no assurance that they will prove to be correct. Forward looking statements contained in this press release are made as of the date of this press release. OWM disclaims any intent or obligation to update publicly any forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from the those anticipated in such statements, important factors that could cause actual results to direr materially from the company's expectations include: (I) potential comments from regulators which may delay; (II) inability of OWM to execute its business plan and raise the financing required to implement the exploration program; and (III) risks and market fluctuations common to the mining industry and lithium sector in particular. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, some of which are beyond the control of the OWM. The reader is cautioned not to place undue reliance on any forward-looking information contained in this press release.
SOURCE One World Minerals Inc.
View original content: http://www.newswire.ca/en/releases/archive/June2017/06/c7106.html
For additional information contact either: info@oneworldminerals.ca or Steve McGuire, Steve@oneworldminerals.ca, 604-762-7869.