Drill Permit Approval For Alkali Flat Lithium Brine Project

VANCOUVER - Lancaster Resources Inc. announced that the New Mexico Mining and Minerals Division (MMD) has provided Lancaster with a “Technically Complete Letter” regarding a permit for the Alkali Flat Lithium Brine Phase 1 drill program (the “Drill Permit”).

"The approval of our maiden drilling application is confirmation of our commitment to responsible, minimal impact exploration and the last major hurdle before launching our maiden drilling program at Alkali Flat," said Andrew Watson, VP Engineering & Operations. "We are one step closer to drilling the first well at Alkali Flat and proving the quality of the potential lithium brine deposit we believe is in the subsurface aquifers previously identified by our geophysics program."

Pursuant to §19.10.3.302 NMAC, the MMD has determined that the application for the Alkali Flats Lithium Brine Phase 1 exploration project, submitted to MMD in October 2023, Permit No. HI023EM, operated by Lancaster’s wholly-owned subsidiary, Lancaster Lithium Inc., is technically complete.

Lancaster will now submit a financial assurance instrument, such as a letter of credit, for USD $64,000, for review by MMD and the U.S. Bureau of Land Management (“BLM”). Once the financial assurance is in place, MMD will provide the Drill Permit to Lancaster Lithium for review and signature.

Lancaster’s exploration work at Alkali Flat last year included geochemical sampling, which yielded highly anomalous concentrations of lithium in playa sediments (with a range of 69.6 to 147.9 ppm Li), a UAV-bourne detailed magnetometry (drone) survey, and a Magneto-Telluric (MT) geophysics program, which revealed highly anomalous conductivity in aquifers 100 - 200 metres deep and 650 - 750 metres deep. The combined results highlighted multiple high-priority drill locations believed to host lithium-rich aquifers.

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. The Drill Permit area lies about 8 miles north of the renowned 15MW Lightning Dock Known Geothermal Resource Area (KGRA).