American Battery Metals Corporation (OTCMKTS:ABML), the Nevada focused battery metals explorer, told investors Monday that a "huge and undefined reservoir" has been found at its Railroad Valley project.
Zonge International of Reno conducted the geophysical survey over a square mile, showing two large so-called conductive zones, which could indicate lithium in both shallow clay deposits and in deeper brines.
CEO Doug Cole said in a statement that the report was "excellent" for the company.
"We have said in the past that we have had 1 million metric tons of lithium in the whole valley and over 10 billion barrels of sodium carbonate, which now looks to be conservative," said Cole. "We are very excited that we will now exceed those expectations in the near future through additional production wells and a formal reserve report."
The firm holds claims over 26,000 acres in Railroad Valley in Nye county, which lies around 112 miles northeast of Clayton Valley.
Cole said the group would now start to increase its geophysics 'tremendously' and to expand its programs over the next few months. It aims to drill three production wells after its new geophysics is completed.
"The geophysics pinpoints exactly where we should drill and continue to drill. We do expect to go a lot deeper as this reservoir is very deep, in fact we don't know how deep and won't until we drill further and further," said Cole.
Notably, one of the two conductive zones identified was recently drill tested to a depth of 3,000 feet and results of the samples are expected within the next six weeks.
In Toronto, shares were unchanged at C$0.28. In New York, they were at US$0.21
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