American Battery Metals Corporation (OTCMKTS:ABML) reported drilling results from its Railroad Valley TW-1 project in Nevada on Tuesday which show lithium values well above the threshold of commercial viability.
Composite drill cuttings revealed lithium values of up to 148.5 parts per million within the Volcanic and Middle Sandstone areas, and another interval showed values as high as 276 parts per million. As a baseline, the company said in a statement, 50 parts per million is considered commercially viable.
Shares surged Tuesday as a result, ending the day 33% higher at $0.07.
READ: American Battery Metals' Railroad Valley lithium project survey finds brine reservoir size surpasses original estimates
The drill hole reached depths of 3,004 feet, 500 feet deeper than initially expected.
The results are an affirmation of the company’s location in Nevada’s Railroad Valley where it owns 1,300 claims covering 26,000 acres of land. When considering land of that size, the company said, results like these are “cause for intense optimism and validates the possibility that Nevada can become a significant supplier of lithium.”
Additional tests this month will continue to refine the company’s picture of the conductive aquifer — a body of water containing groundwater — already identified in previous geophysical surveys.
—Updated to include stock movement—
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