Lancaster Resources Receives BLM Drilling Approval for Alkali Flat Lithium Brine Project

Rhea-AI Summary

Lancaster Resources has received approval from the U.S. Bureau of Land Management (BLM) for its Alkali Flat Lithium Brine Phase 1 drill program. This follows an earlier permit approval by the New Mexico Mining and Minerals Division on April 30, 2024. The BLM approval includes the potential for drilling up to three wells, with the maiden well expected in Q2 2024.

The Plan of Operations was submitted in September 2023 and includes provisions for access, safety, and environmental protection. Lancaster must submit a financial assurance of $63,783 to the BLM and MMD before drilling. The Alkali Flat Lithium Project targets a closed-basin brine deposit, strategically located near major transport routes and 8 miles north of the Lightning Dock Known Geothermal Resource Area. This project aims to tap into a significant lithium resource, which is critical for the energy transition.

Positive

• BLM approval for drilling up to three wells boosts project viability.
• Permit from New Mexico Mining and Minerals Division supports project progress.
• Strategic location near major transport routes accelerates logistics.
• Proximity to Lightning Dock Known Geothermal Resource Area may offer synergies.
• Targeting a closed-basin brine deposit could tap into significant lithium resources.

Negative

• Financial assurance of $63,783 needed for regulatory compliance.
• Pending approval from New Mexico Office of the State Engineer required.
• Conditional requirements for access, safety, and environmental protection may add operational complexity.

VANCOUVER, British Columbia, May 15, 2024 (GLOBE NEWSWIRE) -- Lancaster Resources Inc. (CSE:LCR) (OTCQB:LANRF) (FRA:6UF0) (“Lancaster”) announces that the United States Department of the Interior Bureau of Land Management (“BLM”) has provided Lancaster with approval for the Plan of Operations regarding the Alkali Flat Lithium Brine Phase 1 drill program. This follows permit approval granted by the New Mexico Mining and Minerals Division (“MMD”), as announced on April 30, 2024.

"The BLM approval of our Plan of Operations application is further proof of Lancasters’ vision of providing sustainable and minimal impact critical minerals for the energy transition,” says Andrew Watson, Lancaster's VP Engineering & Operations. "We are rapidly progressing to drilling our maiden exploration well at Alkali Flat and showing the significant potential lithium brine deposit in the subsurface aquifers identified by our 2023 geophysics program."

Pursuant to BLM regulations 43 CFR 3715, the Plan of Operations submitted to the BLM in September 2023 has been formally approved. This approval includes the potential to drill up to three wells on the playa allowing for an expedited regulatory process pending results of the maiden well in Q2 2024. In addition to the approval are conditions for access, safety, and protecting the environment that the BLM and Lancaster have worked very closely on. Lancaster intends to meet or exceed all requirements to ensure the safety and protection of the environment and all stakeholders.

As previously released, Lancaster must submit a financial assurance instrument, such as a letter of credit, for USD $63,783 to be jointly held by the BLM and MMD. Once the financial assurance is received and approval from the New Mexico Office of the State Engineer is received, Lancaster will be able to access and drill on the playa.

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).

Closed basin brine deposits contain an estimated 58% of the world’s lithium resources. The only location of lithium production currently active in the United States is the brine operation at Clayton Valley, Nevada.

Qualified Person

Andrew Watson, P.Eng., a qualified person for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Projects, has reviewed and approved the scientific and technical information contained in this news release. Mr. Watson is the VP, Engineering and Operations for Lancaster.

About Lancaster Resources Inc.

Lancaster Resources (CSE:LCR | OTCQB:LANRF | FRA:6UF0) is engaged in exploring lithium, and other critical minerals. Its Alkali Flat Lithium Project, in Lordsburg, New Mexico, USA, spans ~5,200 acres and comprises 260 mineral placer claims which cover the heart of the Alkali Flats playa near Lordsburg, Mexico where Lancaster is exploring a below-surface lithium brine target. Lancaster’s goal at Alkali Flat is to produce Net-Zero Lithium through the use of direct lithium extraction (DLE) technology and solar power. Lancaster is also collaborating to deploy advanced satellite hyperspectral acquisition, geospatial data aggregation, and AI-driven predictive modelling services exploration.

Lancaster’s project portfolio includes 100% ownership of the Piney Lake Gold Property in Saskatchewan and rights to acquire the Trans-Taiga Lithium Property located within the James Bay lithium district of Quebec. Lancaster also holds a 100 percent interest in the Catley Lake and Centennial East Uranium projects in the Athabasca basin in Saskatchewan, Canada. It also has a minority interest in Nelson Lake Copper Corp., an unlisted reporting issuer which owns 100 percent of the Nelson Lake Copper Project in Saskatchewan, Canada. Guiding Lancaster's journey is a skilled management and technical team with collective involvement in over 40 mineral discoveries and endowed with extensive experience in the creation of lithium brine targets and the exploration and development of exploration projects across Canada, the American West, Mexico, and South America.

Penny White, President & Chief Executive Officer, Lancaster Resources Inc.
penny@lancasterlithium.com
Tel: 604 923 6100

www.lancaster-resources.com

The Canadian Securities Exchange has not reviewed, approved nor disapproved the contents of this news release.

Cautionary Statement Regarding Forward-Looking Statements

Certain statements contained in this press release constitute forward-looking information. These statements relate to future events, or Lancaster’s future performance. The use of any of the words “could”, “expect”, “believe”, “will”, “projected”, ”estimated” and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on Lancaster’s current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. In particular, the ability of Lancaster to execute its exploration plans, ability to enter into a long form agreement for the acquisition of the Trans Taiga Lithium Propety, retain key personnel, identify, acquire, explore, and develop high-quality mineral-rich properties and integrate sustainable energy sources and innovative technologies for climate-positive resource production constitute forward-looking information. Actual results and developments may differ materially from those contemplated by forward-looking information.

Readers are cautioned not to place undue reliance on forward-looking information. The statements made in this press release are made as of the date hereof. Lancaster disclaims any intention or obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.

FAQ

What approval did Lancaster Resources receive for the LANRF stock?

Lancaster Resources received BLM approval for the Alkali Flat Lithium Brine Phase 1 drill program.

When did Lancaster Resources get the permit from the New Mexico Mining and Minerals Division?

The permit was granted on April 30, 2024.

How many wells can Lancaster Resources drill at Alkali Flat?

Lancaster Resources is approved to drill up to three wells.

What financial assurance must Lancaster Resources submit for drilling?

Lancaster Resources must submit a financial assurance of $63,783.

When is the maiden well expected to be drilled at Alkali Flat?

The maiden well is expected to be drilled in Q2 2024.