Usha Resources Confirms Brine-Forming Environment with Second Drill Hole at Jackpot Lake Lithium Brine Project

Rhea-AI Summary

Usha Resources Ltd. has reported significant findings from its second drill hole, JP22-2, at the Jackpot Lake Lithium Brine Property in Nevada. Drilling has reached 231 meters, revealing similar stratigraphy and evaporite crystallization as seen in the first drill hole, JP22-1. This supports the presence of a brine-forming environment in the Dry Lake Basin. Usha has expanded its claims from 140 to 442, covering approximately 35.3 square kilometers. The project aims to define a 43-101 resource, with historic samples indicating promising lithium concentrations. CEO Deepak Varshney expressed optimism about continuous drilling as the project progresses.

Positive

• Drilling results indicate a consistent stratigraphy and evaporite crystallization, supporting lithium brine potential.
• Expansion of claims from 140 to 442 supports strategic control over the area.
• Historic soil samples show lithium concentrations up to 300 ppm, higher than the average at Albemarle's Silver Peak.

Negative

• None.

Drilling To-Date Reveals Similar Stratigraphy and Consistent Evaporite Crystallization Across Multiple Drill Holes

VANCOUVER, BC / ACCESSWIRE / February 21, 2023 / Usha Resources Ltd. ("USHA" or the "Company") (TSXV:USHA)(OTCQB:USHAF)(FSE:JO0), a North American mineral acquisition and exploration company focused on the development of drill-ready battery and precious metal projects, is pleased to provide this update on the second drill hole ("JP22-2") of its maiden drill program at the Jackpot Lake Lithium Brine Property ("Project") located in Clark County, Nevada. The drill is now at the 231‑metre level and its exploration team has encountered similar stratigraphy to the core observed from first hole ("JP22-1"), where multiple zones of evaporite crystals are present as interbeds, veining, and inclusions within lacustrine sediments comprising clays, silts, and sands.

The presence of evaporite crystals within both JP22-1 and now JP22-2 further supports the presence of a brine forming environment throughout the Dry Lake Basin as crystallization of evaporites would not occur in a freshwater system and JP22-2 is located approximately 2.75 kilometres north-northwest of JP22-1.

For information on the results of its first successfully completed drill hole JP22-1, please see the Company's news release dated February 7, 2023).

Furthermore, based on the evidence observed, the Company believes that there is a strong potential for similar stratigraphy to be observed within its newly staked claims whereby the Company strategically expanded its control from 140 to 442 claims totalling approximately 35.3 square kilometres or 8,714 acres (see Usha Resources' news release dated February 16, 2023).

Figure 1 - Images of core collected from JP22-2. Multiple zones of evaporite crystals are present as interbeds, veining, and inclusions. The presence of evaporite crystals supports the presence of a brine forming environment throughout the Dry Lake Basin as crystallization of evaporites would not occur in a freshwater system.

"We are pleased with the drilling completed so far in JP22-2" said Deepak Varshney, CEO of Usha Resources. "Demonstrating continuity within the first two drill holes of our project is a key finding that continues to support that Dry Lake, within which Jackpot is hosted, is a similar geologic setting to that of Clayton Valley. These evaporites show that the basin has undergone a long geologic period of successive accumulation and concentration events which is the model for deposition at Albemarle's Silver Peak Nevada Lithium Mine. The information identified continues to help us build our model of the basin and we look forward to seeing the stratigraphy within the rest of our second hole as drilling continues."

Jackpot Lake Lithium Brine Property

USHA's Jackpot Lake Lithium Brine Property is located within Clark County, 35 kilometres northeast of Las Vegas, Nevada, and is comprised of 442 optioned and staked mineral claims that total 8,714 acres (approximately 35.3 km²).

The Project's geologic setting is similar to that of Albemarle's Silver Peak Nevada Lithium Mine, the only producing lithium mine in North America, which has operated continuously since 1966, where sediments from lithium‑rich surrounding source rocks accumulate and fill the deposit leading to a potential concentration of lithium brine due to successive evaporation and concentration events. Considering the elevated lithium concentrations identified in historic soil samples, such events could theoretically concentrate lithium as rainwater passes through these materials, developing enriched brines at depths.

The Company has permitted 2,700 metres over six holes and has commenced a maiden drill program with the goal of defining a 43-101 resource. The Project target was identified based on geophysical studies and 129 core samples collected by the USGS with an average lithium value of 175 ppm with a high of 550 ppm. Samples from the first hole of its drilling program have identified lithium is present at a grade of up to 300 ppm within ten samples collected from shallow surface soils (<442 ft). The present average grade for Albemarle's project is approximately 121 ppm.

Modelling indicates that the Project target comprises the entirety of the Company's core optioned claim block (2,800 acres; 11.3 km²) and is open in all directions for expansion. The target is shallow, predominantly above bedrock depths of 600 metres, and is approximately 450 metres thick. The total basin within which the target is situated is estimated to be approximately 10,900 acres of which the Company now controls 8,714 acres.

The Project's Qualified Professional (QP) is Michael Rosko, a professional geologist with over 30 years of experience, with extensive experience with world-class lithium brine projects including Tier 1 projects such as Galaxy's Sal de Vida Deposit, Millennial Lithium's Pasto Grandes Deposit, and Lithium America Corp's Cauchari-Olaroz Deposit.

Figure 2 - Conceptual basin model illustrating the theoretical location of borehole JP22-01 with respect to the deposition anticipated in a geologic setting as that of Clayton Valley. The stratigraphic column on the left, taken from Pure Energy's Preliminary Economic Assessment, shows the stratigraphy of borehole CV-8, located in a similar position within the Clayton Valley basin. The general stratigraphy of CV-8 consisted of lacustrine sediments (clays, silts) overlaying a zone of sand and conglomerate where superior grades of lithium were identified which is similar to the stratigraphy observed in JP22-01.

Qualified Person

The technical content of this news release has been reviewed and approved by Mr. Seth Cude, P.G., CPG. RM, M.Sc., a qualified person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101").

About Usha Resources Ltd.

Usha Resources Ltd. is a North American mineral acquisition and exploration company focused on the development of quality battery and precious metal properties that are drill-ready with high-upside and expansion potential. Based in Vancouver, BC, Usha's portfolio of strategic properties provides target-rich diversification and consist of Jackpot Lake, a lithium project in Nevada; Nicobat, a nickel‑copper‑cobalt project in Ontario; and Lost Basin, a gold-copper project in Arizona. Usha trades on the TSX Venture Exchange under the symbol USHA, the OTCQB Exchange under the symbol USHAF and the Frankfurt Stock Exchange under the symbol JO0.

USHA RESOURCES LTD.

"Deepak Varshney" CEO and Director

For more information, please call Tyler Muir, Investor Relations, at 1-888-772-2452, email tmuir@usharesources.com, or visit www.usharesources.com.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-looking statements:

This news release may include "forward-looking information" under applicable Canadian securities legislation. Such forward-looking information reflects management's current beliefs and are based on a number of estimates and/or assumptions made by and information currently available to the Company that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors that may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. Readers are cautioned that such forward-looking information are neither promises nor guarantees and are subject to known and unknown risks and uncertainties including, but not limited to, general business, economic, competitive, political and social uncertainties, uncertain and volatile equity and capital markets, lack of available capital, actual results of exploration activities, environmental risks, future prices of base and other metals, operating risks, accidents, labour issues, delays in obtaining governmental approvals and permits, and other risks in the mining industry.

The Company is presently an exploration stage company. Exploration is highly speculative in nature, involves many risks, requires substantial expenditures, and may not result in the discovery of mineral deposits that can be mined profitably. Furthermore, the Company currently has no reserves on any of its properties. As a result, there can be no assurance that such forward-looking statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements.

SOURCE: Usha Resources Ltd.

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FAQ

What are the latest findings from USHAF's drilling at Jackpot Lake?

The second drill hole, JP22-2, reveals similar stratigraphy and evaporite crystallization to the first hole, indicating a brine-forming environment.

How many claims does Usha Resources control now?

Usha Resources has expanded its claims from 140 to 442, totaling approximately 35.3 square kilometers.

What lithium concentrations were identified in the recent drilling results?

Recent drilling has identified lithium concentrations in historic samples of up to 300 ppm.

What is the goal of Usha Resources' drilling program?

The goal is to define a 43-101 resource at the Jackpot Lake Lithium Brine Property.