Gemini Lithium

The Gemini Lithium Project (“Gemini”) consists of 582 unpatented lode and placer claims totaling approximately 5,760 acres (2,390 hectares) and located in the Lida Valley approximately 6 miles (10 kilometres) east of the town of Lida, Nevada. Nevada Sunrise acquired Gemini by claim staking in 2015 with no applicable royalties and currently holds a 100% interest in the project. The Company expanded the size of the project by staking new unpatented placer claims in March 2022 and 288 unpatented lode claims in April 2022. Gemini is situated adjacent to the Gold Point Solar Energy Zone, a Bureau of Land Management land reserve set aside for solar and wind power generation projects until 2033. 

Gemini Lithium Project, Lida Valley, Nevada

The Lida Valley is a flat, arid basin with a similar geological setting to the better-known Clayton Valley basin where Albermarle Corporation operates the Silver Peak lithium brine mine, which has operated continuously since 1966. In 2015, Nevada Sunrise adopted an exploration strategy targeting desert basins, or playas, that exhibit similar geological and geophysical characteristics to the Clayton Valley basin where brines containing economic contents of lithium are known to accumulate in faults and porous lithologic traps in sub-basins.  Such sub-basins can be delineated by gravity surveys that detect strong gravity lows. 

Future exploration at Gemini is complemented by the Company’s 80.09 acre/feet/year water right, a pre-requisite for the exploration and development of lithium brine projects in Nevada. 

Previous ground gravity surveys in the Lida Valley area were widely-spaced and limited in scope, however in 2012 and 2013 a geological research team led by Dr. John Oldow of the University of Texas, Dallas collected approximately 500 gravity measurements along 7 transects crossing the Lida Valley.  The detailed gravity survey results indicated significant gravity lows within two, faulted sub-basins approximately 7 kilometres (4.5 miles) apart, each interpreted to be hundreds of metres deep. Nevada Sunrise made the decision to acquire claims covering the available land after reviewing the geophysical results in conjunction with favourable local geology, namely late Miocene felsic volcanic tuffs adjacent to Gemini. These rocks provide the source of lithium for trapped, lithium-rich saline ground-waters (brine) within the sub-basins. Drill pads, access roads and an active drilling permit are in place at Gemini.
 
Two separate follow-up TDEM surveys over Gemini carried out in early 2016 by Nevada Sunrise each detected conductive zones within the sub-basins interpreted to represent conductive brines at depth located well below the non-conductive sediments at and near surface.  

TDEM Survey at Gemini, 2016

A conductive layer 150-250 metres deep appears to cover most of Gemini and several isolated strong conductive zones were interpreted at depths from 400 to 600 metres. The conductive layers and zones are indicative of brine solutions in porous aquifers and traps within each sub-basin.

Gemini Project Geophysical Interpretation July 2016

2022 Drilling Program

On March 15, 2022, Nevada Sunrise announced the commencement of the inaugural drilling program at Gemini of up to 2,020 feet (615,85 metres) of reverse circulation drilling in up to two holes to test targets for lithium brines and lithium-in-sediments.

On April 21, 2022, the Company announced that lithium mineralization had been intersected over significant widths in the 2022 drilling program.  Two boreholes were completed for a total of 2,020 feet (615.85 metres) on drill sites located within a defined gravity low that hosts conductive layers detected by historical ground time-domain electromagnetic (“TDEM”) surveys (see Figure 1 below).

The results from the first two boreholes at Gemini represent a new discovery of lithium-bearing sediments in the western Lida Valley, which has not been historically drill tested for lithium mineralization. Lithium-in-sediment values were significant:

• GEM22-01 averaged 1,203.41 parts per million (“ppm”) lithium over 580 feet (176.83 metres), from 320 to 900 feet (97.56 to 274.39 metres) including 1.578.19 ppm lithium over 300 feet (91.46 metres) from 480 to 780 feet (146 to 237.8 metres).
   
• Gem22-02 averaged 1,101.73 parts per million (“ppm”) lithium over 730 feet (222.56 metres) from 390 to 1,120 feet (118.90 to 341 metres), including 2,217.69 ppm lithium over 130 feet (39.63 metres) from 990 to 1,120 feet ( 301.83 to 341.46 metres) and 3,304 ppm lithium over 50 feet (15.24 metres) from 1,070 to 1.120 feet (326.22 to 341.46 metres)

 Figure 1: TDEM Survey Results Showing Conductive Zones and Drill Holes at Gemini

Drilling at Gemini Project - March 2022

Table 1. Final analytical results from boreholes GEM22-01 and GEM22-02

1. Samples are a composite of material collected from the rotary splitter in the RC drilling rig, which produces a continuous, representative 3 to 5 kilogram sample for each sample interval.

Fig. 2: Gemini Lithium Project 2022 TDEM Survey Plan

The 2022 geophysical survey was designed to outline the possible lateral extent of the conductive, lithium-bearing clay layers within a historical gravity low that were intersected in drillholes GEM22-01 and GEM22-02. A total of 13.0 line kilometres were carried out in three new survey lines as shown in Figure 1. 

The TDEM moving loop survey employed 400 metre by 400 metre loops to collect data along new survey lines parallel to the 2016 survey lines, which had detected a highly-conductive layer (see Figure 2 above). The northern and western limits of the conductive clay layer at Gemini were historically not well-defined and the 2022 survey results have added to the Company’s geological knowledge of the conductive zones. In July 2022, and based on those results, Nevada Sunrise submitted an amended drilling plan to the Bureau of Land Management (“BLM”) for the permitting of new drill targets at Gemini. The expanded permit was received in August 2022, for up to 12 boreholes..

Gemini Lithium Project - Conductive Zone with 2022 Drillholes and Lithium Values

On June 6, 2022, Nevada Sunrise announced that highly-significant values of lithium were detected in water samples collected from boreholes GEM22-01 and GEM22-02, drilled in the inaugural 2022 drilling program. The water samples from both boreholes contain dissolved lithium in a calcium/magnesium carbonate-type brine that was not easily recognized on site during the drilling program due to the presence of high levels of suspended solids.

Water samples from borehole GEM-22-01 averaged 327.7 milligrams per litre (“mg/L”) lithium over 220 feet (67.07 metres) from 600 to 820 feet with a peak value of 519 mg/L lithium. Water samples from borehole GEM22-02 returned an average of 116.28 mg/L lithium over 460 feet (140.24 metres) from 600 to 1,120 feet (201.22 to 341.46 metres) with a peak value of 286.0 mg/L lithium (see Table 1 below). 

Table 1:  Results of Lithium-in-Water Samples for boreholes GEM22-01 & GEM22-02

Notes: 

1. Lithium concentrations in GEM22-01 water samples ranged from 137 mg/L to 519 mg/L in the 220 foot (67.07 metres) thick zone from 600 to 820 feet (182.93 to 250 metres).
2. The 60-foot zone sampled from 820 to 880 feet (250 to 268.3 metres) in GEM22-01 contained no significant lithium values.
3. Lithium concentrations in GEM22-02 water samples ranged from “not detected” to 286mg/L in the 460- foot (140.24 metre) thick zone from 660 to 1120 feet (201.22 to 341.46 metres).
    

Nevada Sunrise is evaluating the 2022 water and sediment sampling results in detail. These analytical results and preliminary research by the Company suggest that the Gemini lithium deposit is an example of the claystone deposit model situated in a closed arid basin, similar to lithium deposits found in the Clayton Valley and at other sedimentary-hosted lithium deposits in Nevada. 

Phase 2 Drilling Program

On August 15, 2022, Nevada Sunrise announced the receipt of an amended exploration permit from the BLM for Gemini. The amended permit increases the number of proposed borehole locations to twelve (12), which includes the two successful boreholes that intersected significant lithium values drilled during the Company’s maiden drilling program in March and April 2022.

Nevada Sunrise engaged O’Keefe Drilling Company of Butte, Montana as the drilling contractor for the program, which commenced on October 19, 2022. Up to six boreholes are planned In Phase 2 for an estimated total of 8,000 feet (2,439 metres) of drilling. The exploration goals for the drilling program are: (1) test lithium-bearing brine and sediments at greater depths than previous boreholes GEM22-01 and GEM22-02, and (2) determine the lateral extent of lithium-mineralized brine and sediments identified in the two previous Gemini drill holes. Drill hole locations may be amended or revised during the Phase 2 program as results warrant.

Geophysical TDEM Model Showing Conductive Zones and 2022 Drill Holes at Gemini

The first hole of the Phase 2 program, GEM22-03, was completed in mid-December 2022 and drilling of the second Phase 2 hole, GEM23-04, began in the second week of January 2023. GEM23-04 targeted a strong conductive anomaly approximately 0.65 miles (1.04 kilometres) northwest of hole GEM22-02 and is planned to test the deepest part of the Gemini basin to an estimated depth of 2,000 feet (609.75 metres).

On February 7, 2023, Nevada Sunrise announced the final geochemical analyses for lithium mineralization in sediments and groundwater collected from borehole GEM22-03.

Highlights of GEM22-03

• Borehole GEM22-03 intersected 929.80 parts per million (“ppm”) lithium-in-sediment over 1,130 feet from 280 feet (85.37 metres) to 1,410 feet (344.51 metres), including 1,342.20 ppm lithium over 350 feet (106.71 metres) and 1,955 ppm lithium over 30 feet (9.15 metres) (see table below for greater detail on mineralized intervals);
• GEM22-03 was completed at a location approximately 0.47 miles (0.76 kilometres) north of GEM22-01 and 1.14 miles (1.83 kilometres) north of GEM22-02, thereby successfully extending the lithium mineralized zone to the north.
• Groundwater sample analyses showed anomalous concentrations of lithium in groundwater flows intersected within the hole, including two significant intervals of 120 milligrams/litre lithium (“mg/L”) in a water flow of 14.22 gallons per minute (“gpm”) from 1,100 to 1,120 feet (335.37 to 341.46 metres), and 110 mg/L lithium in a water flow of 16.4 gpm from 1,200 to 1,220 feet (365.85 to 371.95 metres).

Final Lithium-in-Sediment analytical results from borehole GEM22-03 

Note: Sediment samples are a composite of material collected from the rotary splitter in the RC drilling rig, which produces a continuous, representative 3 to 5 kilogram sample for each sample interval. All depth measurements reported, including sample and interval widths are down-hole. As holes at Gemini are oriented vertical and geologic stratigraphy is primarily horizontal to sub-horizontal, downhole measurements are assumed to be close to true thickness.

Nevada Sunrise interprets the lithium-in-water results in GEM22-03 as groundwater flows that are situated higher up in the stratigraphy of the Gemini basin, and further north of the location of the stronger lithium-in-water results intersected in boreholes GEM22-01 and GEM22-02.

GEM23-04 Drilling in Progress, February 2023

On February 28, 2023, Nevada Sunrise announced the receipt of initial geochemical analyses for lithium mineralization in sediment and groundwater samples collected from the first 1,500 feet (457.32 metres) of borehole GEM23-04, drilled at its 100%-owned Gemini Lithium Project (“Gemini”) located in the Lida Valley basin in Esmeralda County, Nevada. Drilling of borehole GEM23-04 began on January 10, 2023 and was completed to a depth of 1,950 feet (594.51 metres) on February 22, 2023, which represents the deepest hole drilled to date at Gemini. The remaining samples collected in the final 450 feet (137.20 metres) of hole GEM23-04 are still in analytical process.

Video GEM23-04 Drilling in Progress, February 2023

Highlights of GEM23-04

• Borehole GEM23-04 intersected 1,321.76 ppm lithium-in-sediment over 990 feet (301.83 metres) from 510 feet (155.49 metres) to 1,500 feet (457.32 metres), including 3,556.82 ppm lithium over 110 feet (33.54 metres) and 4,329.60 ppm lithium over 30 feet (9.15 metres) (see table for GEM23-04 sediments analyses below);
• Water sample analyses showed anomalous concentrations of lithium in groundwater flows, notably an average of 116.43 mg/L lithium over 140 feet (42.69 metres), including intervals of 180 mg/L lithium from 1,200 to 1,220 feet (365.85 to 371.95 metres), 230 mg/L lithium from 1,260 to 1,280 feet (384.15 to 390.24 metres), and 200 mg/L lithium from 1,320 to 1,340 feet (402.44 to 408.54 metres). A second discrete interval higher up in the borehole returned 200 mg/L lithium over 20 feet (6.1 metres) from 1,100 to 1,120 feet (335.37 to 341.46 metres) (see table for GEM23-04 water analyses below);
• GEM23-04 was completed at a location approximately 0.70 miles (1.13 kilometres) southwest of GEM22-01 and 0.65 miles (1.04 kilometres) northwest of GEM22-02, thereby successfully extending the lithium mineralized zone at Gemini to the west.

Initial Results of Lithium-in-Sediment Samples for Borehole GEM23-04

Note: Sediment samples are a composite of material collected from the rotary splitter in the RC drilling rig, which produces a continuous, representative 3 to 5 kilogram sample for each sample interval. All depth measurements reported, including sample and interval widths are down-hole.  As holes at Gemini are oriented vertical and geologic stratigraphy is primarily horizontal to sub-horizontal, downhole measurements are assumed to be close to true thickness.

Table 2:  Initial Results of Lithium-in-Water Samples for Borehole GEM23-04 

The Phase 2 drilling program at Gemini continues with borehole GEM23-05, currently underway, collared approximately 1.02 miles (1.64 kilometres) southeast of borehole GEM23-04, and 0.54 miles (0.87 kilometres) south of borehole GEM22-02.

Gemini Lithium Project Hole Borehole Locations, February-March 2023 

To date, the Company has intersected significant intervals of lithium mineralization both in sediments and groundwater in all four holes completed since the inception of drilling.  Nevada Sunrise believes that the southern and western parts of the Gemini basin could host higher concentrations of lithium and further drilling could eventually define a large lithium resource. The Company is enacting its exploration plan to drill deeper holes at Gemini with the goal of: (1) intersecting wide intervals of lithium-bearing sediments and (2) locating higher concentrations of lithium-in-water coincident with significant groundwater flow rates.

Sampling and Analytical QA/QC and Statement of Qualified Person

All depth measurements reported, including sample and interval widths are down-hole.  As holes are oriented vertical and geologic stratigraphy is primarily horizontal to sub-horizontal, downhole measurements are assumed to be close to true thickness.

Water Sample Collection and Analysis

Water parameters including TDS, conductivity, temperature, and pH values were obtained in the field by direct measurement with a YS1556 Multi-parameter water meter, which meets Good Laboratory Practice (as proscribed by the Organization for Economic Cooperation and Development) for calibration and measurement. 

Groundwater samples were collected at 20-foot (6.1-metre) intervals and sent to Western Environmental Testing Laboratory in Reno, Nevada under project chain-of-custody protocols for analysis. Industry standard methods for examination of water were employed by the laboratory. General chemistry testing included analysis for specific gravity, total hardness, total alkalinity, bicarbonate, carbonate, hydroxide, total dissolved solids (TDS) and electrical conductivity. Anions (chloride, sulfate) were analyzed by ion chromatography. Trace metals (lithium, magnesium, boron, calcium, potassium, strontium, and sodium) were analyzed by inductively coupled plasma-optical emission spectroscopy (ICP-OES) methods.

Sediment Sample Collection and Analysis

Sediment samples described in this disclosure are a composite of material collected from the rotary splitter in the RC drilling rig, which produces a continuous, representative 3 to 5 kilogram sample for each sample interval. Samples were submitted to American Assay and ALS in Reno, NV and were analyzed utilizing a multi-element ICP-AES method. Specifically, the analytical method involves aqua regia digestion of the sample followed by the inductively coupled plasma (ICP) technique to ionize the sample, and atomic emission spectrometry (AES) to determine elemental concentrations. Duplicates, field blanks, and certified reference standards were inserted at regular intervals in the sample stream to ensure accuracy of the analytical method.

The scientific and technical information contained in this disclosure has been reviewed and approved by Robert M. Allender, Jr., CPG, RG, SME and a Qualified Person for Nevada Sunrise as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects.