Junior Exploration Company Enjoys Expansion and Promising Drilling Results

Usha Resources Ltd. (USHA:TSX.V; USHAF:OTCQB) has more than tripled the amount of land it controls at its Jackpot Lake Lithium Brine Property, within the Dry Lake Basin. It now has 442 mineral claims at the location, with a total area of around 35.3km squared.

Usha Resources Ltd. is a Canadian junior exploration company focused on exploring and advancing early-stage high-grade precious and base metal projects across North America.

The materials found were identified through gravity and controlled source audio magnetotellurics surveys. According to a press release from February 7, current findings indicate the potential for a significant discovery of lithium. 

Initial modeling indicates that the target makes up all of the company’s claim block, a total of 11.3km squared, or 2,800 acres. The target is shallow, above bedrock depths of 625 meters, and is around 450 meters thick.

The company has staked all available acreage surrounding its core claims. The total basin is believed to be approximately 10,900 acres. 

New Drilling Begins

Usha Resources has also begun drilling its second hole (JP22-2) at its Jackpot Lake Property, located in Clark County, Nevada, after successfully completing the drilling of hole JP22-1. JP22-2 is situated around 2.75km north-northwest of JP22-1. 

JP22-1 was drilled to 525 meters below grade along Line 2. 

Chris Temple, of The National Investor, echoes this positivity and believes that Usha Resources’ Jackpot Lake is "unique among the numerous Nevada-centric exploration stories out there," and referred to the company as "the only key player in this basin."

Lithium can be found in JP22-1 at a grade of up to 300 ppm, based on 10 samples collected from shallow surface soils. 

CEO of Usha Resources, Deepak Varshney, said the company is "exceptionally pleased with the findings of the program so far" and that finishing drilling in the first hole was a "milestone."

Chris Temple, of The National Investor, echoes this positivity and believes that Usha Resources’ Jackpot Lake is "unique among the numerous Nevada-centric exploration stories out there," and referred to the company as "the only key player in this basin."

The Catalyst: Prospective Lithium Deposit

The exciting initial findings from drill programs spurred Usha Resources to claim additional land within the basin, in order to secure access to the 'strong conductive geophysical anomaly' that’s believed to be the prospective lithium.

Deepak Varshney also mentioned that the geologic conditions at the Jackpot Lake Property are similar to those at Clayton Valley, "which hosts Albemarle’s Silver Peak Nevada Lithium Mine, the only producing lithium mine in North America."

He said the company is "optimistic in thinking that we may have discovered an untapped lithium deposit."

The Lithium Market

According to Fortune Business Insights, the lithium market is expected to grow from "US$3.83 billion in 2021 to US$6.62 billion in 2028," which will likely be driven by growing demand for its use in the manufacturing of products like mobile phones, laptops, and electric vehicles. 

Fortune Business Insights also stated that the "market in North America is likely to rise at a considerable pace," due to increased interest in and usage of clean energy.

As well as being a key component in the making of electric vehicles, lithium batteries have also been of great importance during the Covid-19 pandemic, as they are used in medical ventilators. 

Fortune Business Insights said a Tesla Model S battery has around 12 kilograms of lithium in it. Tesla is also reportedly developing a Li-iron phosphate battery, which would cut vehicle costs and extend vehicle battery life. 

Ownership & Share Structure

Headquartered in Vancouver, 13.3% of Usha Resources shares are owned by management and insiders. CEO Deepak Varshney owns 5.04% of shares, with 1.8 million shares, while Director Navin Varshney owns 7.1%, or 22.53 million, valued at CA$1 million.

According to Reuters, 15.03% is with institutions and strategic investors. Out of this category, Palos Management Inc. has the most at 1.77%, with 0.63 million shares. 

The company’s implied market cap is CA$13.905 million, with 35.65 million shares outstanding. The company trades at a 52-week range of between CA$0.2050 and CA$0.4200.

Disclosures: 

1)  Lauren Rickard wrote this article for Streetwise Reports LLC as an independent contractor. They or members of their household own securities of the following companies mentioned in the article: None. They and members of their household are paid by the following companies mentioned in this article: None.

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