Jackson Wash is situated on a flat, desert basin having the potential to host lithium brine deposits in aquifers beneath the valley floor.
Jackson Wash consists of 130 unpatented placer claims totaling approximately 2,600 acres (1,052 hectares) and is located on the east side of the Montezuma Range approximately 20 miles (30 kilometers) southeast of the Silver Peak lithium brine mine operated by Albemarle Corporation (ALB:NYSE) and 13 miles (21 kilometers) southwest of Goldfield , the Esmeralda County seat.
Historical exploration on the Property in 2011 discovered widespread deposits of obsidian fragments on the valley floor, possibly derived from Tertiary felsic rhyolite and tuff volcanic rock units present in the Montezuma Range to the north and west of Jackson Wash.
Fragments at six locations were sampled and returned lithium values ranging from 97.3 parts per million ("ppm") lithium to 117.0 ppm lithium ( R. M. Allender, Jr. , 2011). Weathering of the felsic volcanic rocks containing lithium is believed to be the source of lithium contained in subterranean brines.
The results of a detailed gravity survey and two CSAMT lines surveyed in 2011 by a previous operator were interpreted as a layered sequence of unconsolidated, saturated alluvial sediments filling a deep basin beneath the valley floor. The Jackson Wash basin is believed to be related to north-south basin and range fault systems.
Drilling and sampling of the sediments and groundwater in the interpreted basin are the next steps in the exploration process for Jackson Wash. Nevada Sunrise is planning the first test of the Jackson Wash basin with a 3 to 4-hole drill program of holes up to 400 metres deep to test specific structural and stratigraphic targets believed prospective for lithium brine deposits.
Jackson Wash was the subject of an interim agreement announced by the Company on October 7, 2015 . For an option to earn up to a 100% interest in Jackson Wash, Nevada Sunrise has agreed to issue a total of 500,000 common shares of the Company to the vendor, payable upon signing a definitive agreement (the "Agreement") for the Property, and on subsequent anniversaries of the Agreement, as follows:
On signing the Agreement: 100,000 common shares
1st Anniversary: 150,000 common shares
2nd Anniversary: 250,000 common shares
A 1.5 mile (2.25 kilometer) area of interest applies to the Property. Jackson Wash is subject to a 3.0% gross overriding royalty ("GOR"). On the 3rd anniversary of the signing of the Agreements for Jackson Wash, Nevada Sunrise would have the right to purchase 1.0% of the GOR for US$1,000,000 .
