Great American Energy, Inc. Enters into Option to Acquire 100% Interest in Nevada-Based Big Smoky Valley Lithium Property
DENVER--(BUSINESS WIRE)-- Great American Energy, Inc. (OTCBB: SRBL) ("Great American Energy" and/or "the Company") is pleased to announce that on June 13, 2012, the Company entered into an option agreement (the "Option Agreement") with Nevada-based GeoXplor Corporation to acquire a 100% interest in the Big Smoky Valley Lithium Property. The property represents 48 unpatented placer mining claims comprising ~7,680 acres in and around Esmeralda County, Nevada. Lithium is a strategic metal widely used in batteries for portable electronic devices; in next generation electric and hybrid vehicles such as the Nissan LEAF and Chevy Volt; and in various other market applications.
The Big Smoky Valley (BSV) property represents several strategic location advantages:
Nevada is one of the top mining jurisdictions in the world;
Significant surrounding infrastructure exists (close to road, railway, power and mining towns including Silver Peak, Goldfield and Tonopah);
Surrounding lithium-bearing rhyolites are among the richest in the world according to US Geological Survey (USGS) information;
USGS Gravity Survey exploration revealed a deep-seated basin structure in the region with high potential for lithium enrichment;
USGS Survey (1974) reconnaissance drill holes on or near the property yielded lithium values averaging 160ppm;
Adjacent to Clayton Valley's lithium deposit, which may exceed 700 million kg (Source: Price/Lechler Report);
Adjacent to America's only producing lithium mine, Chemetall Foote's Silver Peak Mine in Clayton Valley (producing for 40+ years at a rate of ~5,000 lithium carbonate equivalent tonnes per year).
The Silver Peak Mine and the surrounding area, including the Big Smoky Valley, are located in what is geologically referred to as the Basin and Range Province, which extends from southern Oregon to Mexico. In the 1970s and 1980s, the USGS carried out a series of reconnaissance programs in the region, which included sampling and drilling programs conducted in several valleys including two holes in Big Smoky Valley. One of those holes is located on the Company's BSV property. Both holes intersected geochemically anomalous concentrations of lithium in water and sediments. A gravity survey was also completed through Clayton Valley and the saddle connecting Big Smoky Valley. Another more extensive gravity survey was subsequently conducted in Big Smoky Valley for the US military. The regional gravity surveys confirmed the existence of various structures that may have created topography favorable for evaporite accumulation and subsequent traps, which potentially could host mineral rich brines.
In September 2009, the private geotechnical consulting firm Coast Mountain Geological Ltd prepared a National Instrument 43-101 compliant technical report on what is now the Company's Big Smoky Valley Lithium Property. The report found similar geology to that of the Silver Peak Mine in the adjoining Clayton Valley, and recommends a non-contingent multi-staged program be carried out to test the resource potential of the property. In turn, Great American Energy is currently developing an initial exploration plan. Lithium exploration work will include reconnaissance and grid sampling along with geophysics surveys designed to identify drilling targets and inform hydrogeological tests for the purpose of resource estimation.
Great American Energy's CEO, Felipe Pimienta, commented: "This acquisition fits perfectly with our focus of supporting America's clean energy and clean tech industries. With proven lithium production in the region, we'll now get to work on establishing the Big Smoky Valley property's full lithium potential."
According to the terms of the Option Agreement, to exercise the option, the Company must make a series of scheduled cash payments to GeoXplor and fund improvement and mineral exploration projects on the property totaling an agreed upon dollar amount no later than July 1, 2015. Following the exercising of the option, GeoXplor will be granted a 3% net smelter royalty (NSR) for any and all minerals mined and delivered from the property.
Learn more about the Big Smoky Valley Lithium Project, the Company, and its recent news at Great American Energy's website: http://www.gamericanenergy.com.
ABOUT GREAT AMERICAN ENERGY, INC.
Great American Energy, Inc. is a publicly traded (OTCBB: SRBL) mineral exploration and development company focused on supporting America's growing clean energy and clean tech industries. Based in Denver, Colorado, Great American Energy is dedicated to responsibly identifying, acquiring and developing mineral assets in America and US-friendly countries. The Company's portfolio of projects currently targets lithium and rare earth element production, both of which are essential to America's clean energy and clean tech industries. For more information on the Company and its activities, visit Great American Energy's website at http://www.gamericanenergy.com.
ON BEHALF OF THE BOARD OF DIRECTORS,
Great American Energy, Inc.
Felipe Pimienta, CEO
999 18th Street
This press release includes certain statements that are forward-looking in nature and that involve a number of uncertainties and risks. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements in this press release are based on Great American Energy, Inc.'s current expectations and projections regarding future events, which are based on currently available information. The forward-looking statements in this press release may also include statements relating to Great American Energy Inc.'s anticipated new developments, business prospects, financial performance, strategies and similar matters. Great American Energy, Inc. disclaims any obligation to update any of its forward-looking statements, except as may be required by law.
Felipe Pimienta, CEO
KEYWORDS: United States North America Colorado Nevada
The article Great American Energy, Inc. Enters into Option to Acquire 100% Interest in Nevada-Based Big Smoky Valley Lithium Property originally appeared on Fool.com.
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