Lithium focused junior explorer Surge Battery Metals Corp. (TSX-V: NILI) (OTCQX: NILIF) has recently surged to new all-time highs on significant developments since our initial article on Surge Battery Metals was first published. However, a recent pullback may be setting up other opportunities of entry.
Surge Battery Metals has been on a path of acquisition and announcements of impressive assay results over the last several months, acquiring interest in several lithium claims in Nevada and significantly expanding its Nevada North Lithium Project, a lithium clay deposit, and has also expanded its footprint for nickel in British Colombia.
In June, NILI announced that the company has completed the acquisition of the Surge Nickel Project from Grid Battery Metals. The Surge Nickel Project is located in British Colombia and is comprised of two non-contiguous mineral claims with six mineral claim blocks in central B.C. One claim totals 1,863 hectares and is just south of the Decar project which is owned by FPX Nickel Corp. (TSX-V: FPX) in the Mount Sidney Williams Area.
At the company's property in Nevada, NILI reported its best lithium assay results which they received in September from its 2023 summer drilling program at the Nevada North Lithium Project, and has returned lithium grades ranging from 1,000 ppm to 8,070 ppm. Sonic drilling methods were used for the first five holes, and wireline diamond drilling techniques are being used for the final three holes, with results expected to be announced in the coming weeks ahead. In its release, Mr. Greg Reimer was quoted "With lithium values up to 8070 ppm we are excited with tthe results from our first drill of the 2023 season. These results confirm and improve on results from our initial 2022 reverse circulation drilling campaign. We pland on expanding on the NN2301results with further diamond drilling and look forward to receiving and reporting these results and additional holes in the coming weeks as we complete this summer's drilling campaign."
Surge Battery Metals is very well capitalized and currently has nearly CAD $10,000,000 in cash, and also has American Lithium (NASDAQ: AMLI) as a strategic investor, with American Lithium owning approximately 9.7% of Surge Battery Metals. American Lithium's investment in NILI is valued at CAD $5,360,000 when the investment was made.
On Tuesday, Surge Battery Metals announced their second certified assay results from its Nevada North Lithium Project. Results from its sonic drill hole returned lithium results between 1,000 ppm cutoff to 5,820 ppm, with the highest-grade zone beginning at 67.5ft below surface, extending 180ft and an overall composite grade of 3,985 ppm.
Mr. Greg Reimer, CEO of NILI stated "Not only has NN2302 returned a significant average grade greater than our 2022 program, but it is also noteworthy in that it is an approximate 250m (820ft) step out to the northwest of drillhole NN2205 from the 2022 program. We are eagerly awaiting assay results from hole P and V, located 300m and 1300m further north, respectively, where similar clay units were encountered during 2023 drilling and logging." In addition to this news release, NILI has received regulatory approval from the Nevada Bureau of Land Management for its drill site location "W", which is 500 meters to the north , and extending the strike length to 3,500 meters.
We first covered Surge Battery Metals back in November 2022 in our article entitled "Battery Metals Co. Surges Over 300% In Over 3 Months" due to its strong share price appreciation, and its interesting location in Nevada and British Colombia. If you happened to roll the dice at $.17 cents when we first published our article on NILI, you would be up a total of 811%, hitting 1.55 in just under one year. As with all major runs, corrections are inecitable and are necessary to sustain higher prices in the future, and its most recent development might help with just that as volume on its US exchange continues to grow. Yesterday, Surge Battery Metals has uplisted on the highest over the counter (OTC) exchange the OTCQX, from the OTCQB, and will continue to trade under the same ticker symbol NILIF.
NILI anticipates that the completion of a maiden resource estimate for the Nevada North Lithium Project sometime this fall, and is a development we are watching closely.