Scientific Metals Corp. ("STM" or the "Company") is pleased to announce it has completed the arm's length acquisition of a 100% interest in the Paradox Basin Lithium Brine property (the "Paradox Property") located in Utah in the western United States.
The Company acquired an aggregate of 111 mineral claims covering approximately 2,200 acres that contain six historic oil and gas drill holes. In consideration for the acquisition of a 100% interest in the Paradox Property, STM made a cash payment of US$40,000.00 and issued 2,750,000 common shares to the vendor. The Company also issued 333,333 common shares as a finder's fee in accordance with the policies of the TSX Venture Exchange. All securities issued under the transaction are subject to a four month hold period.
The Paradox Property lies within an area with historic fluid analysis ranging from 81 to 1,700 ppm lithium in saturated minerals brines, which was previously disclosed by Voltaic Minerals Corp.'s press release of February 18, 2016. Well No.1 Long Canyon returned 500 ppm lithium. This well is located within 400 feet of the Paradox Property ("Concentrated Subsurface Brines in the Moab Region, Utah", Utah Geological and Mineralogical Survey, June 1965).
The Paradox Basin area is a semi-desert region with an average of over 300 days of sunshine per year, existing infrastructure, and year-round access to road and rail. The Paradox Property is located approximately 4 kilometres northwest of Intrepid Potash's Cane Creek Operation and is contiguous to the north of Voltaic Minerals Corp.'s "Green Energy" lithium property. As disclosed in Intrepid Potash's 2015 Annual Report, the Cane Creek Operation produced 93,000 tonnes of potash in 2015 through solution mining and solar evaporation ponds. The Paradox Property is approximately 530 miles east of Tesla's Gigafactory in Nevada.
STM president, Brian Kirwin stated, "We're pleased to have closed the acquisition under more favourable terms and will now direct our attention to planning the first phase of exploratory work which will focus on analysis of the brines encountered in historical drill holes and structural analysis."
Approximately six wells have been drilled on the Paradox Property with approximately 25 historic wells in the area. Of these 25 historic wells, five near the Paradox Property have analytical data for lithium and are concurrent with a zone determined by the USGS to contain greater than 40% total dissolved solids in oil field brines. Lithium occurs in the basin in oversaturated mineral brine (40 per cent minerals, 60 per cent water) and was discovered during oil exploration when drill wells intercepted the main brine zone (clastic break 31) of the Paradox formation. ("Concentrated Subsurface Brines in the Moab Region, Utah", Utah Geological and Mineralogical Survey, June 1965).
The Company has not undertaken any independent investigation of the drill results, fluid analysis or other information contained in this press release nor has it independently analyzed the results of the previous exploration work in order to verify the accuracy of the information. The Company believes that the historical drill results, fluid analysis and other information contained in this press release are relevant to continuing exploration on the Paradox Property. The Company intends to conduct a review of recent and historic well logs, along with chemical analysis in the area and reprocessing of seismic data focusing on mineral brine. Evaluation of reservoir potential will be done in preparation for the re-entry of shut-in wells.
Mr. Garry Clark, P. Geo., of Clark Exploration Consulting, is the "qualified person" as defined in NI 43-101, who has reviewed and approved the technical content in this press release.