Great American Energy, Inc. Enters Into Option To Acquire 100% Interest In Nevada-Based Big Smoky Valley Lithium Property
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.
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