Lancaster Resources Inc. has announced that the US Department of the Interior’s Bureau of Land Management (BLM) has approved the Plan of Operations for the Alkali Flat Lithium Brine Phase 1 drilling program. This follows permit approval by the New Mexico Mining and Minerals Division (MMD), announced on April 30th, 2024.
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The BLM approval of our Plan of Operations application is further proof of Lancasters’ vision of providing sustainable and minimal impact critical minerals for the energy transition. We are rapidly progressing to drilling our maiden exploration well at Alkali Flat and showing the significant potential lithium brine deposit in the subsurface aquifers identified by our 2023 geophysics program.
Andrew Watson, Vice President, Engineering and Operations, Lancaster Resources Inc.
The Plan of Operations, which was filed to the BLM in September 2023, has been officially authorized in accordance with BLM regulations 43 CFR 3715. With this approval, up to three wells can be drilled on the playa, allowing for a quicker regulatory procedure while waiting for the maiden well's findings in Q2 2024.
The approval is subject to strict requirements that Lancaster and the BLM have worked closely on, including safety, access, and environmental protection. Lancaster aims to meet or beyond all regulations to safeguard the environment, all stakeholders, and public safety.
As previously announced, Lancaster must provide a letter of credit or other financial assurance instrument for USD $63,783, which will be jointly held by the BLM and MMD. Following receipt of the financial assurance and the New Mexico Office of the State Engineer’s approval, Lancaster will be permitted to access and drill on the playa.
The Alkali Flat Lithium Project is focused on a playa lake closed-basin brine deposit. The project’s location next to an interstate highway and major rail route provides excellent access. The well-known 15MW Lightning Dock Known Geothermal Resource Area (KGRA) is approximately 8 miles north of the Drill Permit area.
Roughly 58% of the world’s lithium resources are in closed basin brine deposits. The brine operation in Clayton Valley, Nevada, is now the only place in the United States where lithium is produced.