Usha Resources secures five more lithium pegmatite projects in Ontario

Usha Resources Ltd (TSX-V: USHA; OTCQB: USHAF; FRA: JO0) continues to systematically expand its portfolio of lithium pegmatite projects in Ontario. The Company has secured an earn-in option on five additional prospective projects totaling 13,408 hectares: 'Lee Lake', 'Mead', 'Bluett', 'Gathering Lake' and 'Triangle Lake'. In total, Usha's portfolio now includes seven lithium concessions in Ontario covering 29,088 hectares.

The three-year option for the five new projects requires just $45,000 CAD at signing, plus 275,000 Usha shares. If Usha exercises the option in full for all projects, CAD 395,350 must be invested in the projects over three years. In addition, 2,100,000 shares would have to be paid to the option seller. In addition, the seller retains a 2% NSR royalty Usha CEO Deepak Varshney explained the comparatively favorable terms of the transaction by saying that the Jackpot Lake lithium brine project in Nevada played a major role in the negotiations. The large weight of shares automatically lets the option holders participate in a success in Nevada.

Deepak Varshney, CEO of Usha Resources, explained, "Each of these properties offers the potential from a technical perspective to be the next major lithium discovery in Ontario. With this in mind, we are intensifying our ongoing discussions with Australian partners because we share the belief that all of our Canadian projects, including White Willow, lend themselves to successful partnerships."

Dual Focus on Jackpot Lake and Pegmatites

The Jackpot Lake lithium brine project remains Usha's main project. There, the company plans to continue its initial drilling program to delineate an initial NI 43-101 compliant resource. The arrival of a more powerful drill rig is expected shortly, which will allow drilling to the suspected bottom of the closed basin at a depth of approximately 600 meters. There, Usha suspects a continuation of the higher porosity sand and conglomerate zone that has already been intersected by a weaker drill rig but not explored to its full thickness. In analogy to the Clayton Valley, geologists promise the highest concentration of potential brines with the best pumpability.

As of April 12, the company had reported the highest lithium grades ever measured at the project: 820 ppm Li, with an average of 334 ppm Li in thirty samples taken from near-surface soils (<150 meters). This value exceeds historical averages by more than four times and is also significantly higher than in the so-called Esmeralda Formation (100 ppm), which is considered to be the sources of lithium enrichment in the Clayton Valley brines. The Esmeralda Formation shapes conditions at Albemarle's Silver Peak lithium brine mine site in Clayton Valley, the only lithium mine in the United States.

Summary: It speaks to the quality of Usha's management that it has managed to assemble a substantial portfolio of lithium pegmatite projects in a hot market while keeping acquisition costs under control. At nearly 300 km², Usha's portfolio of hard rock projects is now at least as large as Brunswick Exploration's (TSXV:BRW) Ontario portfolio, with Brunswick holding other pegmatite properties in other provinces. Given its size and good location, the project portfolio could attract international investors looking for a smart entry into the developing Canadian lithium sector. Talks in this direction are apparently underway. Even without that, Usha has enough cash, with about CAD 3 million in working capital, to meet all option conditions and develop a Maiden resource for its Jackpot Lake lithium brine project in Nevada in parallel - this year! Because Jackpot Lake is a lithium brine project, we believe it has not yet received the attention in the market that it deserves. After all there is a very good chance of discovering a deposit analogous to Silver Peak (Albemarle) and Pure Energy (Schlumberger) in Nevada's Clayton Valley. The entire Usha portfolio - including a prospective gold project in Arizona - is currently trading at CAD 12 million on the stock market. By comparison, Brunswick Exploration is valued at CAD 146 million, mainly because it is backed by Osisko.

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