Noram Prepares to Drill Second Potential High-Grade Zone at Zeus Lithium Project - Seite 2

Geological Model

In order to develop the new geological model, BRE undertook a series of important tasks, including:

• Created a regional digital geological map of Clayton Valley.
• Added digital 1-meter spaced lidar elevation data for the Zeus concessions and 1-meter spaced topographical contour lines.
• Enhanced existing assay data base to link to geological units.
• Developed 1:5,000 scale geological surface maps through extensive field survey.
• Reviewed drill core from holes within the high-grade core area.
• Defined a new geological model for use in Mineral Resource Estimation.

The field mapping revealed many unanticipated geologic features that BRE believe are important in understanding the origin of the lithium-rich lacustrine clay deposit at Zeus. These features include evidence of syn-sedimentary faulting and associated hot spring type hydrothermal alteration capable of transferring lithium upwards from depth and forming significant zones of higher-grade lithium clays (Figure 2).

BRE identified and interpreted a concealed fault by tracing these fault-related (diamictites) and hot-spring-related (siliceous cherty rocks in the southwest and travertine beds to the northeast) rock units revealed on the surface. BRE believe that such a fault, and its clear hydrothermal remnants, played an essential role in the origin of the lithium-rich clays at Zeus. The ore deposit model that BRE has built for Zeus relies on the classic geology tenet of "Source-Pathway-Trap" and which is analogous to the model developed for Lithium America's Thacker Pass project.

The "Source" of the lithium at Zeus is at depth in a thick sequence of rhyolitic pyroclastic rocks (volcanic ash and tuffs). Devitrification of these hot volcanic materials releases incompatible elements, (such as lithium, fluorine, cesium) from volcanic glass (ash) to form a hot, buoyant lithium-enriched vapor/fluid phase. As well, the hydrothermal elements enriched at Zeus (S, As, Mo, etc.) also are sourced from depth.

The "Pathway" along which these hot and buoyant vapors/fluids moved upwards is believed to be the fault identified.

The "Trap" at Zeus are the lacustrine clays. Fluorine atoms can replace hydroxide in the clay crystal structure, tweaking the clay octahedral site which allows for the input of lithium into the clay structure forming lithium-rich clays.

The updated geological model and results from the planned drilling program will be used to update the Mineral Resource Estimate and subsequent mine planning for the Prefeasibility Study.

Figure 2 Geological model developed by BRE for the Zeus Project.