Fulcrum Faces Key Phase 3 Drilling Tests After Major Lithium Target Expansion

Geophysical Breakthrough at Alkali Flats

Fulcrum Lithium Ltd (ASX, FUL) has reported compelling results from a 25-kilometre Controlled-Source Audio-Frequency Magnetotelluric (CSAMT) survey conducted at its 100% owned Alkali Flats lithium claystone project in Esmeralda County, Nevada. This high-resolution geophysical technique has delivered a robust dataset that significantly expands the known lithium mineralisation footprint beyond previous drilling results.

The survey’s interpretation reveals a 42-square-kilometre aerial extent of thick, shallow lithium-bearing claystones, a substantial increase from the 9-square-kilometre area delineated by the Phase 2 drilling campaign. This expansion not only underscores the potential scale of the deposit but also enhances geological confidence in the continuity and thickness of the lithium horizons.

Strategic Implications for Upcoming Drilling

According to Scott Keenan, Fulcrum’s Chief Operating Officer, the CSAMT data has been instrumental in refining the geological model and guiding the design of the forthcoming Phase 3 drilling program. The survey identified key structural features such as extensional faults and upthrown blocks that bring mineralised claystones closer to the surface, in some cases less than 25 metres deep, which could have positive implications for future extraction methods.

The Phase 3 program is poised to build on these insights with core drilling aimed at detailed metallurgical studies, infill drilling to tighten the resource model, and testing of the newly mapped extensions. These efforts are critical steps toward delivering a maiden JORC-compliant resource estimate, a milestone that will provide the market with a clearer valuation of the project’s economic potential.

Context Within Nevada’s Lithium Landscape

Alkali Flats is strategically located near established lithium operations, including Albemarle Corporation’s Silver Peak mine, the only producing lithium mine in the United States, and other advanced exploration projects in the Tonopah region. The project’s geological setting within a closed basin with high geothermal activity aligns with recognized models for lithium claystone deposits, enhancing its prospectivity.

Fulcrum’s methodical approach, combining geophysical surveys with phased drilling and metallurgical testing, reflects a disciplined strategy to de-risk the project and unlock value in a jurisdiction known for its mining-friendly policies.

Looking Ahead

While the CSAMT survey results mark a significant advancement, the ultimate commercial viability of Alkali Flats hinges on forthcoming Phase 3 drilling outcomes and metallurgical test results. Investors will be watching closely as Fulcrum progresses toward its maiden resource estimate, which could position the company as a notable player in the burgeoning US lithium sector.