Venari Minerals has received final drill assay results from its Red Mountain Lithium Project in Nevada, setting the stage for a maiden Mineral Resource Estimate amid a strong lithium market rebound.
- Final assays confirm high-grade lithium mineralisation over 1km strike
- Maiden Mineral Resource Estimate expected within three weeks
- Lithium prices have more than doubled in five months to US$20,000/t
- Project benefits from secured water rights and strong infrastructure access
- Industry forecasts predict lithium supply deficit in 2026
Final Drilling Completes Dataset for Red Mountain
Venari Minerals NL (ASX – VMS) has announced the receipt of final assay results from its October 2025 drilling campaign at the Red Mountain Lithium Project in Nevada, USA. The latest results confirm significant lithium mineralisation, with drill-holes intersecting high-grade zones exceeding 2,000 parts per million lithium over a strike length of more than one kilometre. This completes the drilling dataset for the project, enabling the company to progress towards its maiden Mineral Resource Estimate (MRE).
Maiden Resource Estimate Imminent Amid Strong Market Conditions
Work on the maiden MRE has already commenced, with delivery expected within three weeks. This milestone comes at a fortuitous time as lithium prices have surged dramatically, with the Shanghai Metal Market Battery-Grade Lithium Carbonate price more than doubling in the past five months to approximately US$20,000 per tonne. Investment banks such as Morgan Stanley and UBS are forecasting a lithium supply deficit in 2026, underscoring the strategic importance of new lithium projects like Red Mountain.
Project Location and Technical Strengths
Located in central-eastern Nevada, the Red Mountain Project benefits from excellent infrastructure, including proximity to a major highway, a 525kV transmission line, and secured water rights on a nearby private property. The lithium mineralisation is hosted in tertiary lacustrine sediments, similar to other major Nevada lithium deposits such as Lithium Americas’ Thacker Pass and American Battery Technology Corporation’s Tonopah Flats.
Encouraging Metallurgical Testwork
Metallurgical studies have shown high lithium leachability of up to 98%, with beneficiation testwork indicating potential to upgrade the lithium content. These technical attributes enhance the project's economic prospects and support Venari’s confidence in advancing towards resource definition and subsequent development stages.
Strategic Positioning in a Rebounding Lithium Sector
Venari’s Chairman, Tony Leibowitz, highlighted the company’s counter-cyclical commitment to the project, positioning Red Mountain as one of the largest new lithium projects in North America at a time of heightened strategic interest in critical minerals. The combination of robust drill results, favourable metallurgy, secured infrastructure, and a tightening lithium market creates a compelling narrative for investors and industry watchers alike.
Bottom Line?
Venari’s upcoming maiden resource estimate will be a key indicator of Red Mountain’s potential to capitalise on the tightening lithium market.
Questions in the middle?
- What will be the size and grade classification of the maiden Mineral Resource Estimate?
- How will Venari advance the project towards feasibility and production amid rising lithium prices?
- What are the potential environmental and permitting challenges for Red Mountain?