Fulcrum Lithium has secured permits for an extensive Phase 3 drilling program at its Alkali Flats project in Nevada, aiming to expand and refine its lithium resource amid a robust market rally.
- Phase 3 drilling permit granted for over 30 holes at Alkali Flats
- Drilling to test extensions and infill previous results for maiden resource estimate
- Expanded metallurgical testing underway to optimise lithium recovery
- Lithium carbonate prices have surged over 116% in seven months
- Project positioned near established lithium operations in Nevada
Phase 3 Drilling Permits and Plans
Fulcrum Lithium Ltd (ASX, FUL) has received the green light from the US Bureau of Land Management to commence its largest drilling campaign yet at the Alkali Flats lithium claystone project in Nevada. The Phase 3 program includes over 30 reverse circulation and core holes designed to both infill previous wide-spaced drilling and test extensions of known mineralisation. This significant increase in drilling density, from an average spacing of 2000 metres down to 600 metres in the project core, will provide the critical data needed for Fulcrum’s maiden Mineral Resource Estimate.
Strategic Location in the Lithium Belt
Alkali Flats sits in Esmeralda County, Nevada, a region often dubbed America’s lithium belt. The project is strategically located just 10 kilometres east of Albemarle’s Silver Peak mine, the only operating lithium mine in the US, and near other notable lithium developments such as Tonopah Flats and TLC projects. This proximity underscores the geological potential and mining-friendly jurisdiction that Fulcrum is leveraging to advance its asset.
Metallurgical Advances Supporting Development
Building on encouraging initial metallurgical results, Fulcrum has engaged Kappes Cassiday & Associates to conduct further testing on Phase 2 drill samples. These tests include hydrocyclone ore upgrading, heap and vat leaching simulations, and roast and water leach methods. The goal is to optimise lithium recovery processes, potentially lowering extraction costs and improving project economics. Core samples from the upcoming Phase 3 drilling will further inform these studies, providing vital input for a detailed metallurgical program.
Market Tailwinds Bolster Project Prospects
The timing of these developments coincides with a remarkable upswing in lithium carbonate prices, which have more than doubled, rising 116% from US$8,100 in June 2025 to over US$17,500 per tonne in early 2026. This surge is driven by sustained demand from lithium-ion battery manufacturers, particularly in China’s energy storage and electric vehicle sectors. Industry analysts forecast continued demand growth and a looming market deficit, reinforcing lithium’s status as a critical mineral for the clean energy transition.
Looking Ahead
Fulcrum’s COO Scott Keenan emphasises that the Phase 3 drilling and metallurgical programs will provide the foundational data to rapidly mature Alkali Flats towards a maiden resource estimate. As the company moves to capitalise on favourable market conditions and the project’s geological promise, investors will be watching closely for assay results and further technical updates that could unlock significant value.
Bottom Line?
Fulcrum’s next drilling phase and metallurgical insights could be pivotal as lithium prices soar and demand intensifies.
Questions in the middle?
- When will Phase 3 drilling results be released and how might they impact resource estimates?
- What are the expected cost implications of the new metallurgical processes under evaluation?
- How will ongoing lithium price volatility affect project financing and development timelines?