Can Venari Turn Its Inferred Lithium Resource into a Mining Reality?

A Significant Lithium Discovery in Nevada

Venari Minerals NL (ASX – VMS) has delivered a landmark maiden Mineral Resource Estimate (MRE) for its 100%-owned Red Mountain Lithium Project, located in the mining-friendly jurisdiction of Nevada, USA. The inferred resource totals 500 million tonnes of lithium-bearing sediment at an average grade of 1,139 parts per million (ppm) lithium, equating to 3.03 million tonnes of contained Lithium Carbonate Equivalent (LCE). This positions Red Mountain as one of the most significant new lithium developments in North America.

High-Grade Zones and Strategic Location

The resource estimate highlights a high-grade northern zone with 91.6 million tonnes at 1,618ppm lithium, including a standout component grading 2,193ppm lithium. The central zone adds a substantial 408 million tonnes at 1,031ppm lithium. Notably, the mineralised rocks outcrop at surface and remain open at depths exceeding 250 metres, suggesting considerable upside potential.

Red Mountain benefits from its strategic location adjacent to Route 6, close to major mining hubs Ely and Tonopah, and within 20 kilometres of the ‘Nevada One’ 525kV transmission line. The project also boasts secured private water rights, a critical asset for lithium extraction operations in arid Nevada.

Robust Metallurgical Profile and Market Timing

Venari’s metallurgical test-work has demonstrated excellent lithium recoverability, with leachability rates up to 98%, and beneficiation processes that effectively upgrade lithium content while reducing acid consumption. These results underpin an economic pathway to lithium carbonate production directly from the claystone-hosted deposit.

The timing of this maiden resource announcement coincides with a strong resurgence in lithium prices, with battery-grade lithium carbonate prices on the Shanghai Metal Market more than doubling in the past three months to over US$20,000 per tonne. This price environment enhances the project's economic prospects and attractiveness to investors.

Exploration Upside and Next Steps

Venari has identified multiple high-priority drill targets outside the current resource boundaries, supported by extensive soil and rock-chip sampling campaigns revealing strong lithium anomalism. The company plans an aggressive 2026 drilling program aimed at infill and extensional drilling to upgrade the resource classification from inferred to indicated and potentially measured categories, as well as to expand the resource base.

Additionally, Venari has submitted an Exploration Plan of Operations to the U.S. Bureau of Land Management, which, once approved, will allow for expanded drilling activities under expedited provisions. The company is also advancing metallurgical test-work and scoping-level development studies, supported by the engagement of engineering consultants.

Positioning in the ASX Lithium Landscape

With this maiden resource, Venari now ranks among the larger lithium explorers on the ASX by contained LCE, despite the resource currently being classified as inferred. The company’s counter-cyclical strategy; advancing exploration during a period of subdued lithium prices; has positioned it well to capitalise on the current market upswing and supportive U.S. critical minerals policies aimed at boosting domestic lithium production.