Nevada Lithium Resources (TSXV:NVLH) saw its shares surge on Wednesday following the announcement of a partnership with South Korea’s Hydro Lithium aimed at advancing extraction of critical minerals from its flagship Bonnie Claire project in Nevada. The stock gained as much as 23% by midday, pushing the Vancouver-based company’s market capitalization to C$46.8 million ($33.7 million).

Partnership Details

The collaboration was formalized through a letter of intent signed on September 7. The agreement outlines the potential use of Hydro’s proprietary technologies, developed by CEO Dr. Uong Chon, for the recovery of lithium and other elements designated as critical minerals in the United States. The framework also extends beyond Bonnie Claire, with provisions for joint work on additional North American projects.

Hydro Lithium currently operates a facility in Geumsan-gun, South Korea, with an annual production capacity of 3,600 tonnes of battery-grade lithium hydroxide and lithium carbonate. At Hydro, Dr. Chon has developed technologies including CULH, which produces battery-grade lithium chemicals, and CULX, designed to extract lithium from natural resources.

In a statement accompanying the partnership news, Dr. Chon emphasized the significance of applying CULX to the U.S. market: “The US hosts numerous potential sources of critical minerals, including lithium, many of which may pose challenges to economically viable extraction. Our proprietary technology, CULX, addresses these challenges.”

Bonnie Claire Project Economics

Nevada Lithium CEO Stephen Rentschler said the company will evaluate Hydro’s technologies alongside the economic projections recently updated for Bonnie Claire. The project, a sediment-hosted lithium-boron deposit, has undergone extensive study in the past three years, including the discovery and expansion of a deeper mineralized zone.

A preliminary economic assessment (PEA) released in early August outlines an underground mining operation using a hydraulic borehole method. Production is projected at 2.92 million tonnes of lithium-bearing material annually, grading 4,500 parts per million. From this, the operation could generate 62,354 tonnes of lithium carbonate equivalent and 129,533 tonnes of boric acid each year.

The PEA estimates a 61-year mine life, with pricing assumptions of $24,000 per tonne for lithium carbonate and $950 per tonne for boric acid. Under these conditions, Bonnie Claire would deliver an after-tax net present value (at an 8% discount rate) of $6.83 billion, marking a fourfold improvement compared to a 2021 assessment. The study also projects an internal rate of return of 32.3% and payback on the $2.1 billion initial capital investment in less than three years.

Rentschler also highlighted the scale of the Nevada deposit, noting in an August 6 press release that “Bonnie Claire has emerged as one of the world’s largest and highest-grade sedimentary-hosted lithium and boron deposits, and remains open for expansion. The potential for even higher grades and volumes could positively impact the PEA economics already demonstrated.”

The CEO also drew attention to Dr. Chon’s earlier role in developing PosLX, a lithium extraction technology now used by South Korea’s POSCO, underscoring the technical experience being brought into the Nevada project.

Nevada Lithium gained full control of Bonnie Claire in 2023 after previously holding it under a 50/50 joint venture with Iconic Minerals (TSXV: ICM). With ownership consolidated, the company is pursuing partnerships and technology collaborations to accelerate development.