Disseminated on behalf of Surge Battery Metals Inc.
Surge Battery Metals has announced a major resource upgrade at its flagship Nevada North Lithium Project (NNLP). This boosts the company’s position in the growing U.S. lithium supply chain race.
The updated mineral resource estimate outlines 657.4 million tonnes grading 3,007 ppm lithium, containing 10.5 million tonnes of lithium carbonate equivalent (LCE) in the Measured and Indicated category. The estimate also includes 6.7 million tonnes LCE grading 3,820 ppm lithium, highlighting the project’s high-grade core zones.
The new figures mark a major step forward for NNLP as the project moves from exploration success toward development-stage validation. The upgrade also comes as the United States pushes to expand domestic lithium supply to support electric vehicles, battery manufacturing, and energy storage growth.
Mr. Greg Reimer, President, Chief Executive Officer, and Director of Surge, stated,
“This resource update is a watershed moment for Surge and our joint venture partners at Evolution Mining. Delivering over 10.5 million tonnes of LCE into the Measured and Indicated category at grades exceeding 3,000 ppm Li underscores the significance of the NNLP deposit. This MRE highlights the sheer scalability of the NNLP with the PEA mine plan only using 3.6Mt of the M&I resource. The primary objective of this MRE update was to de-risk the resource for the Pre-Feasibility Study, and the geological data has emphatically delivered.”
Resource Confidence Improves as More Material Moves Into M&I Category
One of the most important parts of the update is the sharp increase in Measured and Indicated resources, often referred to as the M&I category.
Measured and Indicated resources carry higher geological confidence than inferred resources. They are more useful for mine planning, engineering studies, financing, and future permitting work.
The company reports that 87% of the material in the current Preliminary Economic Assessment (PEA) pit shell is now in the M&I category. This is an important milestone because it reduces uncertainty around the existing mine plan.
The new estimate includes an additional 3.1 million tonnes LCE in the inferred category. This allows for future growth and more drilling potential.
NNLP Resource Far Exceeds Current PEA Mine Plan
Another key takeaway from the resource update is the scale difference between the current mine plan and the overall resource base. The company’s existing PEA uses only about:
- 3.6 million tonnes LCE grading 4,016 ppm lithium
- compared to the newly updated 10.5 million tonnes LCE M&I resource
This suggests the project may support a much larger operation or a longer mine life than originally modeled. The PEA released earlier by the company outlined:
- an after-tax net present value (NPV8) of about US$9.17 billion
- an after-tax internal rate of return (IRR) of 22.8%
- estimated operating costs of around US$5,243 per tonne LCE
Those economics helped position NNLP as one of the more closely watched lithium clay projects in the United States.
High Grades Continue to Stand Out Among U.S. Clay Lithium Projects
Grade remains one of NNLP’s strongest differentiators.
The updated resource maintains lithium grades above 3,000 ppm across large portions of the deposit, while some zones exceed 3,800 ppm lithium. These grades compare favorably with several other U.S. lithium clay projects currently under development.
Higher-grade deposits can offer important advantages, including:
- more lithium produced per tonne mined,
- potentially lower processing costs, and
- improved project economics over time.
The project’s location in Nevada also adds to its strategic relevance. Nevada is now one of the most important lithium regions in North America as automakers and battery companies look for domestic supply sources.
- SEE MORE: Surge Battery Metals Strengthens Nevada North With High-Grade Expansion and Infill Success
New Drilling and Geological Modeling Strengthen Confidence in NNLP Resource
The updated resource estimate comes from a major drilling and geological modeling program done at the NNLP deposit.
The 2025 infill and step-out campaign involved nine drill holes totaling 4,634.5 feet (1,412.6 meters). This work supported the updated Mineral Resource Estimate.
Engineering firm RESPEC used drilling data and 3D geological models prepared by the company to identify and estimate lithium-bearing clay zones in the project area.
The process included:
- statistical analysis of lithium grades within key clay units
- geostatistical modeling to improve estimation confidence
- construction of a large block model to map lithium distribution throughout the deposit
The lithium grades were interpolated into a block model, which used 50-meter by 50-meter horizontal blocks and 5-meter vertical intervals. This method improved understanding of the deposit’s size, continuity, and grade distribution. The company also outlined several areas that could support future resource growth and grade improvements.
One opportunity comes from tighter drill spacing in areas with lower drill density. Surge believes additional infill drilling could improve grade estimates in these zones, similar to results seen in the recent infill program.
The company also plans to expand its higher-grade lithium footprint, where zones grading above 3,000 ppm lithium remain open to the south and east of the basin.
Also, new high-resolution topographic surveys found shallow areas. These spots could lead to more tonnage growth, especially in the northeast part of the project. These findings show that NNLP can grow beyond the current resource model. This is possible as drilling and engineering work keep progressing.
PFS Work Advances as Surge Pushes Toward Development
Surge Battery Metals is now advancing work toward a Pre-Feasibility Study (PFS), targeted for completion in the fourth quarter of 2026.
The company also continues to benefit from its partnership with Evolution Mining, which entered a joint venture with Surge and committed up to C$10 million to fund the Pre-Feasibility Study.
The combination of the following helps strengthen NNLP’s position as it moves further along the development path:
- a larger M&I resource,
- strong lithium grades,
- positive PEA economics, and
- growing regional validation in Nevada.
Nevada Lithium Gains More Attention as Thacker Pass Advances
The broader Nevada lithium sector has gained momentum following major investments and development activity in the region.
Lithium Americas’ Thacker Pass project continues moving toward production. This helps validate Nevada clay lithium as a commercially viable resource. General Motors also committed roughly $625 million to support the project, marking one of the largest automaker investments ever made in a U.S. lithium development project.
That progress matters for companies like Surge Battery Metals because it helps reduce concerns about developing clay-hosted lithium deposits in Nevada.
As more infrastructure, processing knowledge, and investment move into the region, nearby and next-generation projects such as NNLP may benefit from growing industry confidence.
NNLP Emerges as a Key U.S. Lithium Growth Asset
The latest resource upgrade marks an important milestone for Surge Battery Metals (NILI) and its Nevada North Lithium Project.
By significantly increasing higher-confidence Measured and Indicated resources, the company has strengthened the project’s development profile while also highlighting the larger long-term scale potential of NNLP.
At the same time, growing U.S. interest in domestic lithium supply continues to support Nevada’s importance in the North American battery supply chain.
As lithium demand rises and new supply becomes increasingly important, projects that combine scale, grade, and improved development confidence are likely to remain in focus across the sector.
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