Usha Resources is a junior exploration company focusing on exploring and developing early-stage high-grade precious and base metal projects across North America (TSXV: USHA, OTC: USHAF, FRA: JO0). The company announced early in the year that it had received an important approval for the spinout of Formation Metals. It is now working to fulfill the remaining closing requirements, which include getting the TSX Venture exchange's final approval of the arrangement.

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Company Overview

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Usha's business strategically negotiates and buys precious metals and early-stage battery projects with low start-up costs. The company is able to transform its properties from an idea into a highly prospective project with immediate upside potential by performing prudent due diligence under the supervision of its highly experienced and diverse board and technical team. Three extremely promising projects owned by the company are the Lost Basin-gold copper, Jackpot Lake lithium, and Nicobat nickel-copper-cobalt projects. Usha Resources seeks to develop into a best-in-class mining company by responsibly and safely pursuing the essential metals needed for tomorrow's global economy.

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Jackpot Lake Project

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The Jackpot Lake Lithium Brine Property comprises 140 mineral claims covering 2,800 acres and is situated in Clark County, 35 kilometers northeast of Las Vegas, Nevada (approximately 11.3 km2). The geologic model is comparable to that of Albemarle's Silver Peak Nevada Lithium Mine, the only producing lithium mine in North America, which has been in continuous operation since 1966. The project target is a 5 x 2 km anomaly that was found based on the following research, which points to the presence of a highly concentrated brine:

• The potential for lithium mineral deposits was confirmed by spectrographic and atomic-absorption analyses of 135 stream sediment samples and data from 129 core samples that the USGS collected, with an average lithium value of 175 ppm and a high of 550 ppm. Currently, Albemarle's project has an average grade of about 121 ppm.
• A closed basin was found by gravitational surveying, which is important to ensure that brines stay inside the basin without being diluted by outside water sources.
  Gravitational and controlled source audio magnetotellurics/magnetotellurics (CSAMT/MT) surveys used in geophysical modeling have revealed the presence of highly concentrated brines relatively close to the surface. 
• The Jackpot Lake Project's CSAMT survey results show a significant, consistent body of very low resistivity throughout the property, primarily above ground. This behavior is consistent with highly concentrated brine.

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Lost Basin project

133 mining claims make up the gold-and-copper project known as Lost Basin, located in Mojave County, Arizona, USA. The project has many benefits:

• Situated in a world-class mining-friendly jurisdiction with simple laws able to run continuously; has good access to roads
• Only limited shallow drilling reveals significant zones of "blue sky" potential bulk gold mineralization.
• Numerous high-grade gold grades at the surface support the viability of economic mining.
• Exploration will concentrate on regions with scant or no drilling history.

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Gold-bearing quartz veins are the most well-known form of mineralization in the Gold/Lost Basin District. Copper mineralization, frequently visible as malachite staining, is also seen throughout the property, according to limited mining results, which have indicated grades averaging 11.34 g/t Au. LB-10's drill hole produced 56 meters of 0.21% Cu.

Nicobat project

Nicobat is a nickel-copper-cobalt project in the Rainy River District in northwest Ontario, Canada. Mine development is ongoing in the area, with excellent access to roads, trains, power, and water. A 1,860-meter, 10-hole drilling program that Crystal Lake Mining completed in 2015 proved the existence of high-grade nickel-copper shoots that are significantly better than those previously noted in the historical drilling program (Drill hole A-04-15 intersected a weighted average of 1.05% nickel and 2.18% copper from the surface to 63.75 meters.)

Future efforts at Nicobat will concentrate on a $250,000 program to drill farther at the EL1 claim:

• Using its 3D model, the company targeted a 1,500-meter drill program to intersect both known and new mineralization below the known breccia-hosted mineral zone.
• To find highly conductive massive sulfides, complete borehole EM surveys.
• Follow-up drilling to find the best targets based on mineralization and/or EM anomalies
  

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Share Structure/Financials

The company shared its financial statements for the period ending September 30, 2022. Usha has a solid balance sheet with $1.6M in cash for no debt. Usha Resources doesn’t have many expenses as the company just spent less than $300k, and the most significant expenses were accounted for consulting fees. Usha Resources has a very attractive share structure. Indeed only 35.6M shares are issued and outstanding, 2.3M options and 8.5M warrants are available. 

Despite the CSE’s valuation decrease, the company’s market cap remained relatively steady, showing strong interest from investors. The stock price is worth $0.28, and witnessed a 52-week range variating from  $0.205 to $0.39.

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Bottom Line 

Usha Resources  (TSXV: USHA, OTC: USHAF, FRA: JO0) is well-fund ($1.6M in cash), has a small share structure (35.6M shares outstanding), and the approval for the previously announced proposed spin-out of its wholly owned-subsidiary Formation Metals Inc. Varshney providing a 20% “share dividend” to shareholders at no cost brings more excitement regarding the company. The company is definitely attractive and shows a lot of upsides. 

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