Lithium Energy Ltd (ASX:LEL) has issued a report noting progress over the June quarter with pivotal acquisitions, including a 51% interest in the Capricorn Gold-Copper Belt Project in Queensland, while the company continues to make headway in its exploration efforts at the White Plains Lithium Brine Project in Utah, United States.
In addition to acquisitions, Lithium Energy is actively enhancing its exploration capabilities, securing government funding and advancing geophysical surveys in Queensland. It is also progressing the sale of its Solaroz Lithium Brine Project in Argentina and reassessing its strategy for its graphite assets in Queensland, while working to reinstate its securities with the ASX.
Capricorn Project: Progressing exploration and government-backed funding
During the quarter, Lithium Energy secured $250,000 in Queensland Government Collaborative Exploration Initiative (CEI) funding for its Bajool Prospect, within the Capricorn Gold-Copper Belt. The company will use the funds for a comprehensive geophysical survey, including a 3D Direct Current Induced Polarisation (DCIP) and Magnetotelluric (MT) survey, designed to enhance exploration for potential copper and molybdenum mineralisation at the Bajool porphyry prospect.
Capricorn Gold-Copper Belt Project Tenements.
The Bajool area has already demonstrated significant potential, with historical drill results confirming grades up to 3.22% copper and 252ppm molybdenum. Lithium Energy plans to expand this mineralisation with further geophysical work, aided by the CEI grant, which will provide high-resolution, deep-targeting data to guide upcoming drilling programs.
Location Map of Capricorn Gold-Copper Belt Project showing Bajool Prospect.
Drill Core photos from the Queensland Mines Department Core Library, Zillmere, D28-DDH4 Tray 22, from 158.1- 164.6m.
The company’s recent acquisition of a 51% stake in the Capricorn tenements further strengthens its position in this high-potential region. The Capricorn Project, which covers 1,795 km², is strategically located near the historic Mt Morgan gold mine, known for its substantial gold and copper production.
White Plains Project: Advancing exploration efforts
In Utah, Lithium Energy made headway over the quarter with its White Plains Lithium Brine Project. The company has staked a total of 6,870 hectares across 796 claims, targeting lithium brine mineralisation in an area with a proven track record of mineral-rich salt pans.
The recent passive seismic survey completed at White Plains revealed a depth to basement of up to 600 metres, providing an encouraging geological framework for the presence of lithium-rich brine. In addition, shallow auger sampling and Magnetotelluric (MT) surveys have been carried out, with results expected soon.
Location of White Plains Lithium Brine Project, Utah, United States.
Solaroz Project: Ongoing sale process
Lithium Energy continues its divestment of the Solaroz Lithium Brine Project, with the sale of its 90% interest in the project progressing. The company received US$33.8 million (~A$52 million) for the first tranche of the sale, with the second tranche, valued at US$21.7 million (~A$33.4 million), due to be completed in January 2026.
The proceeds from this sale will support Lithium Energy’s ongoing exploration efforts and future acquisitions.
Graphite spin-out: Adjusting strategy
The proposed spin-out of Lithium Energy’s high-grade graphite assets into Axon Graphite Ltd has been postponed due to prevailing market conditions. While the IPO of Axon Graphite is currently on hold, the company is exploring alternative pathways for the development of its graphite assets, which include the Burke and Corella projects in Queensland.
ASX reinstatement, financial summary
Lithium Energy remains engaged with the ASX to satisfy the criteria required for the reinstatement of its securities to quotation. The company has been actively working towards securing new projects and advancing its existing initiatives to meet the ASX's requirements, with a goal to reinstate its shares as soon as possible.
Lithium Energy ended the June 2025 quarter with a strong cash position of $43.04 million, bolstered by the sale of its interest in the Solaroz Lithium Brine Project.