Kairos Minerals Ltd’s (ASX:KAI) shares should rise after it received results from initial exploration at its Mt York Lithium-Gold Project in the red hot Pilgangoora region of Western Australia.
The best results returned 2.22% lithium (Li₂O) and 0.44% tantalum (Ta₂O₅) and which provide a good base for a deeper exploration program.
This will see mapping, rock chip and soil sampling activities to refine high priority targets in preparation for a drill program.
Promisingly, historical mapping and drilling confirmed the presence of both outcropping and subsurface pegmatites throughout the project area.
The project is situated in a lithium hotspot, near Pilbara Minerals Ltd’s (ASX:PLS) world-class Pilgangoora Lithium Tantalum Project, as well as the Altura Mining Ltd (ASX:AJM) lithium project.
The demand for lithium continues to grow, with the price of 99% pure lithium imported to China increasing 42% during the six months leading up to May.
Moreover, Goldman Sachs has forecasted that electric vehicles will take up 3.5% of the new car market by 2025, causing lithium demand to triple.
Along with lithium, Kairos is exploring for gold at the Mt York and Wodgina East projects in the Pilbara region.
The company is aiming to fund its exploration with a $1.35 million capital raising and pro-rata offer to existing holders of listed options at an issue price of $0.01 per new option.
The company had a cash balance of $889,000 as on 31 March 2016.
Kairos Minerals was earlier known as Mining Projects Group.
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