Fieldwork by Lithium Australia NL (ASX:LIT) at its Ravensthorpe Lithium Project in Western Australia has resulted in the discovery of several additional lithium pegmatites, nearby to the Mt Cattlin lithium mine operated by Galaxy Resources Ltd (ASX:GXY).
This continues the strong run of news flow from LIT at Ravensthorpe and after it recently signed a joint venture agreement with Toronto listed Alix Resources (TSX:AIX) to explore in the world’s largest lithium clay province in Sonora, Mexico.
This follows LIT establishing a presence in the greisen deposits of Europe through its relationship with European Metals Holdings (ASX:EMH).
As well LIT has exclusive access to a processing technology for the production of lithium chemicals from silicates including the clays, micas and spodumene without the requirement to roast before leaching.
Today's news ups the valuation case again as the discovery of 12 outcropping lithium pegmatites by LIT at Ravensthorpe comes at a time of a hot lithium sector as demand for lithium-ion batteries is increasing, significantly.
The Ravensthorpe project area contains the Cocanarup Lithium Pegmatites, located only a few kilometres to the south-west of the Mt Cattlin lithium mine operated by Galaxy Resources and General Mining Corporation Ltd (ASX:GMM).
Adrian Griffin, managing director, said the Ravenshorpe area is well known for its spodumene which is the focus of the nearby Mt Cattlin mining operations.
"The project is well supported by established transport routes, nearby infrastructure and services at Ravensthorpe. The large, deep water port of Esperance is 185 kilometres east of Ravensthorpe.
"We see the area as an important part of our thrust to develop a local lithium chemical industry.
"With the application of our 100% owned Sileach™ process, we have the ability to handle both the lepidolite and spodumene to produce lithium carbonate or hydroxide – critical inputs to the insatiable lithium battery industry.”
Deep Purple
The well named Deep Purple Prospect is comprised of a swarm of at least 5 lithium pegmatites, including two spodumene pegmatites similar in character to nearby Mt Cattlin.
Weathered spodumene was chipped from the outcrop which assayed 30650ppm Li, which equates to a handy 6.60% Li2O.
While the Phillips South Prospect is a large, under-explored area in which recent fieldwork demonstrated the presence of outcropping lithium mineralisation and very high potential for further discoveries undercover.
This prospect is comprised of several small outcrops of pegmatite that could be a precursor to a single, large pegmatite more than 500 metres long. Lithium mineralisation has been sampled at one location.
At the “Horseshoe prospect” there was a previous an exploration target of 900,000 tonnes of lithium mineralisation at a minimum grade of 1% Li₂O (with a size range from 525,000 tonnes to 1,281,000 tonnes and grade range of 0.8% - 1.2%.
Next steps in exploration
Mapping and rock-chip sampling, accompanied by stream-sediment sampling is planned for the Phillips South Prospect.
Soil sampling will be completed at the Phillips South Prospect and also at, and north of, the Deep Purple Prospect, as well as 1 kilometre west of the Horseshoe Prospect.
While the Deep Purple Prospect is already considered a definite drilling target, the results of the soil sampling will assist optimisation of a drill program.
Drilling appears likely to be the best option to adequately test the Phillips South Prospect with planned work to ensure that the best drilling locations are selected.
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