Lithium Australia NL (ASX:LIT) through its Goldfields Lithium Alliance (GLiA) has acquired rights to over 81 square kilometres in the Widgiemooltha pegmatite field, Western Australia.
The area is located 25 kilometres south of the globally significant Mount Marion Lithium Project owned by Neometals Ltd (ASX:NMT) which hosts 60.5 million tonnes at 1.36% lithium.
Early investigations of the area confirm an exposed pegmatite extending for 1.8 kilometres.
The GLiA is between Lithium Australia and Cazaly Resources Ltd (ASX:CAZ) and includes the historical Lepidolite Hill lithium mine.
Further fieldwork will be conducted with a plan to drill as soon as possible.
Adrian Griffin, managing director, commented:
“This acquisition further cements the partnership with Cazaly as it brings complementary expertise to our efforts in the Goldfields enabling greater penetration into the opportunities offered by the region.”
GLiA
Lithium Australia teamed up 50/50 with Cazaly to form the GLiA in May 2016.
The GLiA combines the two company's present, and future lithium mineral interests within a 100 kilometre radius of Kalgoorlie, Western Australia, for an initial period of 5 years.
The alliance enhances the technical and land management resources available to advance lithium projects within the Goldfields region.
The GLiA is the third alliance Lithium Australia has formed in Western Australia and highlights the value of the company's unique lithium extraction technology, Sileach™, which can extract lithium from any silicates without roasting.
Sileach™
Sileach™ is a market leading metal extraction technology owned by Lithium Australia.
The Sileach™ process is designed to recover lithium from silicates without the expensive roasting step that has long been the main stay of the lithium recovery process.
Testing on the Sileach™ process is continuing at ANSTO Minerals, which is in its final stages ahead of initial pilot testing.
Initial pilot testing will take place at the ANSTO Minerals facility in New South Wales after which a decision is to be made to proceed with construction of a larger-scale pilot plant, for which Port Hedland is currently the preferred location.
Analysis
This recent acquisition is evidence of the benefits Lithium Australia receives from being a part of the GLiA.
The Widgiemooltha pegmatite field contains unexplored pegmatites in a region known to host significant lithium resources as evidenced at the nearby Mount Marion development.
The infrastructure within the Kalgoorlie mining region will be a significant advantage to any potential development opportunities.
Further field work is to commence imminently with a view towards defining the true extent and prospectively of the pegmatites.
Lithium Australia is positioned well within a strong lithium market, developing both, processing technology that is potentially applicable on a global scale, and growing a portfolio of lithium projects.
The upcoming initial pilot test work with Pilbara Minerals Ltd (ASX:PLS) aims to commercialise the Sileach™ process.
Lithium Australia is trading up 75% year to date, currently trading at $0.295.
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