Lithium Australia NL (ASX:LIT) has made its maiden move into Queensland with the lodgement of an application for ground prospective for lithium in the Cape York region.
The applications are part of Lithium Australia’s expanded strategy to look Australia-wide for lithium, expanding on its current Western Australia and Northern Territory holdings.
The applications cover an area of 1,380 square kilometres.
Pegmatites are known in the area and graphite has been identified in the geological setting.
Adrian Griffin, managing director, commented: “The area we have identified in Far North Queensland shows the hallmarks we are looking for.
“It is the right geological environment, has past identification of the lithium mineral suite and has some historic pegmatite mining.”
Lithium portfolio
Lithium Australia now has projects in the following jurisdictions:
- Western Australia: The Gascoyne; Pilgangoora; Ravensthorpe; Seabrook; Lepidolite Hill;
Greenbushes; Lake Johnston; and Widgiemooltha projects;
- Northern Territory: Bynoe;
- Queensland: Cape York; and
- Mexico: A 25% interest in the Electra lithium project.
Within these projects the company has various corporate alliances and joint ventures with Pilbara Minerals Ltd (ASX:PLS), Focus Minerals Ltd (ASX:FML), Alix Resources Corp (CVE:AIX), Cazaly Resources Ltd (ASX:CAZ), Tungsten Mining NL (ASX:TGN) and Venus Metals Corporation Limited (ASX:VMC).
Sileach™ processing technology
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.
ANSTO Minerals, a division of the Australian Nuclear Science and Technology Organisation has partnered with Lithium Australia to develop the Sileach™ processing technology.
Specialist hydrometallurgical services are being provided by Murdoch University.
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
The move into Queensland adds to Lithium Australia’s expanding project suite and technological alliances over 2016 with private and government stakeholders.
The broadened nationwide search will de-risk the company’s lithium exploration portfolio by providing exposure to multiple lithium opportunities across multiple state jurisdictions.
Lithium Australia will be a first mover in the Cape York region, which like so many other areas across Australia, lithium has never been an exploration or production target.
Exploration diversity strengthens the company’s portfolio and provides the opportunity to match the best available processing technology with the mineralisation types encountered.
The initial pilot test work will aim to commercialise the Sileach™ process, which can potentially be licensed across the world.
Lithium Australia is trading up 50% year to date, currently trading at $0.25.
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