Neometals (ASX:NMT), Mineral Resources (ASX:MIN) and Chinese partner Jiangxi Ganfeng Lithium (SZSE: 002460) have begun resource expansion drilling at the Mt Marion lithium project in Western Australia.
The reverse circulation and diamond drilling program is aimed at extending the open pitable minelife of existing deposits, as well as the definition of new resources from outcropping pegmatite prospects on lithium rights acquired from Metals X (ASX:MLX) in July.
The exploration target has been set at 15 – 25 million tonnes at a grade of 1.1-1.4% Li2O, which indicates potential for a substantial increase in the Mt Marion resource.
Total indicated and inferred resources at the project currently stand at 23.2 million tonnes at 1.4% Li2O only 40 kilometres southwest of Kalgoorlie.
The drill program is expected to be completed in the March quarter 2016, with an upgraded resource estimate and ore reserve planned to be completed in the June quarter 2016.
Following a positive final investment decision in September, Mt Marion has recently entered a construction phase with first production expected by mid-2016.
Once in production, it will produce more than 200,000 tonnes per annum of chemical-grade spodumene concentrate.
Jiangxi Ganfeng Lithium has already agreed to a life-of-mine offtake deal at the project.
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