Lithium Australia NL (ASX:LIT) is earning a 49% stake Electra project at Sonora in northwest Mexico, and has an option to extend that to 65% from project owner, Canada’s Alix Resources Corp (AIX-TSX:V).
The early signs are very promising for the joint venture partners, with a third of new samples from lithium-rich clay layers in October 2016 Agua Fria discovery, assay above 1,000 parts per million (ppm) lithium.
The lithium clay horizons now extend around 4.5 kilometres along strike and indicators of up to 800 metres in width.
The partners are planning maiden drilling in the March quarter 2017.
Adrian Griffin, managing director for LIT, commented:
"Fertile clays, within the geological environment of Electra, generally exhibit low lithium grades so to get these remarkable, in excess of 1,000 ppm results, is significant so early in a new project’s life span.
"Grades in the range of 100-200 ppm lithium may be considered to be anomalous but grades in excess of 1,000ppm are often included in resource calculations, so Agua Fria has literally leapt out of the starting blocks on data known to date.
"The drilling outcomes however, will be the real determinant of this prospect’s true potential at depth."
Lithium Australia portfolio
Lithium Australia has projects in the following jurisdictions:
- Western Australia: The Gascoyne; Pilgangoora; Ravensthorpe; Seabrook; Lepidolite Hill; Greenbushes; Lake Johnston; Donnelly River; and Widgiemooltha projects;
- Northern Territory: Bynoe;
- Queensland: Cape York; and
- Mexico: Growing 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), Venus Metals Corporation Limited (ASX:VMC) and Lefroy Exploration Ltd (ASX:LEX).