Lithium Australia NL (ASX:LIT) (OTCMKTS:LMMFF) (FRA:3MW) welcomes an update from joint venture partner Galan Lithium Ltd (ASX:GLN) on exploration at the Greenbushes South Project in Western Australia.
Galan recently completed a review of historical CSIRO data that enhances the prospectivity of the project.
This work has defined geochemical anomalies within the laterite soils across the Greenbushes region due to the dispersion of minerals and elements during extensive weathering of the mineralised lithium-tin-tantalum pegmatites.
Lithium Australia has a 20% JV interest in the Greenbushes South Project and also holds 1.221 million fully paid ordinary shares in the capital of Galan.
Regional prospectivity
CSIRO’s historical datasets show prospectivity for the project with an elevated abundance of pathfinder elements displaying a well-defined anomaly adjacent to Greenbushes South.
The study was undertaken before Talison Lithium Pty Ltd’s world-class Greenbushes Lithium Mine (3 kilometres away) began production, when the ore deposit was still concealed.
This study confirmed the feasibility to explore for a concealed deposit of this style of mineralisation.
Elements such as arsenic, tantalum, tin and antimony (among others) were used to define the anomaly and were centred over the deposit.
Arsenic anomaly in laterite soils.
Exploration plans
Galan will pay the company’s joint-venture expenditure share until completion of a preliminary feasibility study.
Data will now be augmented by extending the coverage of soil sampling from the historical data sets, with a focus on the most anomalous area to the northeast of the Greenbushes South holding.
Mapping and rock chip sampling will also be undertaken with the objective to confirm historical data and define extensions of geochemical anomalies and, therefore, potential mineralisation into Galan’s Greenbushes South tenure.
These results would then be used to delineate potential targets for further exploration such as drilling.