Gold Mountain Finds Potential Lithium Pegmatites in NE Brazil

Gold Mountain’s high level regional field reconnaissance and due diligence work on the four lithium project areas in Brazil have discovered potential lithium-bearing pegmatites.

Pegmatites in NE Brazil had not previously received any exploration for Lithium which gives the JV a head start in exploring the potentially rich region.

These pegmatites were observed in outcrop and sub-crop on both the Custodia and Juremal projects while initial updates on the Cerro Cora and Porta D’Agua project is pending and the Jacurici project has yet to be visited.

Gold Mountain (ASX:GMN) noted that field observations confirmed the presence of numerous pegmatites of varying widths had been traced for 1,100 metres in strike length though further mapping is required to confirm full continuity and trace the further extent of the swarm.

Part of this particular swarm is thought to be present in one of the tenements in which several additional occurrences of visually identified spodumene are present.

“I am very pleased with feedback I am receiving from the geological team in the field, and it is exciting to hear that they have observed pegmatite outcrops potentially containing spodumene in this first pass reconnaissance program,” chief executive officer Tim Cameron said.

Initial rock chip sampling has commenced at Custodia and Juremal with additional work planned in the weeks ahead.

The company will submit rock chips collected during this program to laboratories in Australia and Brazil for analysis with initial results expected within a month of submission.

Mars Mines deal

Gold Mountain had signed a binding heads of agreement with Mars Mines in September to acquire up to 75% in the four Brazilian lithium licences.

All four projects are located in areas known to host lithium-bearing pegmatites and are along strike from and covering known pegmatite bodies.

Subject to shareholder approval, the company plans to acquire an initial 20% in the Cerro Cora and Porta D’Agua, Custodia, Juremal and Jacurici project areas through the issue of shares and options to Mars.

It can then earn a further 55% through incurring project expenditure of $2.75m over a two-year period.

This article was developed in collaboration with Gold Mountain (ASX:GMN), a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.