IPO Watch: Evergreen Lithium says its more than just a Core nearology play
Gearing up to list on in the coming fortnight after IPOing at $7 million at $0.25 per share is explorer Evergreen Lithium (ASX:EG1) who’ve got some prime landholdings adjacent to Core Lithium (ASX:CXO) and its producing Finniss mine in the Northern Territory.
But chief technical advisor Jason Ward says the flagship Bynoe project is more than just about being next door to a big deposit.
“The initial geochemistry found really big lithium anomalies and they appear to be right next to Core Lithium’s anomalies and contiguous with them,” he told Stockhead.
“It’s not simply a nearology play, they’re contiguous geochemical samples to their mine.
“Right up in the north where they’re mining the Grants deposit, we see some north-east trending features and that correlates well with our lithium in soil anomalies there.
The other one is right next to their BP33 deposit, where we appear to have contiguous geochemical samples right next to that as well.”
The company did some fieldwork last year, and Ward says what he really liked about the project is, while there’s no exposed pegmatites, there’s visible quartz rubble and some muscovite rubble on the ground, which are indications that there were pegmatites which have eroded.
To date the company has completed an Ambient Noise Topography (ANT) Survey and commenced field mapping and stage 2 soil, rock chip and termite mound sampling at the Bynoe project – which for context is has an enormous project area of 230km2.
“Core had announcements about it where they raved about how well it detected their pegmatite bodies – the ones they had actually drilled – so we are using the same methodology,” Ward said.
“Over the next couple of months or so we’ll interpret those and we expect to have a significant amount of news flow because, even while we’re waiting for drilling, we’ve got four survey areas where we’ve completed the ANT surveys so we’ll interpret and publish those, one at a time.
“I’m sure Core Lithium will be very interested because they believe in and use the technique and if they’re coincident with our geochemical anomalies that means walk up drill targets.”
The plan is to kick off drilling at the project asap, but there’s a fair big of geochemistry and geophysics to do first, Ward says.
Evergreen also holds the Kenny (NT) and Fortune (WA) lithium projects, which means that while the wet season is in full swing in the NT, the company can keep working in WA.
“The Fortune is down between Tennant Creek and Alice Springs, there’s another Core Lithium project adjacent to that one as well, it’s on Aboriginal Land and we’ve had good dialogue with the Central Lands Council and I’m actually heading down for a meeting in late March with the Traditional Owners,” Ward said.
“That’s a big area as well, something like 700km2.
“The fact that we have this holding enables us to work year-round too because in the wet season in Darwin we’ve got three months of the year where we can’t get onto the ground.”
The plan is to liaise with the locals, get their approval and permission and then undertake some geochemistry and maybe some geophysics.
At the Kenny project, the company has already completed a soil augur drilling program.
“The assay results are pending, and we expect will be published following the company’s listing, sometime in late March,” Ward added.
“The follow up program to be undertaken will interpret those geochemical results, and we’ll get out there and do some mapping.”
When asked what makes the company stand out from other lithium explorers, Ward flagged the highly experienced and active board; access to capital markets and a lot of people involved with the company have been involved in other successful lithium companies, as well as with other commodities.
“Our chairman Simon Lill is also the chairman of De Grey Mining which Australia’s largest gold discovery in the last 10-20 years,” he said.
“There’s Chris Connell, who worked for Sol Gold. I also worked for Sol Gold, and we found the biggest undeveloped gold mine in the world and the third biggest copper mine, in Ecuador.
“I’m still a technical advisor for Sol Gold and chief technical advisor for Evergreen.”
But it’s the location of Bynoe in particular that really makes it stand out from the pack.
“I’m very excited about this project for a variety of reasons, including the fact relating to the logistical advantages of Bynoe,” Ward said.
“We are located right next to the harbour, just out of Darwin, and the NT Government is very supportive of our type of projects.
“I’ve worked overseas for the last 20 years and it’s very difficult to operate in some countries In Australia however we have a lot of support in various forms from government.”
Not to mention the fact that Core Lithium is right next door.
“What they’re doing is beneficial for us,” Ward said.
“They’re now in production, and this represents a great opportunity for Evergreen.”