Astute’s under cover lithium hit supports Red Mountain exploration target

• Astute Metals’ second Red Mountain drill hole intersects two zones of lithium, boosting confidence in geological model
• Results support exploration target while confirming potential for high-grade lithium zone in northern area
• Assays pending for further four holes with results to be combined with existing exploration results to refine future drill plans

Special Report: Astute Metals has enhanced its understanding of the Red Mountain project in Nevada after its second hole intersected two intervals of lithium mineralisation. 

Hole RMDD005 was the first hole the company drilled to test for mineralisation within the area covered by its exploration target of 1136-1515Mt with a grade range of 785-1328ppm lithium (or 0.42-0.71% lithium carbonate equivalent).

It returned 80.8m at 860ppm lithium from 12.2m including 9.1m at 1349ppm from 57.9m in the eastern zone of Target Area A before striking a 15.9m zone at 955ppm from 233.2m to end of hole including 8.3m at 1209ppm from 240.8m to end-of-hole in a second, western zone of interpreted mineralisation.

The results boost Astute Metals’ (ASX:ASE) confidence in the geological model as work continues to progress while the more modest grades compared to RMDD003 support its emerging belief that the northern part of Red Mountain is likely to host a zone of high-grade lithium.

RMDD003 – the northernmost hole the company has drilled to date – extended the strike length of mineralisation to >5.6km after returning a high-grade intersection of 8.6m grading 5060ppm lithium from 67.7m within a broader 32.4m zone at 3260ppm from 57.2m.

“The results from this latest hole at Red Mountain are very encouraging, intersecting lithium mineralisation under cover exactly where the technical team expected it to be,” chairman Tony Leibowitz said.

“This provides increased confidence in the geological model that underpins the Red Mountain exploration target as we rapidly advance towards the planned delivery of a maiden JORC mineral resource estimate later this year. 

“Our exploration at Red Mountain to date indicates significant scale potential, with lithium mineralisation confirmed over a strike length of almost 6 kilometres. 

“This latest drilling is continuing to firm-up these results and reduce risk, successfully intersecting lithium between holes to delineate an increasingly robust and coherent body of mineralisation.”

Red Mountain project

ASE first staked Red Mountain in central-eastern Nevada in August 2023.

It is adjacent to the Grand Army of the Republic Highway (Route 6), which links the regional mining towns of Ely and Tonopah.

The project hosts broad mapped tertiary lacustrine (lake) sedimentary rocks known locally as the Horse Camp Formation.

Sedimentary rocks elsewhere in Nevada host large lithium deposits such as Lithium Americas’ 62.1Mt LCE Thacker Pass project, American Battery Technology Corp’s 15.8Mt LCE Tonopah Flats deposit and American Lithium’s 9.79Mt LCE TLC project.

Surface sampling by the company has indicated widespread lithium anomalism in soils and confirmed mineralisation in bedrock with some grades of up to 4,150ppm.

It has also assay results for 15 reverse circulation and diamond holes, of 19 drilled to date, that have all intersected strong mineralisation.

Proof of concept beneficiation testwork has highlighted the potential to upgrade project mineralisation while leachability testwork has indicated high leachability of lithium of up to 98%.

The company is completing core processing and awaiting assay results for the remaining four holes in its April drilling campaign.

Outcomes of this work will be integrated with surface sampling data to assist in refining its drilling plans for the second half of 2025. 

This article was developed in collaboration with Astute Metals, 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.