SQM’s investment is looking well-timed after Azure intersected a lithium-rich pegmatite while drilling near a nickel target at its Andover project in Western Australia.

Diamond hole ANDD0199, which was drilled to test the VC-30 VTEM nickel target, intersected a mineralised pegmatite intersection with significant visible spodumene of 7.2m grading 1.51% lithium oxide from a down-hole depth of 313.9m including 3.1m at 1.87% Li2O.

Nor was the discovery an isolated find either for Azure Minerals (ASX:AZS) and its partner Creasy Group (40%).

Holes ANDD0196, ANDD0197 and ANDD0198, which also targeted extensions of the Southern Mineralized Corridor proximal to the VC-30, VC-31 and VC-32 VTEM anomalies, all intersected pegmatites containing lithium mineralisation varying from anomalous to high grade.

“The Andover Project continues to deliver very positive results. Having defined two nickel deposits hosting robust mineral resources and then identifying multiple lithium-bearing pegmatites at surface, we have now intersected high grade lithium mineralisation in a drill hole that was specifically testing a nickel target,” managing director Tony Rovira said.

“This is further evidence of the substantial mineral endowment of Andover as a battery metals project hosting nickel, copper, cobalt and now lithium.”

Lithium exploration

Azure first twigged to the lithium potential of Andover in October 2022 after an intensive mapping and sampling program uncovered multiple lithium targets at the Andover project, which was previously targeted for its nickel, copper and cobalt potential.

At that time, individual pegmatites were found to have surface expressions of up to 500m long and 100m wide while visible spodumene was identified at multiple locations.

In November 2022, the company accelerated its lithium exploration efforts by drilling near nickel sulphide targets in areas where outcropping pegmatites were present and where drilling approvals had already been received.

Follow-up mapping around the AP0010, 0011 and 0012 prospects also confirmed that spodumene-rich pegmatites outcrop more extensively than previously recognised, enhancing the potential for this area to host a sizeable body of lithium mineralisation.

The drilling near nickel sulphide targets has now proved the presence of lithium mineralisation with ANDD0199 returning the highest grade lithium intercept while ANDD0198 at VC-31 intersected a 200m wide interval of pegmatite with a top interval of 7.4m at 0.13% Li2O from 158.6m.

At VC-32, holes ANDD0196 and ANDD0197 both intersected several shallow pegmatites
containing similar levels of lithium mineralisation.

The results indicate that SQM Australia – the wholly-owned subsidiary of global lithium producer Sociedad Química y Minera de Chile – was clearly onto something when it made its cornerstone investment of up to $20m in the company.

Forward plan

Azure will carry out an initial 30,000m drill program consisting of reverse circulation and diamond core holes to determine the scale and depth potential of the lithium mineralisation already mapped and sampled at surface.

This will focus on pegmatite outcrops that contain high lithium grades at surface and which demonstrate potential for significant volumes of mineralisation.

More attractive targets are likely to be identified given that analytical results from 600 pegmatite samples are still pending.

Additionally, project-wide geological mapping and rock chip sampling of the as yet unsampled pegmatites will continue in 2023 and are expected to define further drill targets.

 

 

 

This article was developed in collaboration with Azure Minerals (ASX:AZS), 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.

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