Classic Minerals has won a race to pick up extra ground at its West Australian Forrestania gold project — and now plans to look for lithium as well.

“We see the belt as under-explored in terms of gold and lithium and the new tenements host attractive greenfields targets which will be followed up in due course,” chief Dean Goodwin told shareholders.

Classic Minerals (ASX:CLZ) was granted one tenement and won a ballot process for another two tenement applications at the Forrestania project about 120km south of Southern Cross, Western Australia.

The tenements, which add 50 sq km to Classic Mineral’s local landholding, lie along strike from Kidman’s (ASX:KDR) major Earl Grey lithium discovery.

“Which explains why there was competition for the ground resulting in a ballot being drawn in the Wardens Court to determine priority,” Mr Goodwin said.

Kidman recently announced it had increased the Earl Grey resource by 54 per cent to 189 million tonnes of 1.5 per cent lithium oxide, or 7 million tonnes of lithium carbonate equivalent.

Kidman is targeting the lithium hydroxide and lithium carbonate markets.

Lithium hydroxide is mainly used to produce lithium greases, but it is also used as a heat transfer medium and as a storage-battery electrolyte.

Battery-grade lithium carbonate is used to make cathode material for lithium-ion batteries.

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Classic Minerals says the new tenements will expand its Forrestania project to more than 500 sq km, making it a major landholder in the region.

Drilling is slated to begin in mid-April.