Eye on Lithium: A ‘watershed moment’ arrives for this junior lithium stock
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All your lithium news, Wednesday October 19.
Capital raisings, mineral resources estimates, and high-grade lithium results are among some of the news headlines from lithium juniors today but the biggest scoop came from ~$106.4m market cap explorer, Lithium Energy (ASX:LEL).
LEL announced a ‘major lithium discovery’ from the first hole of its first drilling program at the Solaroz Lithium Brine Project in Brazil, which encountered significant levels of lithium brine concentrations in excess of 400 mg/l.
The news sent shares in the stock surging some 27% and has been described by LEL’s executive chairman William Johnson as a “watershed moment.”
$LEL Looks yuge
— Stockrocker (@Stockrocker_ASX) October 19, 2022
“This further confirms the potential for the Solaroz Project to host a significant resource of lithium brines in what is probably the best location globally to have a lithium discovery,” he says.
“With assay results showing that lithium concentrations in this first hole increase at depth, the company is now looking forward to assay results from sampling the target lower aquifer, as drilling continues to its target depth of 400 metres.”
A well-balanced day with the ASX closing 0.31% higher – 51 lithium companies ended the day in the green, 51 fell flat and 31 stocks tumbled into the red zone.
Lithium project developer LPD says met testwork has confirmed “very clean” lithium hydroxide crystals using its LOH-Max design.
“The recovered product satisfies Livent and Targray battery grade specifications for lithium hydroxide monohydrate,” the company says.
“This represents a major gating item for closing out due diligence and finalising Project lending.”
ENR says a Northern Territory Geological Survey (NTGS) highlights strong lithium potential in several areas of the Sandover project.
The survey interpreted the pegmatites in the area to host lithium-caesium-tantalum similar to the lithium deposits at Greenbushes in WA, as well as the Finnis deposit owned by Core Lithium (ASX:CXO).
Initial on ground assessment will begin shortly and will include sampling of outcrops and a trial of surface geochemistry at the Crawford target.
RMI has secured firm commitments for a placement totalling $2.427 million at a 10% premium to the last traded price.
Funds raised from the placement will be primarily applied towards exploration activities at the company’s ‘Massive Nickel’ project portfolio in Tanzania, for potential future exploration activities at the Finland Nickel and Lithium projects currently under exclusive option until November 15, as well as for general working capital.
High grade lithium assay results have been received from a pegmatite exploration program on the Andover Project.Numerous outcropping spodumene-bearing, lithium-rich pegmatites confirmed after hitting up to 3.32% Li2O – the highest lithium grade reported to date at the project.
“Encouragingly, our geological mapping is identifying the presence of the preferred lithium-bearing mineral, spodumene, in many of the outcropping pegmatites,” AZS managing director Tony Rovira says.
“We’re planning for the first drilling program to target the pegmatites and will commence as soon as we have received the necessary approvals.”
A high-grade lithium mineral resource estimate of 12.7Mt at 1.2% Li2O and 207ppm tantalum oxide has been reported at the Mt Ida Lithium Project in the eastern Goldfields region of WA above a cut-off grade of 0.55% Li2O.
The estimate includes a higher confidence indicated resource of 3.3Mt at 1.4% Li2O and 246ppm tantalum oxide, which representing 25% of the total mineral resource.
“The rapid definition and release of this maiden MRE in just over 12 months since the project acquisition paves the way for an exciting development,” the company says.
Block models have been delivered to engineering consultants, Minegeotech, to undertake scoping study level analysis of open pit and underground mining scenarios and an aggressive drilling program is underway to convert the remainder of the mineral resource into indicated status.
A gravity survey at the Cancet Project in Quebec has “exceeded expectations” and provided several high priority drill targets, which will be drilled as part of the next campaign once one in progress has wrapped up.
The ground gravity surveying has been ongoing since February 2022 under the supervision of Perth-based consultancy NewGen Geo.
“We are very excited to have identified over 1,800m of prospective strike which increases the Cancet exploration target footprint by over 250%,” managing director Chris Evans says.
“Timing could not have been better with the drill rig having just commenced at Cancet .
“The use of geophysics is unconventional for pegmatite exploration, but it is the natural strategy in areas where basement rocks are hidden by shallow cover and where systematic mapping and sampling fails.”
Most of the 15 first pass RC drill holes at the Sisters project in WA has intersected extensive thick stack sheeted pegmatites.
Notable results are 21m of pegmatite from a down-hole depth of 134m (MBRC001) and multiple intervals of 4m from 12m, 4m from 26m, 14m from 65m, 8m from 167m and 7m from 199m in hole MBRC014.
Adding further interest for MRR, ground reconnaissance and rock chip sampling over the Southern Zone has identified two extensive lithium and previously unknown bearing pegmatites within the Apex Basalt Greenstone.