Eye on Lithium: An exploration and acquisition bonanza for ASX juniors as lithium sentiment flies high

• EV Resources will acquire remaining 20% of the Shaw River lithium project
• Midas Minerals defines 8km of pegmatites at Newington lithium-gold project
• Kula Gold identifies six lithium targets at Brunswick project

All your ASX lithium news, Wednesday September 7. 

EV Resources (ASX:EVR), previously Jadar Resources, will acquire the remaining 20% of the early stage Shaw River lithium project, which “has a strong history of successful mining of alluvial tin and tantalus as part of the Shaw River Tin Field and demonstrated potential for lithium as well as rare earth elements (REEs)”.

The project is within an 80km radius of three major lithium developments including Mineral Resources’ (ASX:MIN) Wodgina Lithium Mine, Pilbara Minerals’ (ASX:PLS) Pilgangoora Mine and Global Lithium’s (ASX:GL1) Marble Bar Lithium Project.

Early stage field reconnaissance work in the vicinity of historic mines and alluvial workings is planned.

EVR is spreading itself very thin for a $24m-capped junior explorer, with active projects in Arizona (copper), Peru (copper), Morocco (tin-tungsten), Austria (lithium), North Queensland (tin, tungsten silver), and now WA (lithium).

Here’s how ASX stocks are tracking today:

30 ASX stocks finished in the green today, 58 fell flat and 43 ended in the red zone.

Who else has news out?

MIDAS MINERALS (ASX:MM1)

Midas was punished today despite has defining 8km of pegmatites (rock that could host lithium) at its Newington lithium-gold project during a recently completed 63-hole RC drilling campaign.

The 2,980m program defined pegmatites at the Kawana East prospect, which demonstrate ‘excellent strike persistence’ and widths ranging from 10m to 30m.

Lithium micas were visually confirmed in several holes, however analysis is required to determine if other lithium silicates, such as spodumene or petalite, are present.

Midas has submitted ~800 samples for lithium analysis and ~80 composite samples for gold and nickel analysis.

Assay results are expected in Q4.

KULA GOLD (ASX:KGD)

Recent studies have identified six pegmatite target zones at the Brunswick Project near Donnybrook in WA for lithium mineralisation, around 45km from the well-known Green Bushes lithium mine.

KGD says five of the mapped pegmatites correlate to the 16km long, N/S striking, U2 /Th radiometric anomaly calculated from the publicly available radiometric data sets.

Field mapping and surface geochemistry will be the next stage of exploration commencing shortly.

LAKE RESOURCES (ASX:LKE)

David Dickson, an industry leader with more than 30 years’ experience in engineering, construction, and EPC cost management has been appointed to the role of CEO and managing director at Lake Resources.

Dickson has a proven track record in delivering multibillion dollar resource projects after working for seven years as CEO of global engineering and construction firm, McDermott International.

He is currently the senior advisor to Quantum Energy Partners – the leading global provider of private capital to the responsibly sourced energy and energy transition and decarbonisation sectors and is an executive strategic advisor to The Chatterjee Group.

“This is a major achievement to have secured a CEO like David as Lake goes from project development to construction to become a major lithium producer,” LKE chairman Stuart Crow says.

“David knows all the major oilfield services and EPCM contractors who are looking to expand into the renewable economy – at a time when major projects are struggling to source this capability and support.”

LKE is looking to reach capacity of 100,000tpa LCE as it looks to progress from project development to construction to become a major lithium producer.

LITHIUM AUSTRALIA (ASX:LIT)

An agreement has been made between LIT and South Korea battery company, LG Energy Solution, to process a minimum of 250t of LGES energy storage system lithium-ion batteries.

This equates to more than 5,000 energy storage systems and is in addition to current collection volumes, representing nearly 25% of Envirostream’s total collections during FY22.

Under the agreement, LGES will deliver the LIBs to Envirostream’s facilities in Melbourne, Australia, for processing.

Envirostream recycles more than 90% of a lithium-ion battery into its core components, which includes steel, copper, aluminium and most significantly the critical battery metals that are then amalgamated into a mixed metal dust (MMD).

The recovered MMD allows the active metals to be repurposed into new lithium-ion batteries anode and cathode powders.

Additional batteries will be delivered by LGES to Envirostream for processing during FY2023.

FORRESTANIA RESOURCES (ASX:FRS)

Lithium drilling across the Forrestania Project is being planned to test targets at bounty East and the Gem Mine, which show favourable pathfinder geochemistry and pegmatites have either been logged in historical drill holes or mapped at surface.

Both are high-priority lithium targets for the company and will be part of the first phase of planned drilling.

Forrestania is engaging with drilling contractors to confirm rig availability and timing for the upcoming RC program.

MINREX RESOURCES (ASX:MRR)

New rock chip sampling over the Central and Southern Zone has identified more extensive pegmatites hosting visible lithium mineralisation at the Tambourah North Project area within Western Australia’s East Pilbara region.

Three lithium rich zones have been identified within the project – zone 1 consists of spodumene rich pegmatites where up to 2.56% lithium ocide and 115ppm caesium, 40ppm tantalum has been uncovered.

Zones 2 and 3 consist of lepidolite and spodumene rich pegmatite with elevated tin, tantalum and rubidium results varying from 1,172 to 1,550 ppm.

A Program of Works has been approved from the WA Mines Department for drilling to kick off on final Heritage Survey ground clearance in the next quarter.

ST GEORGE MINING (ASX:SGQ)

Numerous outcropping pegmatite dykes have been identified occurring in swarms at the Mt Alexander Project in WA’s Goldfields region.

St George managing director John Prineas says the pegmatite dykes strike east- west within a regional corridor understood to host the major lithium discovery announced by Red Dirt Metals (ASX:RDT) at the Mt Ida Project, southeast of Mt Alexander.

“The results support a compelling case to accelerate exploration for lithium pegmatite mineralisation,” he explains

Prineas adds the company is also excited by the strong rubidium values in sample assays received to date, which is a strong indicator of pegmatites favourable for lithium mineralisation in weathered environments.

Values for rubidium were as high as 0.6% with anomalous rubidium seen in initial sampling across the 15km project area in a strongly weathered pegmatite, a key feature for indicating the potential of the pegmatite to be lithium bearing.

Around 45 rock chips were collected during preliminary mapping in selective areas along strike from RDT’s Mt Ida with values for lithium up to 157ppm, 44ppm caesium and 125ppm tantalum.