• China cracks down on illegal mining in major lithium hub, cutting 10% of global supply
  • Westar says there’s 1.4km of LCT pegmatite strike potential at the Olga Rocks project 
  • Loyal Lithium plans to fast-track a drilling campaign at the Trieste project

All your ASX lithium news for Tuesday, February 28.

 

Word on the street is that China has shut down a major lithium hub in Yichun, Jiangxi province for a government probe into illegal mining and environmental infringements.

The region is responsible for around 10% of the world’s lithium supply from lepidolite, which could have some wide-ranging implications as miners around the world race to feed demand for the battery metal.

 

 

Yichun’s monthly lithium carbonate output is about 10,000-12,000 tonnes, and Yicai Global reports the suspension could last about a month in a best-case scenario.

It’s unclear what impact the shutdown will have on future mining in Jiangxi.

“This supervision may mean that the inspection and control over lepidolite mining in China will be more stringent in the future,” Rystad Energy analyst Susan Zou told Bloomberg.

The probe will largely target mining without permits or with expired licenses, but it’s not just companies getting in on the action — apparently villagers in the area have previously been caught mining lithium ore in the mountains without permission because of surging prices.

 

Here’s how ASX lithium stocks were tracking today:

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A total of 49 stocks were in the green, 50 were flat and 38 were red.

 

Who has news out today? 

WESTAR (ASX:WSR)

The company says surface mapping and compilation of historical drilling data indicates up to 1.4km of LCT pegmatite strike potential with potentially three separate pegmatite corridors at the Olga Rocks project in WA.

The results highlight continuity of the mapped surface beneath the soil cover, extending the strike from 350m of outcrop to up to 1.4km of strike length with two adjacent corridors all of which are open to the north under cover. 

With thicknesses in both the drill holes and surface outcrops of up to 35 to 38m, Westar plans to accelerate exploration. 

“Westar is leveraging the historical gold drilling across the project to assist in defining the extent and thickness of the identified pegmatites, replicating the process Kidman Resources used in the early identification of the potential of the Mt Holland Project (now the Covalent Lithium Earl Grey mineral resource),” MD Karl Jupp said.

Drill targeting is underway for a maiden drill program which will be the first to test lithium potential within the tenement. 

 

LOYAL LITHIUM (ASX:LLI)

Loyal has wrapped up a high-resolution aeromagnetic survey across prospective greenstone targets at the Trieste project, which it says will support a pre-emptive drilling application at the project, in the event of a successful inaugural field program.

Typically, an aeromag survey and a drilling application follow a successful infield program, however MD Adam Ritchie says the company is “planning for success.” 

“Conducting these works now, enables us to fast track a drilling campaign in the event of a successful inaugural field program,” he said.

“The opportunity at Trieste is exciting and we will continue to look for opportunities to fast track our exploration activates at Trieste.” 

 

AVZ MINERALS (ASZ:AVZ)

Results from mineral resource drilling at the Manono lithium and tin project in the Democratic Republic of Congo (DRC) have returned 113.33m at 1.79% Li2O and 860ppm Sn – which includes a higher-grade zone of 36.0m at 2.06% Li2O and 887ppm Sn. 

Fifty-four samples have returned values greater than 2% including 5 individual samples grading greater than 3% Li2O with the highest value being from 56 to 58 metres downhole grading 4.39% Li2O (hole MO22DD009).

“The objectives of this current round of drilling are to shore up future mineable reserves based on a likely upgrade of resource tonnes generated from this current round of drilling,” MD Nigel Ferguson said.

“It should be noted that this drilling program has filled in existing gaps in the current geological model caused by previous access issues in wet areas and that the drilling will extend our knowledge of the Roche Dure orebody for a further 600m of strike length up to section line 8,400m north.

Roche Dure remains open both along strike and down dip, with two diamond drill holes still to be finished in this drilling program.

 

EUROPEAN LITHIUM (ASX:EUR)

The company has provided an update on its Ukraine projects acquisition. 

Because of Russia’s invasion of Ukraine, EUR and Millstone have agreed to vary the acquisition terms to include martial law having been cancelled or terminated in accordance with Ukraine law; and European Lithium Ukraine commencing drilling on the Dobra Project. 

“EUR identified the huge potential in the Dobra and Shevchenkivske Projects before our plans were impacted by the current conflict,” chairman Tony Sage said.

“Once the conflict is over and Ukraine look to the reconstruction process, we believe the world will show its support with billions of dollars of investment and much needed economic activity. 

“EUR is in a unique position to recommence the exploration and development plans for these important projects.” 

The end date to complete the acquisition has been extended to 2 November 2025. 

 

WSR, LLI, AVZ and EUR share prices today:

 

 

 

At Stockhead we tell it like it is. While European Lithium is a Stockhead advertiser, it did not sponsor this article.

 

 

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