• European OEMs urged to work with suppliers to address supply chain issues
  • Tyranna flags assays of 7.49% Li2O at its new African acquisition
  • Aruma’s rock chip sampling at Mt Deans returns up to 1.96% lithium

 All your ASX lithium news for Monday, May 30.

 

At last week’s EIT RawMaterials summit in Berlin, original equipment manufacturers (OEMs) were urged to engage more with their metal supply chains to help assess vulnerabilities and sustain healthy regional manufacturing hubs in future years.

Philippe Varin, head of French Governmental Mission on Critical Materials – whose governmental task force is currently dealing with the impact of the Ukrainian war on metals supplies to industry – called on OEMs to work with their suppliers to conduct systematic reviews of their supply chains.

Many suppliers of OEMs are being squeezed by high raw material costs and their customers are reluctant to revise traditional contracts to reflect the structurally higher cost curve.

Talga’s (ASX:TLG) chief executive for Europe and chief operating officer Martin Philips urged OEMs to “become miners” otherwise Europe may struggle to reduce its reliance on imports for battery materials.

His comments echoed those of Elon Musk earlier this year who said Tesla may need to get into lithium mining and refining due to the surge in prices.

 

Here’s how ASX lithium stocks were tracking today:

Lithium stocks missing from our list? Shoot a friendly mail to [email protected]

 

A total of 69 stocks were in the green today, 32 in the red and 27 failing to move the needle.

 

Who’s got news out today?

TYRANNA RESOURCES (ASX:TYX)

The company’s proposed acquisition – the Nambie project in Angola – has returned assays of 7.49% Li2O from high purity spodumene.

The results were from the historical rock-chip sampling completed in 2019 and 2021 of pegmatites within the Giraul Pegmatite Field.

“These initial results reinforce our belief that this project warrants further detailed and systematic exploration to uncover its true potential and look forward to the exciting road ahead for the company and its shareholders,” director Joe Graziano said.

 

ARUMA RESOURCES (ASX:AAJ)

The explorer returned high-grade lithium up to 1.96% and very high-grade rubidium of up to 1.42% from a surface rock chip sampling program at the ‘Mt Deans’ project in WA.

Fun fact: this project is just 1.44sqkm in size. A proverbial postage stamp.

These new sampling results indicate a strong positive relationship with recent drilling at Mt Deans, which has an interpreted pegmatite (lithium-hosting rock) +1,500m long open at both ends.

Plans are now underway plans to complete the remaining 1,800m across 12 holes in the maiden drilling program at Mt Deans “as a priority”.

“The first phase of drilling delivered highly encouraging lithium and rubidium grades in numerous intersections, some with significant widths,” managing director Peter Schwann says.

“The follow-up rock chip sampling program has returned excellent results and will help refine our drill targeting for the remaining holes to be completed in our maiden drilling program at Mt Deans.

“Our initial drilling represented just the start of exploration at the project, and based on the results, we moved quickly to undertake the surface sampling to investigate strike variations in grades.”

 

MINREX RESOURCES (ASX:MRR)

MinRex’s geological mapping program at its Tambourah North lithium project in WA has identified new, larger pegmatites hosting visible spodumene and lepidolite.

“These rich spodumene-lepidolite stacked sheeted pegmatites have extensive width, strike and zonation which have all the hallmarks of a potential Pilgangoora Lithium Deposit,” MD George Karageorge said.

“Now that the WA Department of Mines, Industry, Resources and Safety have approved MinRex’s application to drill, the company is currently working on the first maiden RC drillhole program to test the extensive stacked pegmatites.”

 

ANSON RESOURCES (ASX:ASN)

Anson says test work during the current exploration program at its Long Canyon Unit 2 at the Paradox Lithium Project confirms continued high-pressure and flow rates, which would have a positive impact on brine extraction economics.

The company says the Paradox extraction location at the intersection of Robert’s Rupture and Cane Creek Anticline provides three key unique features; high pressure, vertical porosity; and shallow depth.

This is expected to result in artesian flow of brine to surface without the need for pumping – delivering lower production costs and positive ESG attributes.

“Unlike oil reservoirs which are located and concentrated by geological traps, e.g., faults or anticlines, the lithium-rich brine within the Paradox lithium project is continuous across the layered formations of the Clastic Zones and the Mississippian Units,” executive chairman and CEO Bruce Richardson said.

“The uniform high pressure in the rock units across the 100 square kilometre area of the project is expected to result in continuous flow for an extensive period from the LCW1 and LCW2 extraction pads which are located at the unique intersection of the two major geological structures, Roberts Rupture and the Cane Creek Anticline.

“Pressure is always looking for a pathway to release and brine extraction wells will offer that opportunity.”

 TYX, AAJ, MRR, and ASN share price charts

 

 

CYGNUS GOLD (ASX:CY5)

Recent exploration activities at the company’s 800km2 Bencubbin Project in WA have returned a significant  potential lithium anomaly.

Peak values are up to 152 ppm Li2O, 26 ppm Ta2O5 and 152 ppm Nb2O5.

Immediate follow up auger work is planned to evaluate the full extent of the target ahead of drill testing.

“Given the large value currently being generated across the lithium exploration industry, Cygnus is excited to find such encouraging indications in its early exploration efforts at Bencubbin,” executive director Michael Naylor said.

Notably, the Southwest region host to probably the most well-known hard rock lithium mine in the world; Greenbushes.

 

LIONTOWN RESOURCES (ASX:LTR)

Liontown and Tesla have extended the termination date for the binding offtake term sheet for the supply of up 150,000 dry metric tonnes per annum of spodumene concentrate produced at Kathleen Valley expected to commence in 2024.

The new termination date is 6 June 2022, which will give the companies time to complete negotiations for the definitive full form binding offtake agreement.

 

AUSTRALASIAN METALS (ASX:A8G)

The company has been awarded $160,000 of funding from the Northern Territory Government towards diamond drilling at its Mt Peake Lithium Project in the Northern Arunta Pegmatite Province.

A8G says the funding allows it to complete a more extensive drilling program – which is expected to kick off in Q3 2022.

 CY5, LTR, and A8G share price charts