• Shareholders approve PSC sale of Arcadia interest
  • ESS finds “abundant” spodumene from near surface in WA
  • Eastern Resources signs MOU to acquire and develop lepidolite projects

All your ASX lithium news for Friday, February 25.

 

All eyes are on Ukraine right now, and almost all commodities are taking a hit, except for gold which is playing the safe haven card, and oil.

Not surprising really since Russia is the world’s third-largest oil producer and second-largest oil exporter.

As the price of oil rose, lithium stocks enjoyed a healthy rebound, and while we are nowhere near the cost parity needed to boost EV uptake, the cost of fuel is clearly weighing on consumers.

Yesterday only 6 lithium stocks on our list finished in the green; today it’s 55 out of 88.

 

Here’s how ASX lithium stocks are tracking today:

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Who’s got news out today?

Prospect Resources (ASX:PSC)

Prospect shareholders have approved the sale of the company’s 87% interest in the Arcadia project in Zimbabwe.

Huayou has notified the company that it has obtained filing notice from the National Development and Reform Commission (NDRC) and the foreign exchange registration supervised by the State Administration of Foreign Exchange (SAFE) for the transaction.

All Chinese regulatory approvals required under conditions precedent to the Transaction have been received and those conditions are now satisfied.

Subject to all other conditions precedent being satisfied or waived, Prospect anticipates the transaction completing in late Q1 or early Q2 2022.

 

Essential Metals (ASX:ESS)

The company has intersected “abundant” spodumene from near surface in diamond drilling at the Cade and Davy deposits at its Pioneer Dome project in WA.

MD Tim Spencer says this supports the potential for mining at Dome North to commence at surface, with an upgrade for the current 11.2Mt at 1.21% lithium mineral resource likely.

“We are confident that the recently completed diamond drilling will, subject to satisfactory assay and metallurgical test work results, demonstrate that both the Cade and Davy deposits can be mined to produce recoverable spodumene from surface,” he said.

“We also expect to upgrade the drilled zones from Inferred to Indicated status within the Mineral Resource, supporting our development pathway.”

The recently completed air-core program didn’t locate any spodumene-bearing pegmatites, but the company intersected several pegmatites in the southern and central areas of the project.

 

 

Eastern Resources (ASX:EFE)

Eastern Resources has signed an MOU with Yongxing Special Materials Technology Co., Ltd. to acquire and develop lithium lepidolite projects in Australia.

Lepidolite is a lithium bearing mineral, and Yongxing is one of the major lithium carbonate producers in China who use lepidolite concentrates as feed to produce battery grade lithium carbonate.

The company says that partnering with Yongxing on lepidolite and Yahua on spodumene will drive a focussed exploration process and foster different commercialisation routes, should the ventures identify commercially viable projects.

Yongxing’s existing operations have 10,000tpa refinery for lithium carbonate, and it is undertaking an expansion for a further 20,000tpa of lithium carbonate by the first half of 2022.

As part of the JV terms, EFE will contribute A$100,000 for a 60% interest in and YONGXING or its subsidiary will contribute A$900,000 for a 40% interest.

 

Xantippe Resources (ASX:XTC)

The company secured an option agreement to acquire a prime lithium brine tenement – Luz Maria – in Argentina in close proximity to Lake Resources’ (ASX:LKE) Kachi project which has a resource estimate at 1M tonnes at 290 mg/L Lithium (Indicated) and 3.4M tonnes at 210mg/L lithium (Inferred).

It’s part of XTC’s rights to purchase the shares in Carolina Lithium Pty Ltd, which hosts four tenements are prospective for lithium brine deposits, known as the Carachi Pampa lithium project.

The Luz Maria tenement has a total area of ~3,400 hectares, and previous drilling has confirmed lithium rich brine at depth – and it has an approved environmental impact assessment study, and its titles and mining leases are up to date.

“This tenement has been widely considered as the ‘jewel in the crown’ of Catamarca and through our partners in Argentina, the Arecco Group, we were able to secure the option against many other suitors,” MD Richard Henning said.