LYN has won its ballot for ground in the Pilbara. Pic: Getty Images
Mining
Special report: Lycaon has won the ballot for an exploration licence in WA’s Pilbara region, adjacent to projects held by Kali Metals and mega lithium producer SQM.
WA’s Pilbara region, ~1,280km north of Perth, has been a hotbed of exploration activity over the years from gold to iron ore and more recently, lithium.
Its abundance of these minerals has drawn the attention of major miners, looking to invest in small cap explorers and seek out attractive M&A opportunities, the most recent example being the takeover of Azure Minerals by joint bidders SQM and Gina Rinehart’s Hancock Prospecting in a $1.7bn deal.
AZS carried out a total of 113,419m of lithium-focused drilling at its Andover project before the company was sold via a scheme of arrangement for $3.70 a share.
But SQM, one of the world’s largest lithium producers, is also earning an initial 30% and up to 70% interest in Kali Metals’ (ASX:KM1) DOM’s Hill and Marble Bar project with Kalamazoo Resources (ASX:KZR).
Now Lycaon Resources (ASX:LYN) has won a ballot for exploration licence E45/6809 against four other applicants, immediately adjacent to KM1’s Marble Bar and DOM’s Hill assets, covering the historical copper-gold prospect Myrnas Hill.
Previous rock chip samples on the prospect have returned up to 42% copper, 6.49 g/t gold and 47.7 g/t silver, demonstrating a polymetallic nature of mineralisation may be present.
It gives Lycaon the potential to make discoveries in two of the critical markets linked to the energy transition – lithium and copper.
“We are extremely pleased with securing this highly prospective tenement,” LYN technical director Thomas Langley says.
“This area of the Pilbara truly is the land of the lithium giants, and the tenement is located on the Archean greenstone, host to the major lithium mines in the region, with the potential to explore for lithium, copper and gold in this new project area providing an exciting opportunity.
“A detailed geological review of past exploration work on the project area and surrounds will begin alongside site reconnaissance in the coming months with exploration work programs to follow as soon as possible.”
Langley says the company is also looking forward to the upcoming heritage surveys at its Stansmore project in the West Arunta, one of the last frontiers for major critical mineral and copper-gold IOCG discoveries in Australia.
“Other explorers in the region such as Encounter Resources are having great success discovering niobium rich mineralisation in their first ever drill programs, and it signifies the extremely prospective and underexplored nature of the West Arunta,” he says.
This article was developed in collaboration with Lycaon Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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