Peregrine soil sampling identifies ‘a legitimate lithium target’ next door to 414Mt Pilgangoora mine
Reconnaissance soil sampling has identified lithium caesium anomalism worthy of follow-up at Peregrine’s Pilgangoora North project in WA’s resource-rich Pilbara region.
Pilgangoora North, just 5km along strike from the massive 414Mt Pilgangoora lithium mine, is in the right rocks for a big mineral discovery. However, historical exploration and drilling has been limited.
Peregrine Gold’s (ASX:PGD) soil sampling campaign has returned up to 291 parts per million (ppm) lithium and 153ppm caesium. This is encouraging, as previous stream sediment and rock sampling had proven to be ineffective in localising areas hosting lithium-caesium-tantalum pegmatites.
“Due to the extensive presence of pegmatitic rocks throughout the tenement, stream sediment and rock sampling has proven not to be an effective tool in localising areas hosting LCT pegmatites,” technical director George Merhi said.
“The recently completed reconnaissance soil sampling programme at our Pilgangoora North project has been very effective and has finally provided a legitimate lithium target worthy of additional exploration.
“Subject to additional surface sampling in September, we are confident that we will be able to define a coherent soil anomaly for RC drilling.”
While exploration at Pilgangoora North is very much in its infancy, its proximity to Pilbara Minerals’ (ASX:PLS) Pilgangoora mine provides a sense of the potential scale that might be present in the event of a successful discovery.
After all, Pilgangoora had produced 620,100t of spodumene concentrate in the 2023 financial year to deliver revenue of $4.1bn and after-tax profit of $2.4bn for PLS.
It also has a massive reserve of 214Mt at 1.2% Li2O that is enough for a mine life of about 34 years.
Peregrine plans to carry out infill soil sampling in early September to define drill targets.
It will also carry out heritage surveys before carrying out drill testing of pegmatite targets.
This article was developed in collaboration with Peregrine Gold, 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.