Red Mountain’s early exploration at Mustang have returned equally early successes. Pic via Getty Images.
Red Mountain’s exploration is off at a gallop with early lithium samples
Mining
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Exploration at Red Mountain’s Mustang project in Nevada is off to a great start with initial surface sampling returning lithium assays of up to 721 parts per million.
The results from the 18 samples collected along uplifted claystone ridges within the hydrologically closed Monte Cristo Valley are especially encouraging given the very limited historical exploration work in the area.
Successful exploration is also likely to be very lucrative for Red Mountain Mining (ASX:RMX) given that the stratigraphy and geomorphology of the Monte Cristo Valley is similar to that of the Clayton Valley and Big Smoky Valley, which host the largest defined lithium mineral resource in the US.
The company noted that eight of the 18 samples returned assays over 500ppm lithium, which are not only highly anomalous given the small sample size but also in line with the typical resource cutoff grade of about 500ppm lithium for claystone lithium in the Clayton Valley and Big Smoky Valley.
Mustang project and future activity
Red Mountain acquired the Mustang and Lithium projects – both considered to be prospective for claystone-hosted lithium in the prolific Big Smoky and Monte Cristo Basins of Esmeralda County – from Chariot Corporation in early December last year.
The target basins also host the only operating lithium mine in the USA – the Silver Peak Lithium Mine owned by Albemarle Corporation (NYSE:ALB).
Its belief in the prospectivity of the two projects in Nevada was highlighted earlier this month when it lodged its application for 102 additional claims that are contiguous with the Mustang project, taking the total area covered up to 1,069.7 hectares in 140 lode claims.
The company plans to carry out additional surface sampling and geological mapping around areas of interest at Mustang to inform the planned 10-hole reverse circulation drill program that will provide information on lithium mineralisation to guide further drilling.
Surface sampling is also expected to start imminently at the Lithic project.
This article was developed in collaboration with Red Mountain Mining (ASX:RMX), 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.
