Swing low, sweet Chariot: The ASX’s newest resources stock starts drilling for lithium in Wyoming
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Special Report: Chariot Corporation has started drilling at its flagship Black Mountain lithium project in Wyoming, less than two weeks after the company joined the ASX following an oversubscribed $9 million IPO.
Chariot Corporation (ASX:CC9) joined the bourse on 27 October with a market capitalisation of $67.5 million and an IPO issue price of 45c per share. Wilsons Corporate Finance and Jett Capital Advisors were joint lead managers of the listing process.
The newly listed company piqued investor interest with its plans to undertake drilling at Black Mountain as well as its early-stage exploration opportunities at Copper Mountain and Resurgent.
Chariot has now received formal approval from the US Bureau of Land Management for Phase 1 drilling at Black Mountain, following a surface geochemistry survey which collected 22 rock chip samples and returned assays up to 6.68% Li2O, with an average assay result up to 2.16% Li2O.
An exploration target over 40 known outcropping pegmatites bodies exhibiting spodumene-rich rock has been declared over a 1km long by 50-150m wide zone.
Chariot managing director Shanathar Pathmanathan said the company offered ASX investors exposure to the “nascent and rapidly growing” US lithium market.
“With the funds raised from the IPO, we are pursuing the first discovery of a large hard rock lithium resource in Wyoming,” he said.
Pathmanathan is joined on the Chariot board by non-executive chairman Murray Bleach, executive director Frederick Forni and non-executive director Neil Stuart.
Chariot’s US subsidiary, Panther Lithium, plans to drill 2,000-3,000m targeting outcropping spodumene-bearing LCT pegmatite dykes within the 1km long by 50-150m wide zone following formal approval from the US Government.
The 23-hole drill program was designed and based upon highly encouraging assay results from 22 rock chip samples collected at Black Mountain.
Of the 22 rock chip samples, 14 assayed +300ppm Li (0.06% Li2O), 10 of which were +7,000 ppm Li (1.51% Li2O) with the highest value being 31,018 ppm Li (6.68% Li2O).
Chariot says its site geologist and manager will be actively monitoring operations and interactively working with drilling contractor Major Drilling America to manage and dynamically adjust the program, which will continue on a 24/7 operating basis; weather permitting.
The company is utilising historical tracks and roadways in the Black Mountain area which were developed by ranching teams that lease the land from the Bureau of Land Management for cattle grazing purposes.
Mobilisation of drilling and support equipment from Salt Lake City, Utah, started after 2 November with first equipment arriving at site on 6 November.
Drill rig walking, placement and setup was completed on 8 November, with drill collaring and coring activity scheduled to commence on 9 November.
Chariot believes the Black Mountain project may represent a generational hard rock lithium opportunity in the US.
“Black Mountain features an excellent combination of geological factors, a supportive regulatory regime and is located in a largely unpopulated part of Wyoming,” the company says.
The company expects first assay results in January 2024.
This article was developed in collaboration with Chariot Corporation, 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.