‘Walk-up drill targets’: Accelerate acquires Kathleen Valley-like, Azure adjacent outcropping spod-rich pegmatite systems
Pilbara lithium hunter Accelerate Resources has added four ‘transformational’ Karratha tenements to its growing battery metals portfolio.
AX8 is snapping up key lithium real estate in the Pilbara, Australia’s hard rock capital, with today’s Karratha acquisition the second in a matter of months.
Karratha is right in the heart of the Pilbara’s 40km-long Karratha-Roeburne lithium belt, where recent discoveries include Azure Minerals’ (ASX:AZS) monstrous Andover project (exploration target 100-240Mt @ 1-1.5% Li2O).
Discoveries like Andover have driven up share prices astronomically in the past six months – between 100%-700% – at the time of writing.
Karratha comprises four projects – Prinsep and Mt Sholl (100% owned), Roebourne South and Mt Sholl East (75% owned).
Prinsep is particularly exciting, boasting two large, completely undrilled outcropping spodumene-rich pegmatite systems spanning across the entire 2km width of the tenement area and beyond, AX8 says.
Here, recent rock chip sampling by the AX8 team has returned grades up to 1.87% Li2O from the Southern Pegmatite system and 1.29% Li2O from the Northern Pegmatite system.
Importantly, these samples are shown to contain coarse spodumene, one of the most sought-after sources of lithium.
Based on satellite image interpretation, the Southern Pegmatite is less than 1km along strike from the Kobe lithium project, where GreenTech Metals (ASX:GRE) is picking up high-grade lithium in rock chips along 7.5km of strike.
Exploration activities are already under way. AX8 has a detailed drone survey planned to assist with detailed mapping of the Prinsep and Mt Sholl East project areas, followed by rock chip sampling.
This will culminate in maiden drilling of prioritised targets, pencilled in for early next year.
Strong market support for the deal has been demonstrated via an oversubscribed $3.6m capital raising, which includes participation from Mark Thompson and directors and management.
AX8 MD Yaxi Zhan says the company is delighted to acquire the high-grade Karratha lithium projects in Azure’s highly regarded Andover discovery region.
“The acquisition strengthens Accelerate’s position in lithium along with our East Pilbara lithium project, while also building on our EV battery metals story,” Zhan says.
“We are pleased to see a range of new and sophisticated investors participate in this placement.
“Accelerate is also delighted to have the continued support of our current shareholders, directors and management.”
This article was developed in collaboration with Accelerate 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.