Significant intersections included veins 2.33 metres thick assaying 1.44% lithium oxide.
Steve Kesler, CEO, commented: “The drilling results to date clearly demonstrates that the pegmatite veins extend to depth to at least 1250 metre above sea level.
“These results also intersected pegmatite veins in an area of previously unrecognised potential which merits further exploration.
“Interpretation of the results is underway with the intention of declaring an increased resource in June 2017.”
Drill result details
The initial surface deep drilling program was comprised of four diamond holes.
Drill hole P15-14 was targeted to intersect pegmatites in the mica schist down to about 1250 metres depth.
Unexpectedly, two significant intersections were encountered within 50-70 metres of surface of 2.33 metres assaying 1.44% lithium oxide and 1.01 metres assaying 1.56% lithium oxide.
This amphibolite area has extended strike and will merit further exploration.
Drill hole P15-19 was also targeted deeper into the mica schist to 1100 metres depth.
Again significant intersections of pegmatite in the initial amphibolite were obtained including a packet of 2.67 metres with 2.03 metres mineralised veins at 2.01% lithium oxide.
Wolfsberg Lithium Project
The 100% owned Wolfsberg project has a JORC resource estimate of 6.3 million tonnes at 1.17% lithium oxide.
Recent study results supported an economical mining operation at Wolfsberg with an estimated preliminary pre-tax net present value (NPV) of US$94.8 million.
The current JORC resource supports a mine life of 13 years with potential to increase mine life and production rate as additional resources are developed.
Furthermore, the project has proven to be able to produce 99.9% battery grade lithium carbonate from the project’s concentrate.
A preliminary evaluation of the project economics includes:
- Capex cost of US$178.8 million;
- 13 years life of mine (LoM);
- LoM revenue of US$972 million or US$74.8 annually
- LoM EBITDA of US$509 million or US$39.2 annually; and
- Pre-tax NPV of US$94.8 million.
Completion of the pre-feasibility study is anticipated by the end of the September quarter 2017.
Recent off-take signed
The company recently signed a binding term sheet with its first off-take partner, Shandong RuiFu Lithium Co., Ltd, a leading Chinese lithium producer.
This is a major milestone on the development road map for the advanced flagship Wolfsberg Lithium Project.
The plan to supply up to 50,000 tonnes per annum of 6% lithium spodumene concentrates from Wolfsberg under the proposed off-take agreement.
Shandong will commence testing samples of Wolfsberg ore at their concentrate plant and a formal off-take agreement will be entered into within 90 days of signing the terms sheet.