Under the MOU, the companies will undertake due diligence and negotiate key terms to explore lithium hosted pegmatites on tenements held by both Poseidon and LIT at Lake Johnston and Ravensthorpe.
The partnership enhances the progress towards establishing Lake Johnston as a central lithium processing hub.
Importantly, the region’s exploration upside shows potential for a low capital cost entry into the global lithium market.
Adrian Griffin, managing director, commented:
“LIT has great confidence in the resource potential of the Lake Johnston area, and indeed Western Australia’s broader Dundas region.
“Together with Poseidon Nickel, we hope to take a very cost effective first step into the lithium ion battery manufacturing chain.”
Lake Johnston concentrator
The parties will also assess the viability of utilising Poseidon’s 1.5 million tonnes per annum Lake Johnston concentrator (which is currently on care and maintenance).
The concentrator can potentially be used to process lithium ores and produce a saleable lithium concentrate.
The Lake Johnston facility includes 3 ball mills, 2 flotation circuits, multiple thickeners, filters and a large concentrate storage facility.
Additional infrastructure at Lake Johnston includes existing tailings disposal cells, a bore field and water treatment plant, large mine workshop and maintenance facilities and administration buildings.
The site power is supplied by a local power station.
LIT’s and Poseidon’s combined tenement package at Lake Johnston and Ravensthorpe covers an area of circa 1,000 square kilometres.
The combining of assets significantly improves each company’s prospectivity for discovering lithium mineralisation.
The move is the latest under LIT’s strategy to underpin lithium chemical production from all lithium silicates, including lithium micas and spodumene.
The company has developed the SiLeach® process to capitalise on lithium sources not previously exploited for the production of lithium chemicals.
In parallel with its processing technology, LIT’s exploration program is designed to develop long-term lithium supply assurance, regardless of the variability of future third party supply.