Bauxite Resources Ltd (ASX:BAU) has secured an exploration licence between Ravensthorpe and Esperance on ground that could be prosective for lithium, wedged between Pioneer Resources Ltd’s (ASX:PIO) recently pegged leases to the east and Metalicity Ltd’s (ASX:MCT) tenement to the west.
It is also 120 kilometres east of Galaxy Resources Ltd’s (ASX:GXY) Mt Cattlin Lithium Mine in Western Australia.
The company’s tenements have similarities to the nearby projects, with stream sediment sample taken in the south of the tenement by Geoscience Australia returning an elevated lithium value.
Publically available soil geochemistry sampling is limited within the tenement, but extensive soil geochemistry lithium anomalies exist along structural trends immediately adjacent to the tenement.
The company is currently assessing the project area and will soon outline an exploration program.
BAU had cash of $27.3 million as on 31 March 2016 and no debt, after selling its interest in the Bauxite Alumina Joint Ventures (BAJV) to Yankuang Resources Ltd for $7.15 million.
Last month, the company had proposed a capital return of $0.05 per share to shareholders, which will result in $10.7 million being returned to shareholders, leaving BAU with $16.6 million cash.
The company’s share price has increased about 25% since January 2016.
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