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Lithium Australia acquires majority ownership in Mexican lithium project

A new 2.5 kilometre long thick zone of mineralisation has been confirmed.
lithium carbonate
Potential to deliver a resource with low stripping ratios

Lithium Australia NL (ASX:LIT) has acquired a 54% controlling stake in the Electra lithium clay project in northwest Mexico.

Recent drilling at the project had yielded a new 2.5 kilometre long thick zone of mineralisation with commercial potential.

The project comprises the Tecolote, Tule, and Agua Fria concessions and is currently the subject of a farm-in and joint venture with Canada based Alix Resources Corp (CVE:AIX).

Lithium Australia has the right to earn an ultimate 65% holding in Electra under the JV terms.

Adrian Griffin, managing director, commented: “The move to majority ownership at Electra and the emergence of the western flank of Agua Fria as a significant discovery with near-term potential, reflects the depth and scope of the company’s unerring growth strategy to build a lithium business based on breakthrough processing technologies applicable to unconventional and once considered uneconomic feedstock sources, and to de-risk our strategy by evolving partnerships and project interests across the globe, as well as our flagship lithium interests across Western Australia.”

Initial drill program

Lithium Australia moved to the majority 54% ownership on completion of a recent drilling program.

This generated confirmation of a new 2.5 km long mineralised zone between 25-50 metres thick on the western flank of the Agua Fria concession.

This “West Flank” lithium target is the most significant commercial target as it outcrops and has the potential to deliver a mineral resource with low stripping ratios.

Future plans

Future efforts on the West Flank target will focus on identifying the stratigraphy and controls of higher grade lithium values close to surface, with zero to minimal strip ratio by open pit mining.

A large sample is currently being composited for further metallurgical studies.

In addition to significant lithium values, the clay horizons at Agua Fria are anomalous in potassium which may be recoverable as potassium sulphate, a major component of “NPK” fertilisers.

This potentially adds a valuable by-product credit to the project’s economics.

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