Reed Resources (ASX: RDR) has yielded positive results from the third phase of reverse circulation drilling at the Mount Marion Lithium Project.
The results show that the spodumene bearing pegmatite in the No.2 Deposit extends a further 120 metres to the south, and a new Deposit No.1W extends to the north-west of the No.1 Deposit for a strike length of at least 160 metres.
The infill and extension drilling results at the Deposits 1, 2 and 2W will now be used by Reed Resources to estimate additional resources, which the company plans to complete by September 2011.
These additional resources will further boost the project, which remains on schedule for commissioning in the December quarter 2011.
The initial capacity will be 200,000tpa of 6% Li2O chemical grade spodumene concentrate, 60,000tpa of mica and 30tpa tantalite concentrate.
The total contained lithium oxide resources at currently stands at 146,000 tonnes (Li2O).
Exploration is ongoing at the project, with a new phase of infill and extension drilling for Deposit 4 and Area 6 being planned.
Reed Resources partners with Mineral Resources (ASX: MIN) at Mount Marion.