Lithium Australia NL (ASX:LIT) has updated on its raw materials strategy for 2020 and beyond, following a request from the ASX to provide further information about its Medcalf Project near Lake Johnston, Western Australia.
The company earlier announced that it had identified strongly mineralised lithium-bearing pegmatite swarms within its Medcalf prospect with the dominant lithium mineral being spodumene.
On April 15 2019 LIT noted that the Medcalf prospect provided the following:
- A cluster of stacked pegmatite dikes with abundant spodumene, outcropping over a strike length of 450 metres and a width of 100 metres; and
- Subsequently, a soil geochemistry programme covering an area of 1,300 metres x 700 metres generated lithium-in-soil anomalies that suggest possible extensions under cover.
The announcement included an exploration target on the Medcalf prospect based upon the potential quantity of mineralisation present, in the range of 5 million tonnes to 8 million tonnes at 0.8% to 1.2% lithium oxide.
An Exploration Target is not a JORC compliant Mineral Resource – the potential quantity and grade are conceptual in nature, as exploration to date has been insufficient to determine a mineral resource and there is no certainty that further exploration work will result in the determination of a Mineral Resource.
Aiming to “participate in Western Australia’s energy security strategy”
Managing director Adrian Griffin said: “In addition to considering sourcing lithium minerals from third-party mine-waste streams, the Medcalf Project provides a potential internal source of spodumene feed for the company’s experimental LieNA® lithium extraction business.
“The Medcalf Project’s development timeline is a good example of how the company applies a methodical, disciplined and cost-effective approach to exploration so that any discovery occurs in a low-cost environment, whilst balancing all stakeholder’s interests.
“Our ultimate aim is to participate in Western Australia’s energy security strategy, from mineral processing to batteries, and recycling of energy metals.”
Soil geochemistry results also indicate the possibility of additional, potentially mineralised, pegmatites that do not outcrop.
Lithium Australia is planning to widen its geological and geochemical knowledge through further targeted programs of mapping and geochemistry.
Upon receiving the requisite approvals, the inaugural drilling program will be completed during the second quarter of 2020 and will comprise around 12 reverse circulation drill holes for 2,500 metres with the provision for additional holes.