Red Mountain ready to commence drilling at Red Valley lithium project
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Red Mountain Mining (ASX:RMX) advised the market on Monday morning that it was mobilising a drilling rig with a view to commencement of exploration at its Red Valley lithium brines project in the next 7 to 10 days.
The Red Valley project is located in Western Utah, USA. RMX is conducting a three x 1000 foot well program to test for commercial levels of lithium enriched brine.
This news comes only a week after the group advised that it was entering into a binding exclusivity and earn-in agreement with CoCu Metals which controls 100% of the Mokabe-Kasiri cobalt-copper project in the Katanga province of the Democratic Republic of Congo, Africa.
The project comprises 350 square kilometres of the prolific Central African Copperbelt, and lies only 50 kilometres to the north of one of the world’s largest copper-cobalt mines, Tenke Fungurume, which is currently owned by a consortium including Toronto-based Lundin Mining and Phoenix-based Freeport McMoRan.
The Red Valley project already provided RMX with strong exposure to the new energy metal thematic, but this has been strengthened further by its interest in the Mokabe cobalt-copper project.
As drilling recommences at Red Valley there is the potential for multiple share price catalysts to emerge given laboratory results from grab samples at Mokabe have registered average cobalt grades of between 1.6% and 2.9%, as well as copper grading between 1.3% and 9.2%.
Of course it should be noted that this is an early stage play with no guarantee of share price catalysts, so investors should take a cautious approach to their investment decision and take all publicly available information into account.