Electra JV “obviously in the right place” after sampling
The head of the Lithium Australia (ASX:LIT) Alix Resources (CN:AIX) joint venture says it is “obviously in the right location” after latest round of drilling at its Electra lithium project in Mexico.
Joint venture partner LIT told the Australian market late last week that sampling at the Senora Project in Mexico came back with lithium values of up to 246 parts per million lithium.
It said that this confirmed a target sedimentary assemblage with the potential of having lithium-bearing, clay-rich horizons.
Alix president Mike England went one step further, saying the results confirmed the project bore striking similarities to the Bacanora/REM project right next door.
“These recent anomalous and enriched lithium values...bear similarities to Bacanora/REM’s early stage findings at Buenavista,” England said.
The Buenavista deposit is within the Sonora Porject, a joint venture between Bacanora and REM which was at the centre of a lithium hydroxide supply deal inked with auto giant Tesla late last year.
The LIT/AIX joint venture gathered 42 samples from claystones, sandstone and siltstones from its target sedimentary sequence – which bore an average lithium value of 167ppm.
The sampling program has effectively firmed up two target areas at the project, one measuring 1100m by 250-400m, and the other 400m by 150m.
Both parties will now get to work on another round of sampling at the project, followed by a series of shallow drill holes as part of a drilling campaign.
These drill holes are not guaranteed to hit lithium mineralisation.
England, however, said the first round of sampling had a huge validating effect.
“We are obviously in the right location and the mineralisation to date found on the property is very promising to our exploration team,” he said.
Back in May LIT confirmed that it had taken the first 25% interest as part of an overall program which could earn LIT a 65% stake in the project.
About LIT and Sileach
LIT will be hoping to apply its ‘Sileach’ processing process to the project – proving that the process is good for processing clays as well as hard rock sources.
The Sileach process is a way of processing lower-grade silicate deposits normally considered sub-economic.
The Sileach process involves grounding the test ore, digesting it in sulphuric acid, removing impurities and then extracting the lithium carbonate.
If LIT is able to prove up the technology, then it could open up a raft of resource which were previously considered too poor to mine.
S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.