Lithium Australia identifies lithium mineralisation similar to Mt Cattlin
Lithium Australia (ASX: LIT) has completed the first stage of drilling at its Horseshoe Pegmatite. Over a two week period, the company drilled 26 reverse circulation holes ranging in depth from 19 metres to 72 metres across a 959 metre length in an area with similar geological characteristics to the Mt Cattlin deposit, which is in production.
Samples from the drilling have been sent for testing with management expecting to receive the results in early August. The drilling campaign was designed to define the structural and geological setting of the Horseshoe Pegmatite and to test for economic lithium mineralisation.
It would appear from initial observations that these goals have been achieved with drilling demonstrating that the Horseshoe Pegmatite is a relatively flat, sheet-like body with a true thickness ranging from 15 metres to 25 metres.
The continuation of the pegmatite to the west of the surface is open, and lithium minerals spodumene and lepidolite have been identified in the drill chips.
A subsequent drilling campaign was planned in order to test the Deep Purple pegmatite, however it has been postponed due to adverse weather conditions which have restricted access to the site.
Overall though, this update is positive and that is reflected in the group’s share price movement. LIT’s shares traded as high as 13 cents, representing a gain of more than 8% on the day.
Of course it should be noted that share trading patterns should not be used as the basis for an investment as they may or may not be replicated. Those considering this stock should seek independent financial advice.
Managing Director, Adrian Griffin, highlighted some of the key takeaways in saying, “The large footprint, substantial thickness and shallow dip of the Horseshoe Pegmatite provides an excellent target, and the identification of lithium minerals within the pegmatite clearly demonstrates the very strong similarity to the pegmatite being mined by Galaxy Resources (ASX: GXY) at the nearby Mt Cattlin project.
Indeed, the Ravensthorpe area in general is showing plenty of promise, suggesting the Deep Purple results will be closely watched. While the company’s shares have retraced slightly after doubling in the first week of July, this could be seen as a buying opportunity ahead of the announcement of drilling results.
When the experts at Next Investors have a stock pick, it may pay to listen.
The Next Investors have been investing in ASX small cap stocks for years, with their best small cap picks yielding returns of 1,200%, 1,120%, 900% and 678%.
They have just revealed their hand-picked, FY2021 stock portfolio of high conviction long-term investments.
Click the link below to see what they are currently investing in.
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.