On Tuesday, Kidman Resources Limited (ASX: KDR) released its quarterly activity report for the three months ended 31 March 2019. During the quarter, Kidman continued to ramp up the development of the Mt Holland Lithium Project in key areas.
While progress on the definitive feasibility study and the Company’s financing process continued, additional progress was made with environmental approvals and exploration activities. The integrated definitive feasibility study for the Mt Holland Lithium Project was commenced in December 2018 and is scheduled to be completed in mid-2019. Following a period of review and finalisation by Kidman and SQM, a final investment decision is expected in the second half of the year.
The 2017-2019 soil sampling programme at Mt Holland has generated an extensive geochemical dataset that has enabled the evaluation of potential pegmatite targets throughout the Forrestania greenstone belt. The company has also created a prioritised and conservative list of targets that meet specific geochemical and structural criteria.
The company told that the public review period for the Environmental Review Document for the Mt Holland Lithium Project is completed, with a limited number of comments received and all issues well understood by Covalent Lithium. Moreover, Covalent Lithium has been granted Environmental Protection Authority consent for Minor or Preliminary Works (MPW) enabling it to progress the remaining approvals required for MPW to commence at the Mt Holland Lithium Project.
Future balance sheet capacity has reportedly been strengthened through the agreement of US$100 million loan facility with Kidman’s joint venture partner in the Mt Holland Lithium Project, Sociedad Quimica y Minera de Chile S.A. (SQM). This facility reportedly becomes available after a final investment decision and would be used to partially fund Kidman’s share of construction of the Mt Holland Lithium Project.
Mt Holland Exploration has defined several large geochemical targets comparable in scale to Earl Grey, which reportedly be the focus of exploration in future drilling campaigns. Approximately 14,300 soil samples have been collected and assayed from across the tenement package on which Kidman holds lithium rights. Soil sampling initially focused on the ground held under Kidman’s farm-in and joint venture agreement with Western Areas and produced a series of geochemical targets for follow up drilling.
Soil sampling from mid-2018 to early-2019 has focused on both Kidman’s own tenements and the Western Areas farm-in agreement tenements. The company told that this extensive sampling programme has established several impressive new geochemical anomalies which equal, or exceed, the size and tenor of even the Earl Grey pegmatite’s footprint.
Kidman has prioritised a selection of key targets for follow-up reconnaissance drilling in 2019. Further, several Programme of Work applications has been submitted by Kidman to the Department of Mines, Industry Regulation and Safety for review and approval during the quarter.
As at the end of March 2019 quarter, the cash balance of the group stood at $27.02 million compared to the opening balance of $30.86 million as at the beginning of the quarter.
KDR last traded at $1.375, up 1.476% on 16 April 2019.
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