Image Source: © 3dalia|Megapixl.com
- Australasian Metals is engaged in the exploration and development of two lithium projects in the Northern Territory.
- The company is undertaking its lithium exploration programs in partnership with CSIRO.
- A8G has also secured a government grant for drilling programs across the Mt Peake Lithium Project.
The boom in the electric vehicle (EV) industry is attracting substantial investments in the exploration of battery metals. Lithium is one of the key components of EV batteries, and its demand, supply and pricing are closely attached to that of EVs.
Several analysts have already shared their views on lithium in the past, highlighting that this battery metal will become as important as crude oil.
Australia is endowed with one of the world’s largest reserves of lithium. Australian miners are exploring lithium prospects from head to toe to ease the supply chain constraints amid the high demand for EVs.
Apart from lithium, Australasian has significant exposure to gold exploration, and its operations are spread across premium mining jurisdictions of the country.
A8G recently announced the findings of its ongoing fieldwork across the Barrow Creek Project, confirming the presence of high-grade tantalum and tin mineralisation. The tantalum mineralisation was associated with lithium and caesium. These findings were made through geochemical assaying of the samples collected during a rock chip sampling program over the tenement.
Lithium project locations of A8G (Image source: Company update, 28 April 2022)
The highest reported grade of tantalum was 1018ppm in one of the samples from exploration licence EL28515. The sampling program returned elevated values of lithium concentration up to 0.26% Li2O on EL29724.
Samples collected during rock chip sampling (Image source: Company update, 1 July 2022)
The rock chip sampling program over the Mt Peake Project has returned high-grade lithium mineralisation up to 1.15% Li2O and 226ppm Ta.
The company has planned an extensive exploration program on both projects in the coming quarters to delineate high-grade targets.
Australasian Metals and the Commonwealth Scientific and Industrial Research Organisation (CSIRO) are working together to explore lithium prospects on the Mt Peake and Barrow Creek projects under the latter’s Kick-Start Program. The program aided the company to gain access to sophisticated optical, thermal and remote sensing data analysis and interpretation workflows.
CSIRO, deploying the hyperspectral and radiometric imagery using the PRISMA satellite system, will evaluate the geophysical data available in public domain with respect to multispectral and hyperspectral Earth Observation Information.
The collaboration would provide a cost-effective mapping system of pegmatites over the exploration area and would also help in identifying shallow basement cover along with the classification of regolith landform.
Recently, A8G secured a grant of AU$160,000 under the Resource the Territory initiative of the Northern Territory Government.
The company plans to use the funding towards a diamond drilling program over the Mt Peake Lithium Project. The award of the grant is a kind of endorsement to the porspectivity of the project as these grants are highly competitive and are awarded only after rigorous scrutiny of the application and potential of the project.
Lithium has become as important as oil. Investors are showing hyper interest in lithium projects around the globe.
Australasian Metals, through its exposure to lithium projects in the NT, expects to contribute significantly to the supply chain. There has been a huge demand-supply gap. To make EVs and lithium batteries more affordable, new projects could contribute and ease the growing demand.
A8G shares traded at AU$0.280 on 12 August 2022.
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