Alchemy Resources (ASX:ALY) doubles down on lithium strategy at Lake Rebecca - Kalkine Media

Highlights:

• Alchemy Resources (ASX:ALY) holds lithium and gold-based projects in Western Australia.
• The latest review work has highlighted the prospectivity of Lake Rebecca with seven lithium exploration targets identified.
• The company is excited with plans for the project, which has not witnessed lithium exploration previously.

Lithium, the lightest alkali metal, is one of the focal points in the recent time of green transition. The metal has been witnessing exponential demand on account of its usage in electric vehicle (EV) batteries.

As per the latest edition of the Australian government’s Resources and Energy quarterly report (December 2022), EV sales are anticipated to grow tenfold by 2030. This enormous growth forecast indicates a similar growth trend in the demand for lithium, as around 8.9 kilograms of lithium are used to manufacture an EV vehicle.

Booming EV market: a blessing for Australia’s lithium players

Australia, which accounts for the largest export of lithium in the world, is expected to witness a three-time growth in lithium export revenues in 2022/23. The strong rise in spodumene prices is expected to lift the total annual lithium export revenue to an estimated AU$16 billion in 2022–23 and AU$17 billion in 2023–24, as per the report.

Apart from rising lithium prices, the forecast growth is also expected to be driven by a strong upsurge in production capacity. The production profile is likely to follow an 18% growth rate, with production reaching 399,000 and 470,000 tonnes in 2022-23 and 2023-24, respectively.

Amid such positive sentiments, companies are making full-paced advancements towards their lithium project portfolio.

Alchemy Resources: developing lithium assets in Western Australia

Australia-based battery metals exploration & development company Alchemy Resources (ASX:ALY) is developing its Western Australia-based lithium projects on a fast pace.

Per Alchemy, its Karonie and Lake Rebecca projects have lithium targets of more 160km of semi-contiguous strike spread across more 1,700 square kilometres of highly strategic tenure.

To know more about developments at Karonie, read here

The company recently commenced explorational activities targeting lithium and gold prospects of its Western Australia-based fully-owned Lake Rebecca Project.

Litho-structural review outlines seven lithium exploration targets at Lake Rebecca

Alchemy has wrapped up the first-pass, project-wide regional reconnaissance at the project with the results indicating its highly prospective nature. The work has delivered seven target areas planned to be explored for lithium across the project.

The reconnaissance visit conducted by the company's geologists in late-November 2022 mapped multiple feldspar-rich granite dykes throughout the tenement package. 

(Image source: Company update, 6 December 2022)

What's in store for Lake Rebecca?

Alchemy is eyeing access into the areas around the northern tenements, hence progressing initiatives to access agreements with the Native Title Groups.

The other plans for the project are additional reconnaissance mapping and sampling for lithium and gold targets. This exploration will target the potential of numerous regional granite bodies and mapped pegmatites and other felsic dykes for Lithium-Caesium-Tantalum (“LCT”) mineralisation.

The company believes this development will help delineate prospective areas for follow-up soil sampling and aircore drilling.

Previous work by other companies around the project area focused on the exploration of gold and base metals. The Lake Rebecca project has not been subject to lithium exploration in the past. However, the structural evaluation establishing the prospectivity of Lake Rebecca for LCT mineralisation seems to have boosted the company’s confidence.    

ALY shares were trading at AU$0.024 in the early hours of 12 January 2023.