Arcadia Minerals (ASX: AM7, FRA: 8OH) reveals lithium brine and clay prospects in March quarter report

Highlights

• Encouraging assays from the Lithium Clays project hinted at a potential upgrade of the Mineral Resource classification over the Eden Pan.
• Promising grab samples at the Bitterwasser Lithium Brines Project indicate lithium concentrations increase at depth. Final drill samples and pump test results expected this current quarter.
• The company has been progressing mine construction work centred on the Swanson project.

Arcadia Minerals Limited (ASX: AM7, FRA: 8OH), a diversified exploration firm, continued developments across its Lithium in Clays and Lithium in Brines, and Swanson Tantalum Mining projects in the quarter ended 31 March 2024.

During the quarter, the company spent AU$ 240k on project exploration and development activities. AM7 ended the quarter with a cash balance of AU$ 113k. Subsequent to the quarter end, the Company went into trading halt to firm up a capital raise.

Encouraging drill assays for Bitterwasser Lithium Clays Project

The quarter saw encouraging assays from infill lithium drilling  over the Eden Pan within the Bitterwasser Lithium Clays Project. For detailed discussion on assays, read here.

The drill results indicate a possible upgrade of the Mineral Resource classification at Eden Pan, which may lead to a Pre-Economic Assessment.

Increased lithium grades at Bitterwasser brines project

The company completed drilling six of the nine planned holes at its project.

Six samples were collected from shallow drill holes in the Upper-Sand Unit.  At a depth of 68 metres, these samples yielded up to 84 parts per million, representing approximately the midpoint of the Bitterwasser Brine Pool.

The Bitterwasser basin has a geophysical anomaly of 42km x 9km. The initial results are highly encouraging and indicate the potential for a significant lithium discovery, highlights the company.

The company has finalised an extensive sampling program at 5m intervals and pump tests.

Mine construction progress at Swanson Tantalum Mining Project

The company also provided updates on the progress of mine construction at this project. To date, prepayments totalling AU$3,245,000 have been made for crucial components of the Swanson Processing Plant.

The quarter saw construction of the access road and progress on the ore supply road. Work on the water pipeline and installation of the powerline for NamPower electricity provision is planned with site preparation underway at the Swanson Plant by HeBei Construction.

First production is anticipated by the first quarter of 2025.

AM7 shares traded at AU$0.070 at the time of writing on 9 May 2024.