Lithium Australia (ASX:LIT) JV partner discovers first pegmatite lens at Greenbushes South Project

Highlights

• Lithium Australia’s JV partner has delineated 18 key target zones for lithium pegmatites at Greenbushes South Project.
• A follow-up mapping and sampling of the first target site resulted in a pegmatite outcrop lens of 200m X 40m.
• Other key targets are expected to witness fieldwork from July.

Lithium Australia Limited (ASX:LIT) is buoyed up by an exciting update concerning its joint venture project, Greenbushes South Lithium Project.

In a major development, the joint venture partner has discovered the first pegmatite lens at the project.

Galan Lithium Limited (ASX:GLN) is the operator of the project and controls a majority stake of 80%, while LIT controls a 20% interest in the lithium project located in Western Australia, approximately 15km south of the Tier 1 Greenbushes Lithium Mine.

18 lithium targets at Greenbushes South Project

An airborne geophysical survey was flown recently over the Greenbushes South tenement area, E70/4790. The survey provided high-resolution radiometric and magnetic data, which on processing led to the target generation on the project.

The JV partners hired the services of Southern Geoscience Consultants (SGS) for the processing and interpretation of the data and the development of key target zones for lithium-bearing pegmatites.

Structural and lithological information was incorporated with field mapping and surface geochemistry for target generation on Greenbushes South.

The final report from SGC has delineated 12 pegmatite targets within the tenement E70/4790, and six additional targets were identified within Galan's pending tenements.

Related read: Lithium Australia’s (ASX:LIT) JV partner delineates strong evidence of pathfinder elements at Greenbushes South

Discovery of the first pegmatite lens

A soil sampling and field mapping program has already commenced on the first of the newly identified targets, GS11 on E70/4790.

Pegmatite target locations on E70/4790 including GS11 target area

(Image source: Company update, 15 June 2022)

Field mapping activities at the target GS11 returned a pegmatite outcrop, 200m long and 40m wide. The pegmatite has similar macroscopic mineralogy to those at the Greenbushes Lithium Mine in the north.

The JV partner collected four representative rock chip samples from the surficial pegmatite of GS11. Along with this, a soil assay program has also been undertaken with 65 soil samples so far assayed across the potential target zones.

The soil sampling program is aimed to identify potential pegmatites at depth by detecting high concentrations of pathfinder elements, including As, Sn, Cs, Ta, Rb at the surface.  The samples of rocks and soils have been sent to a laboratory for analysis.

Related read: Lithium Australia (ASX:LIT) set to be the sole owner of Envirostream

Development on Conservation Management Plan

The Department of Biodiversity, Conservation and Attractions (DBCA) has sent the final revision of the Conservative Management Plan (CMP) to the JV partner Galan.

The CMP includes the proposed planned exploration activities over the pending Greenbushes South tenements (E70/4889, P70/1702 & P70/1703).

It also covers a planned soil sampling and ground geophysics activity within the Hester State Forest/Proposed Nature Reserve.

Exploration activities are expected to commence in the third quarter of 2022.  

Also read: Lithium Australia (ASX:LIT) ropes in Lycopodium to drive DFS for LFP manufacturing facility

The DBCA indicated that pending tenements would be submitted for ministerial approval, to carry out low-impact exploration activities, subject to the final revisions of the CMP.

Share price: LIT shares were trading at AU$0.071 apiece midday on 16 June 2022, up 4.4% from the last close. The company has a market cap of AU$70.4 million.