Eye on lithium and gold, Australasian Metals (ASX:A8G) sees action-packed March quarter

Highlights 

• Australasian Metals’ March quarter report outlines substantial developments at lithium and gold assets.
• A follow-up rock chip sampling program at the Mt Peake Lithium Project returned further high-grade lithium and tantalum results.
• The Company completed a DGPR survey over priority targets at Mt Peake.
• Australasian boosted its lithium footprint with the acquisition of a majority holding in the Barrow Creek Lithium Project.
• The Company commenced a ~2,500m RC drilling campaign at the Mt Clermont and Capella gold projects.

ASX-listed mineral explorer Australasian Metals Limited (ASX:A8G) has outlined an array of significant developments in its March 2022 quarterly report. During the period ended 31 March 2022, the Company remained active across diverse fronts, advancing exploration across its lithium and gold projects.

Notably, lithium is witnessing a sharp rise in demand from the EV sector, while gold always remains in demand.

Project portfolio of Australasian

*Capella Gold Project not shown in the image (Image source: Company website)

What’s more, the Company ended the period on a firm financial footing, with approximately AU$6.1 million in cash reserves, as of 31 March 2022.

Mt Peake Lithium Project picks up steam

The quarter saw the completion of a follow-up rock chip sampling program at the Mt Peake Lithium Project. The sampling program returned further high-grade lithium and tantalum results, including 1.15% Li₂O and 226ppm Ta.

The follow-up was based on the previous fieldwork operation undertaken by the Company in collaboration with the Commonwealth Scientific and Industrial Research Organisation (CSIRO).

The CSIRO partnership provided A8G with state-of-the-art equipment to carry out geological and geophysical surveys on the project.

During the reported period, A8G roped in a geophysics company for a Deep Ground Penetrating Radar (DGPR) survey over the defined exploration corridor covering the northwest and southeast side of the high-grade sample on the surface.

What’s next for Mt Peake project?

In the current and upcoming quarters, A8G plans to undertake infill soil geochemical surveys around the areas of anomalism, coupled with rock chip sampling in areas of outcrop exposure. The results will be combined with the DGPR findings to develop a complete understanding of the geology and mineralisation on the project.

To carry out drilling activities over the project area, A8G is working on the Mine Management Plan to obtain authorisation.

A8G acquires 90% of Barrow Creek Lithium project

In one of the major highlights of the March quarter, A8G completed the acquisition of a 90% stake in the Barrow Creek Lithium Project. The project lies in close vicinity of the Company’s Mt Peake Project.

The decision to increase its lithium footprint is strategic in nature as the demand for lithium is burgeoning in the EV market segment.

 Lithium assets of the Company (Image source: Company update, 28 April 2022)

Australasian Metals ramps up gold exploration

Australasian operates three gold projects in the Queensland region and one in Western Australia.

During the reported period, the Company announced a ~2,500m RC drilling program over its Mt Clermont and Capella Projects in Queensland.

At Capella, the drilling program will focus on the Ayres Rock prospect. The Company has identified a 25m² outcrop of quartz-veined ignimbrite, sericite altered and crosscut by fine-grained quartz at the prospect. The stratigraphy displays epithermal gold mineralisation.

On Mt Clermont, drilling will focus on the Retro Extended prospect where A8G has identified several targets with potential for further mineralisation. The Company plans to drill 11 holes to verify the results from historical drilling programs.

Prospects and drill hole locations on Mt Clermont and Capella (Image source, Company update, 28 April 2022)

The May Queen Gold Project is expected to see a geophysical survey during the year. Based on the results, A8G would carry out a follow-up drilling program on the tenement. The project comprises two granted Exploration Permits for Minerals, EPM 19419 and EPM 27746.

Australasian Metals has commenced initial fieldwork at its WA-based Fairview Gold Project. The exploration targets are similar to the neighbouring Northern Star-operated Mt Clement deposit and the Paulsens Gold Mine.

Shares jump over 5%

Triggered by the quarterly update, A8G shares edged up 5.319% to trade at AU$0.495 midday on 28 April 2022. The Company has a market cap of AU$24.49 million.