Lithium Australia NL (ASX: LIT, 'the Company') is pleased to provide investors with an update to its raw materials strategy for 2020 and beyond.
The Company's raw materials division is charged with establishing a quality lithium resource base, in order to provide options for feeding into downstream processing facilities that may include the Company's 100%-owned LieNA process.
Lithium Australia is considering sourcing lithium minerals from mine-waste streams (historical dumps and tailings) or as discharge from currently operating mines; however, primary supply opportunities, which includes the Medcalf prospect, are also being evaluated.
Medcalf spodumene deposit - Western Australia
In April 2019, the Company announced that it had identified strongly mineralised lithiumbearing pegmatite swarms within its Medcalf prospect, near Lake Johnston. The dominant lithium mineral is spodumene.
In the announcement, the Company noted that the Medcalf prospect provided the following.
A cluster of stacked pegmatite dikes with abundant spodumene, outcropping over a strike length of 450 metres and a width of 100 metres.
Subsequently, a lithium-in-soil geochemistry anomaly suggests possible extensions under cover.
Spodumene samples returned very low levels of deleterious elements.
Prior to drilling, Lithium Australia requires the approval of the Department of Mines, Industry Regulation and Safety for a programme of work, as well as completion of a botanical study. Both are well in-train.
Subject to receiving the requisite approvals, the inaugural drilling programme will be completed during the second quarter of 2020 and will comprise approximately 12 reverse circulation drill holes for 2,500 metres. There will be provision for additional holes.
Previously, the Company issued an Exploration Target for the Medcalf prospect that was in the range of 5 million tonnes ('Mt') to 8 Mt at 0.8% lithium oxide ('Li2O') to 1.2% Li2O.
The Exploration Target is not a JORC compliant Mineral Resource - the potential quantity and grade are conceptual in nature, as exploration to date has been insufficient to determine a Mineral Resource and there is no certainty that further exploration work will result in the determination of a Mineral Resource.
Mt Deans East lithium prospect - Norseman, Western Australia
Lithium Australia has concluded a transaction with Aruma Resources Limited (ASX: AAJ), following the grant of the Mt Deans East tenement (P63/2062, 'the Tenement') in September 2019. Under the terms of the agreement, the Company will: provide Aruma with $15,000 and issue $75,000 worth of fully paid ordinary ('FPO') shares in Lithium Australia and keep the Tenement in good standing for 9 months to earn a 50% Interest; subsequently issue a further $50,000 worth of FPO shares and keep the Tenement in good standing for 18 months to earn a further 30% interest (total 80% Interest), and thereafter contribute to further exploration on a pro-rata basis.
Overall, the Mt Deans area has been evaluated for lithium-caesium-tantalum pegmatites over many years, initially with tin and tantalum as the exploration focus. More recently, lithium mineralisation has been located and it was this that drew the Company's attention to the region.
The Mt Deans East prospect is strategically located, being adjacent to the GoldfieldEsperance Highway and within close proximity to other developing lithium projects, including the Buldania project of Liontown Resources Limited (ASX: LTR) and the Pioneer Dome project of Pioneer Resources Limited (ASX: PIO, 'Pioneer').
Contact:
Adrian Griffin
Tel: +61 (0) 418 927 658
Email: Adrian.Griffin@lithium-au.com
About Lithium Australia NL
Lithium Australia aims to ensure an ethical and sustainable supply of energy metals to the battery industry (enhancing energy security in the process) by creating a circular battery economy. The recycling of old lithium-ion batteries to new is intrinsic to this plan. While rationalising its portfolio of lithium projects/alliances, the Company continues with R&D on its proprietary extraction processes for the conversion of all lithium silicates (including mine waste), and of unused fines from spodumene processing, to lithium chemicals. From those chemicals, Lithium Australia plans to produce advanced components for the battery industry globally, and for stationary energy-storage systems locally. By uniting resources and innovation, the Company seeks to vertically integrate lithium extraction, processing and recycling.
LITHIUM AUSTRALIA LIMITED 
