New Wisdom Investment Limited

Derelict mines summit shines spotlight on rehabilitation

(Dec 13, 2016)

High-grade assay results at the Electra lithium project at Sonora in north-west Mexico have encouraged minor partner Lithium Australia (ASX: LIT) to lift its stake from 25% to 49%, as maiden drilling nears.

A third of the latest 31 samples, from ongoing surface reconnaissance sampling and trenching at the Agua Fria discovery in the southern part of Electra, had more than 1,000ppm lithium and an average of 1,135ppm.

The average across all samples was 783ppm.

Lithium Australian managing director Adrian Griffin described the results as remarkable and significant so early in a new project’s lifespan.

“Grades in the range of 100-200 ppm lithium may be considered to be anomalous but grades in excess of 1,000ppm are often included in resource calculations, so Agua Fria has literally leapt out of the starting blocks on data known to date,” he said.

“The drilling outcomes however, will be the real determinant of this prospect’s true potential at depth.”

The company has the option to earn up to 65% from project owner, Canada’s Alix Resources Corp.

The partners intend to start Agua Fria’s maiden drill programme in the March quarter of 2017.

The project is adjacent to Bacanora Minerals and Rare Earth Minerals’ La Ventana lithium project, part of the larger Sonora Lithium project, considered one of the world’s largest lithium resources.

Alix advises the clay horizons have been traced along 4.5km of strike, with indications of width extending up to 800m.

Griffin believes the clay nature of the mineralisation at Electra will be ideally suited to hydrometallurgical techniques.

Lithium Australia is developing disruptive lithium extraction technologies and has strategic alliances with a number of companies.

There is a widely anticipated growing demand for lithium in electric vehicle batteries and energy storage.

Creat from