Askari Metals (ASX:AS2) quickly shot up 16% in the first hour of trade on news the polymetals explorer has acquired the Myrnas Hill lithium project in WA.
The acreage containing Myrnas sits nearby a number of other successful projects; for this reason, management have described the area as a ‘Goldilocks zone.’
On the off chance you’ve never read that fable, what they’re trying to say is: “everything is just right.”
Askari buys the play off Raiden Resources (ASX:RDN), sending the microcap’s share price up 17% to 1c. Askari picks up the play for only $0.2m.
One big thing to note: the project sits under 30km away from Global Lithium Resources’ (ASX:GL1) Archer lithium deposit, part of its Marble Bar Lithium Project.
The resource for that project underpins a whopping 10.5M tonnes of ore at a concentration of 1% lithium. Many Australian projects boasting concentrations of and above 1% are widely accepted as middle-upper grade, if not high grade altogether.
“The Myrnas Hill lithium project is situated in the Pilbara region which [has] a reputation for being the leading jurisdiction for hard-rock lithium exploration,” Askari Metals Gino D’Anna said.
“Exploration success by others around the project has demonstrated the fertility of this area and we are very excited to commence exploration immediately.”
“The project is highly complementary to our district-scale Yarrie Lithium Project and we see this as a terrific opportunity.”
A data review will commence shortly covering that information the company possesses on the area, including soil geochemistry data and geotechnical satellite scans.
Fieldwork will follow the data review; Askari has not yet given any indication of timeline as to drilling.
The company added it is in a strong cash position to proceed with exploration; Askari ended the June quarter with $4.3m in cash.
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