Australasian Metals boasts raft of new lithium targets at its NT-based Mt. Peake project

Australasian Metals (ASX:A8G) has a busy second half of the year ahead of it as the company flags a number of new targets at its Mt. Peake lithium project in the NT’s Northern Arunta region, an emerging lithium province for domestic explorers. 

Shares are up 3.57% in morning trade to 29c, bringing the company’s one year return performance to a neat 100%. 

Using trademarked soil sample technology, Australasian has uncovered a number of targets in the northwest cover of the exploration licence boundary permitting the project, EL/32830. 

Unique sampling method overcomes ground cover 

“Outcropping bedrock in the northwest corner of [the permit] is rare due to the dominant soil cover which limits access to prove the geology directly,” Australasian Metals MD Dr. Qingtao Zeng said. 

“The geochemical survey provides us a great tool to explore under the shallow covers…in combination with [previous] high-grade rock chips identified at surface, our new data helps us refine targets ahead of maiden drilling.” 

The company elected to use a technology known as Ionic Leach sampling to detect trace elements of lithium on-site, which also picks up caesium, tantalum, and rubidium, the latter being another high-value metal in its own right. 

Back in May Krakatoa Resources (ASX:KTA), as part of operations unrelated to Australasian Metals, noted rubidium carbonate prices were over US$6,000/kg. Lithium prices, likewise, are up over 350% year-on-year.

Initial results point to high grades 

Mapping and sampling surveys which remain ongoing have so far confirmed two lithium targets on-site with high concentrations of mineralisation detected in two samples. 

Lithium mineralisation over concentrations of 1% in samples is often considered high-grade. 

Australasian metals reports from two samples concentrations of: 

• 1.61% Lithium (sample MP10127) 

• 1.15% Lithium (sample JC001)

The company notes the samples do not provide substantial evidence to conclude commercial quantities of lithium are present on-site and that mineralisation underground between the two sample locations is not yet determined. 

Assay results from recent and ongoing activities will greatly assist in coming to a conclusion on the extent of mineralisation ahead of Australasian’s maiden drill run at Mt. Peake. 

The company has commissioned listed geotech provider ALS Laboratories (ASX:ALQ) to take on its samples in the lab. 

What comes next?

Australasian Metals will now work towards concluding its ongoing field mapping and follow-up sampling work at Mt. Peake, noting sampling could be extended to the southeast of the project area to cover as much ground as possible. 

The company remains in negotiation with agricultural entities whose interests overlap the permit boundaries so as to proceed with the maiden diamond drill run on-site. 

Notably, Australasian metals will see the Australian government’s peak science organisation, CSIRO, re-interpret geochemical data at its laboratories. Investors should note given the nature of CSIRO, results could take some time to come back to Australasian. 

Australasian Metals' three month charts show a company slowly recovering mid-year losses. Is this the start of a solid upward trend?