Critical Resources extends strike length at Mavis Lake lithium project

Critical Resources (ASX:CRR) shares climbed over 6% in the first hour of trade as the company flags fresh thick spodumene intersections hit at the Mavis Lake Lithium Project. 

The fresh hits were pulled from a new drillhole 50m to the east of known mineralisation in a step-out drillhole intended to prove that spodumene occurs further out into the project boundaries than previously recognised. 

With that now confirmed, the company is confident in publishing a significant maiden JORC resource, set for delivery in the coming months. 

What is spodumene, again? 

Spodumene mineralisation is commonly associated with lithium mineralisation, but assay results offering evidence of lithium grades remain pending.

Pilbara Minerals (ASX:PLS), which regularly conducts spodumene auctions, saw record prices logged for the rock at its August auction earlier this month. 

Investors should note the true nature of the Mavis Lake project cannot be meaningfully determined in these early stages until assay results are received. 

How significant is today’s result? 

What is known for sure is that the Mavis Lake project acreage overlies a lot of spodumene. 

So far, the company has hit spodumene in 56 of 62 drillholes sunk on site, a success rate of 90.3%. 

Last week, the company announced it had intersected spodumene nearly 30m thick, which pushed the share price up 11%. Preceding that, in the first week of August, it found one at 40m. 

Today, Critical Resources has found its third significant spodumene intersection: another 30m thick section pulled from the eastbound step-out drillhole.

The freshly announced hit sees spodumene mineralisation start at 20.8m underground, which the company describes as near-surface. 

What happens now? 

Management expects assay results from phase one drilling to be received “imminently.” 

The current drill run constitutes Critical Resources’ phase two of drilling at Mavis Lake. 

“[Our] confidence in the asset, as we work towards a JORC resource, keeps building as we progress phase two drilling,” company Chairman Robert Martin said. 

“Due to continued pegmatite intercepts, the company is now considering fast-tracking a phase three drilling program.” 

A look at the company's one year charts show that even after being battered by early-mid year sell-offs, the company is still far ahead of where it was this time last year