After finding thick hits of spodumene at its Mavis Lake project last month, Critical Resources’ (ASX:CRR) latest assay results for the project have turned over what shareholders were hoping for: high grade lithium.
Lithium concentrations of 4.32% were detected in a 1 metre section of a larger 8m core.
While that 1m core on its own cannot underpin a commercial operation, it is early-stage evidence that high grade lithium is potentially present on-site in a number of locations this current drill run may miss.
Geoscience Australia notes on its website that lithium projects typically hover around mineralisation concentrations of 1-3%, firmly placing Critical Resources’ piecemeal find as high-grade.
Now, the company will move ahead with further metallurgical test work on the samples it has retrieved.
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 last month.
In mid-August, Critical Resources extended the strike length at its project as spodumene mineralisation was found to be significant on-site.
Only days earlier, it had made that discovery after it drilled through thick spodumene intersections.
Spodumene is the gold standard for hard rock lithium mining projects, as far as ease of downstream refining goes.
Remembering that lithium concentrations of 4% are high grade according to Geoscience Australia, consider the following additional assay results from Mavis Lake:
8.15m @ 1.70% lithium from 89m depth, including
01.0m @ 4.32% lithium from 91m depth
23.9m @ 1.55% lithium from 112m depth, including
11.15m @ 02.28% lithium
03.80m @ 03.09% lithium
Shareholders should note depths over 80m are significant for any hard rock mining operation and, were that to be an open-pit operation, costs would be significant.
Given that the company has not posted its JORC yet, it’s likely a prospective mine plan is off the table for now, so shareholders and investors alike will simply need to be patient to see what, exactly, geotechs intend to do to get this deep.
“To receive such exceptional results containing the company’s highest grading results at Mavis Lake is outstanding,” Critical Resources chairman Robert Martin said.
“These results further build our confidence in the project and reinforce our decision to commence metallurgical test work and resource modelling…Mavis Lake [may potentially] position Critical Resources as an emerging lithium developer.”
Critical has a market cap of $89.2m and is ranked 247 of 915 companies in the materials sector.
At the end of the June quarter, Critical Resources held $9.065m in cash.
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