Forrestania up 20% in second hour of trade as WA lithium drilling to kick off again next month

Lithium explorer microcap Forrestania Resources (ASX:FRS) is defying a red Tuesday on the bourse with the company today confirming it will kick off lithium drilling at its WA acreage next month, starting off 2023 on a high note. 

The company has received full approvals needed to commence drilling the 5,000m Reverse Circulation (RC) program targeting the following prospects:

• South Iron Cap East (testing new target identified in April) 

• Gemcutter (targeting possible lithium extensions) 

• Bounty East (undrilled target 6km to east of another mine) 

• Giant Pegmatite (targeting high-grade deposit)

The ‘Giant’ pegmatite prospect has previously turned over high-grade intercepts for hard-rock lithium. 

Chief among those intercepts of note is a 34m long core section @ 3.1% lithium concentrations; firmly establishing it as a ‘high-grade’ core and, Forrestania is hopeful, a broadly mineralised high grade deposit. 

In October, the company raised $2.7m to continue developing its self-titled Forrestania Project by way of a share placement, adding 18m shares to its register. 

The company’s exploration plan has shifted somewhat since earlier in the year, with the “Bannon” prospect having dropped off the radar, as well as the “Great Southern” and “Prince” targets. 

Regardless, investor sentiment is clearly bullish. 

Significant development

“Today’s announcement is significant marking the receipt of final approvals to drill the highly prospective Giant Pegmatite where a historic drillhole intercepted 34m @ 3.1%,” Forrestania boss John Hannaford said. 

“We are also planning to drill test other high quality prospects including South Iron Cap East, which is a significant, undrilled target given its proximity to IGO’s South Iron Cap lithium discovery.”

Hannaford described the start of 2023 for Forrestania as “very active.” 

Spodumene potential to be seen

Given that the company is targeting pegmatite mineralisation, investors will likely be keenly watching to learn if it is spodumene or lepidolite. 

Spodumene is the preferred mineralisation of choice for battery metal supply chains; the mineral inherently contains lithium and is easier to process downstream than its counterparts. 

Lepidolite, on the other hand, is also quite common (and the specialty focus of some ASX-listed explorers), but is ultimately harder to process downstream. 

Spodumene auctions, conducted by Pilbara Minerals (ASX:PLS), have been a significant money-maker for the company all year.

A look at Forrestania's three month charts