Materials

Global Lithium hits high-grades in Kalgoorlie WA ahead of planned resource upgrade

Tue 31 Jan 23, 1:52pm (AEDT)
Electric car with lithium batteries plugged into charging station
Source: iStock

Key Points

  • Global Lithium management has outlined its plans to expand the Mineral Resource for its WA-based lithium project
  • A Scoping Study for the Manna project is due before Q2 CY2023
  • Study won’t include high-grades reported Tuesday, implying document will be updated before Final Investment Decision (FID)

Global Lithium (ASX:GL1) reported a fresh raft of successful hard-rock lithium drill intersections from its WA-based Manna Lithium Project (MLP) in Kalgoorlie on Tuesday.

Assay results turned over high grades per the classification adopted by investor advisory firm Next Investors, which reflects lithium in concentrations over 1%.

Both Reverse Circulation (RC) and Diamond Drill (DD) rigs were used. RC drilling collects rock chips in a chamber from underground whereas DD drilling returns whole cylindrical cores to surface. DD drills can typically run deeper than RC.

GL1’s latest drill results were: 

RC results 

  • 13m @ 1.4% lithium from 34m depth 

  • 15m @ 1.2% lithium from 107m depth 

  • 17m @ 1.6% lithium from 114m depth 

  • 10m @ 1.3% lithium from 227m depth 

DD results 

  • 7.45m @ 1.13% lithium from 232m depth

  • 9.41m @ 1.68% lithium from 341m depth 

  • 6.43m @ 1.5% lithium from 306m depth 

  • 9.01m @ 1.0% lithium from 462m depth 

Resource upgrade on the cards 

“These assay results, based on drilling that was undertaken after the mineral resource cut-off point, will provide a significant addition to the overall scale of [the project],” company exploration chief Stuart Peterson said.

What that means: the assay results reported on Tuesday are not included in the current bankable JORC-compliant Mineral Resource Estimate (MRE) at MLP, and provide evidence that grades may be better than currently reflected.

Global Lithium’s Manna resource currently sits at a total of 32.7 million tonnes of ore with an average lithium grade of 1%.

Scoping study drops soon

Tuesday’s results are not reflected in any existing MRE, and nor will they be included in an upcoming Scoping Study due for release in Q1 of the 2023 calendar year. 

What an upgraded MRE would ultimately afford the company is an enhanced degree of bankability, should it be able to prove it can access a higher quantity of lithium oxide for sale into global markets.

An additional 3,500m worth of core and core equivalent remains in the assay lab for which Global Lithium is awaiting receipt. 

“At the end of the Manna 2022 drilling program there was approximately 5,000 outstanding assays in the laboratory system…not included in the significant MRE upgrade announced on 15th December 2022,” the company wrote.

A look at Global Lithium's six month charts
A look at Global Lithium's six month charts

 

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Written By

Jonathon Davidson

Finance Writer

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication.

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