Midas launches maiden 2,500m drill run on WA lithium pegmatite belt acreage

Midas Minerals (ASX:MM1) first RC drill run on-site has now officially kicked off as geotechs search for lithium pegmatites known to occur on site. 

So far, the company has had success in surface mapping pegmatite on-site with anomalous lithium mineralisation already confirmed in initial assay work. This was confirmed in early rock chip samples. 

Earlier this month, the company noted that it was still waiting for the return of over 100 rock chip sample assays. Midas shares were sent up 13.5% at the time. 

Previous auger geochemical samples returned promising data over 2.4km of prospective lithium strike, including a hit of 1.27% Li2O—giving the company at least one hit of ‘high grade’ lithium as classified by investor information service Undervalued Equity. 

Midas will now retrieve a total of 2,500m of core equivalent over an 8km strike length at Kawana East, described as overlying a lithium pegmatite belt. 

The geotech team is aiming to get an idea of where pegmatites occur on-site and where that mineralisation ends; so as to inform the direction of further drilling campaigns which will likely include diamond drill runs. 

Understanding the basics 

Management described its intention to develop an understanding of the local geology. 

“Exploration to date at Newington has [located] at surface lithium pegmatites containing anomalous mineralisation,” Midas MInerals MD Mark Calderwood said. 

“Our maiden drill program will provide greater understanding of the Kawana East pegmatite geology and help us shape future exploration plans at this highly prospective project.” 

Worth noting is that Calderwood is the same individual who built up Perseus Mining (ASX:PRU). 

Midas wasting no time 

Midas Minerals only acquired the Newington project back in April this year when it took the asset off the hands of DiscovEx Resources (ASX:DCX). 

Before that, the company had only listed on the ASX in September 2021, for which it raised $6m. 

The Newington project is located within a busy part of the state and comprises 12 tenements covering 311km² located some 90km north of Wesfarmers’ (ASX:WES) Mt. Holland lithium project. 

Also worth noting is that Ramelius Resources’ (ASX:RMS) Edna May gold mine is located nearby to the east. 

The company has flagged before the potential of coincident gold mineralisation at Newington, but for now, the company is focused on becoming a battery metals producer. 

The results of over 100 pending rock chip results, if highly successful, will likely add momentum to this ambition.

Despite coming down from last week's highs, the fresh revival of interest in Midas Minerals, following sell-off season, is clear

Disclaimer: Market Index helps small-cap ASX listed companies connect with Australian investors through clear and concise articles on key developments. Midas Minerals was a client at the time of publishing. All coverage contains factual information only and should not be interpreted as an opinion or financial advice.