Midas Minerals hits lithium at its Newington project in WA; assays pending for 1,030 samples

Midas Minerals (ASX:MM1) has reported success today in the first batches of assays from drilling at the company’s WA Newington lithium-gold project, with lithium proven to be present in brief core samples. 

A further 1,030 auger and rock samples are pending assay ahead of Phase II drilling. 

Midas is ultimately hoping to hit spodumene pegmatites; spodumene is what Pilbara Minerals (ASX:PLS) has much success in auctioning off monthly. 

Drilling pegmatites over an 8km strike strike length, Midas hit pegmatites in 85% of the RC holes it perforated through the campaign, which focused heavily on Newington’s Kawana East prospect. 

Newington was recently acquired by the company, a 311km2 play overlying the northern portion of the Southern Cross and Westonia greenstone belt formations respectively; well known for lithium. 

So what has Midas found? 

Today’s reported assays come from the western end of the Copperhead Shear, where 14 holes were positively assayed for lithium mineralisation. 

Those 14 holes were part of a larger package of 53 holes that hit pegmatite mineralisation. 

Typically, lithium in hard rock concentrations over 1% is considered mid-to-high-grade. 

Midas is reporting: 

• 06m @ 0.30% lithium from 26m depth, including: 

  • 03m @ 0.40% lithium 

• 07m @ 0.40% lithium from 25m depth, including: 

  • 04m @ 0.50% lithium 

• 03m @ 0.30% lithium from 14m depth, including: 

  • 01m @ 0.60% lithium 

While the grades fall short of widely accepted high-grade classifications, the moves come as evidence Midas is sitting on a prospective acreage proven to have lithium present at relatively shallow depths. 

The company is planning to move to Phase II drilling at Newington in the March quarter of 2023, all cards in order, where it already has a raft of newly discovered and previously untested pegmatite targets to follow up on. 

Specific aim of locating spodumene: Midas 

“We are planning further drilling to test additional fractioned pegmatite clusters to the north and west of the lithium pegmatites located to date,” Midas MD Mark Calderwood said. 

“[We have] the specific aim of locating spodumene-rich pegmatites. Prospectively-wise, the most fractioned pegmatites intersected to date have very limited surface exposure.”

“Our maiden drill program at Newington was highly successful in confirming lithium pegmatites of decent scale, and importantly, [including] visible lithium minerals.” 

A glance at Midas's six month charts show how the price has coped during a particularly unusual 2022. Are investors overlooking this smallcap?

Disclaimer: Market Index helps small-cap ASX listed companies connect with Australian investors through clear and concise articles on key developments. Midas 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.