Midas shares rise on high grade lithium assays in WA. Over 100 more samples are pending

Midas Minerals (ASX:MM1) has today witnessed a welcomed reversal on recent losses as the company announces the presence of high-grade lithium samples from initial exploration work at its Newington project in WA. 

Midas has received a batch of 56 rock chip samples taken from an area over 10km and covering the Kawana and Mt. Correll pegmatite targets. 

The gold explorer is now advancing its battery metal plans, with over one hundred more lithium assay samples due in the near future. When, exactly, that will be is hard to say. Assay laboratories are currently backlogged state-wide. 

At any rate, the sample announced today provides evidence of at least piecemeal high-grade mineralisation on site. 

This is likely what is driving market enthusiasm for Midas today. '

Also worth noting is a battery metals rally moving the market on Monday, following the passing of Biden’s new climate funding laws.

Geological specifics

Investor advisory firm Next Investors notes projects with lithium concentrations in cores over 1% total density are considered high-grade.

Midas is reporting one lithium assay sample at 3.6% lithium; and another at 1.3%. 

It’s worth noting Kawana lithium is hosted in lepidolite, and not spodumene. 

Lepidolite is a common mineral which hosts lithium, but is often overlooked in favour of spodumene. Lepidolite refining practices to yield lithium metals are less developed than that for spodumene, and fewer companies focus on lepidolite exploration. 

A number of companies on the ASX boast lepidolite deposits, including De Grey Mining (ASX:DEG), Lithium Australia (ASX:LIT), Metals Australia (ASX:MLS), and Lepidico (ASX:LPD).

What’s next at Newington? 

As Midas awaits the return of over 100 more assay samples, it gets ready to launch an RC drill run on-site. 

Mapping and sampling continue to progress at the battery metals project, including the location of pegmatite outcrops (hundreds are present on the acreage) and auger drilling at key target areas. 

But the RC run at Kawana East is likely what investors have their eye most keenly fixed on, and there’s good news on that front: the drill run is expected to launch this month. 

How's Midas faring through 2022?

The company is likely well placed to progress as per usual. At the end of the June quarter, Midas had $4.5m in cash. 

Year to date performance is up 55.56%, though, one year returns are only up 5%. 

Midas has a market cap of $11.9m and is ranked 641 of 911 players in the materials sector. The company’s full year results will afford more transparency to investors on the ins and outs of the explorer's health.

Midas Mineral's three month charts show the impact of sell-offs which brought the company's share price down from H1 highs. Upcoming assay results could push an upward trend higher, depending on grade.