MinRex (ASX:MRR) shares have made small gains today, up 3.85% to 5.4c as the company advises investors it will commence drilling at the Pilbara WA ‘Sisters’ lithium project later this month.
It’s worth noting the company does not need to spend money on drilling to confirm lithium mineralisation. It already knows it is there.
Surface assays have returned mineralised lithium concentrations of up to 3.42%. Investor information provider Undervalued Equity notes lithium assay results exceeding concentrations of 1% are considered high grade, underscoring the potential of MinRex’s newly acquired acreage.
Late August will see the construction of a drilling pad commence on-site with the 4,000m drill run proper to follow immediately after. WA regulators have approved the company’s drill plans, and heritage agreements are done and filed.
Also worth noting: the Sisters project is located only 1.75km west of Global Lithium’s (ASX:GL1) Archer deposit, which boast a resource of 10.5Mt of ore at concentrations of 1% lithium.
Should Minrex find readings over 3% to be the norm on-site, the commercial profile of MinRex could feasibly overtake its closest neighbour.
Once MinRex drilling contractors gets to work on-site, they will have no shortage of targets.
Existing geochemical tests have returned evidence of further lithium mineralisation across an area 3.2km long and 480m wide.
A number of pegmatite outcrops are present on-site, which often represent best-case geological qualities for lithium projects, as surface pegmatites allow for faster access to initial testworks and further studies.
Within the 3.2km long target, eight key priority areas are flagged for exploration through the remainder of the calendar year.
MinRex is telling the market what it’s got, and the market is listening. Let’s take a surface look at MinRex’s financials:
One week performance is up 50%
One month performance is up 74%
One year returns are at 200%
Compared to the ASX200 on a one year basis, MinRex outperforms it by 206%
The company has a market cap of $57.2m with 19.2m shares on offer.
At the end of the June quarter, MinRex held $14.1m in cash.
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