Oceana Lithium poised for 'aggressive exploration' in Brazil and Australia
Oceana Lithium is well position to target significant lithium discoveries in two pegmatite districts
Source: iStock
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KEY POINTS
- Oceana Lithium shares have more than doubled from its IPO offer price of 20 cents
- The oversubscribed IPO raised $6m to fund aggressive exploration of the Solonopole and Napperby Lithium Projects
- The company is working up drill targets for the Solonopole Project based in Brazil
Oceana Lithium (ASX: OCN) is one of few lithium stocks trading near all-time highs, following a massively oversubscribed $6m IPO.
The lithium junior posted its maiden quarterly report on Monday, reminding investors that the new funds will be directed towards 'aggressive exploration' of the company's 100% owned Solonopole and Napperby lithium projects in Brazil and Australia.
Solonopole: A systematic approach
The Solonopole project already has some momentum behind its back, with around 17km of identified lithium pegmatite mineralisation.
Since listing, Oceana has kicked off follow-up activities including surface mapping, sampling and review of government magnetic and radiometric datasets.
To date, none of the highly prospective prospects have been drill tested.
The initial exploration program is expected to return targets for immediate drill testing. Oceana plans to rank the targets ahead of a first pass drilling program.
Source: Oceana Lithium
During the quarter, the Brazilian government eased its lithium export rules, allowing for unrestricted foreign trade of lithium minerals and ores, and their derivatives.
Oceana views this move as a vote of confidence for the Brazilian lithium industry and makes the region more attractive for foreign investment.
Mines and Energy Ministry Adolfo Sachsida told Reuters that the measure is expected to move lithium investments from Eastern Europe and Asian countries towards Brazil, describing the country as a 'safe haven'.
Napperby: Early days
The Napperby Project is located 250km northwest of Alice Springs and covers a massive acreage of 650 km <sup>2</sup>. Numerous prospective pegmatite outcrops have been identified and warrant systematic field investigation, according to Oceana.
The project is early-stage in nature and the company plans to undertake a first-pass exploration program that consists of:
Geological mapping, following up on previously identified pegmatite occurrences
Rock-chip and soil sampling
Geological surveys
Oceana Lithium has a $16m market cap and $6m cash as at 30 June.
Oceana Lithium price chart
Oceana Lithium was a Market Index client at the time of publishing. All coverage contains factual information only and should not be interpreted as opinion of financial advice.
