THE BOURSE WHISPERER: Cobre Montana (ASX: CXB) and Pilbara Minerals (ASX: PLS) have agreed to extend their Memorandum of Understanding (MoU) to evaluate the potential for developing a lithium mica processing operation in the Pilbara region of Western Australia’s Pilbara.
Cobre Montana currently has the exclusive Western Australian rights to the only practical metallurgical process for commercial recovery of lithium chemicals from micas.
The extension of the MoU follows on from recent geological results achieved by Pilbara Minerals from drilling being conducted at the company’s Pilgangoora project, located 150 kilometres southeast of Port Hedland.
Cobre Montana explained that the results were released towards the end of its initial due diligence period, under the terms of the original MoU.
As pilbara Minerals has signalled plans for further drilling to extend into areas considered to be more favourable for the occurrence of lithium micas, both parties agreed to extend the MoU timeline by seven months to the end of December 2015.
Pilbara Minerals recently released an updated JORC 2012 Mineral Resource for the Pilgangoora project with an Inferred and Indicated lithium Resource of 12.73 million tonnes at 1.42 per cent lithium oxide containing 181,000 tonnes of lithium oxide.
“Following Pilbara Minerals’ upgrades resource statement, and Cobre’s successful steady-state lithium production tests, the parties have agreed to extend the evaluation term for assessing the lithium mica potential,” Cobre Montana managing director Adrian Griffin told The Resources Roadhouse.
“Pilbara Minerals plans to extend it drilling at Pilgangoora, in the north-west of Western Australia, following spectacular lithium intersections.
“The drilling will extend to the north into areas likely to contain more abundant lithium micas.
“Under the terms of the agreement between the parties, Cobre Montana will evaluate the commercial potential of the lithium micas and provide Pilbara Minerals with a proposal to develop them.”