THE DRILL SERGEANT: Lithium Australia (ASX: LIT) announced preliminary results of its first drilling campaign at the company’s Sadisdorf Joint Venture in Germany.
Lithium Australia is in a farm-in deal and JV with Tin International AG, a subsidiary of exchange listed Deutsche Rohstoff AG (FRA: DR0) as partner.
The company has declared its aspirations to use its wholly-owned and proprietary SiLeach hydrometallurgical lithium processing technology to unlock the lithium potential and value of historical tin-polymetallic deposits such as Sadisdorf – which is ideally located to supply the European battery and electric vehicle market – by recovering lithium from the residues of conventional tin concentration processes.
Lithium Australia said the latest results represent the first drilling at Sadisdorf since 1990 and follows a maiden Inferred Mineral Resource estimate of 25 million tonnes at 0.45 per cent lithium oxide (Li2O) (0.32 per cent Li2O cut-off).
The program of three diamond holes was designed to confirm historic data and test the outer boundaries of the mineral resource model.
The drilling encountered intercepts including 32.19 metres of continuous lithium mineralisation at 0.52 per cent Li2O.
Other intercepts of tin mineralisation were also encountered of up to 11.65 metres at 0.35 per cent tin.
“Firstly, this is a welcome start to our first on-the-ground work at Sadisdorf – placing the company at the forefront of the bourgeoning battery chemical sector – much of which is European led,” Lithium Australia managing director Adrian Griffin said in the company’s announcement to the Australian Securities Exchange.
“The mineralisation encountered in the first drill hole strongly supports our vision of unlocking the value of the historic tin-tungsten Sadisdorf mine by adding lithium as an additional value driver, at a location in close geographical proximity to emerging European new era battery markets.
“Our SiLeach processing technology is ideally suited for processing Sadisdorf’s greisen-style polymetallic mineralisation which contains abundant lithium micas.
“With tin increasingly regarded as a strategic technology metal, the tin assays encountered also confirm our view of the potential of Sadisdorf as a significant polymetallic deposit.
“Testwork on fresh samples will commence shortly and we look forward to the full assay results from the remaining two drill holes.”