THE BOURSE WHISPERER: Lithium Australia (ASX: LIT) and Venus Metals Corporation (ASX: VMC) have executed a Memorandum of Understanding (MoU) to initially test the commercial lithium potential of Venus’ holdings in the Pilbara region of Western Australia.
The MoU will focus on Venus’ Pilgangoora project, southeast of Port Hedland with a broad objective to determine whether potential exists for sufficient feedstock to feed a Pilbara lithium processing facility to produce high-grade lithium carbonate and/or hydroxide for use in advanced hi-tech applications including lithium ion batteries.
Under the terms of the MoU, Lithium Australia will pay a fee for exclusive access to the Venus ground and will sole fund exploration over the project tenements in the first year following tenement grant.
Venus will retain 100 per cent ownership of its Pilgangoora tenements.
Test work to be carried out by Lithium Australia will include field inspections, data and observations across the project area and in the laboratory to confirm the suitability of the lithium mica, spodumene and clay materials within the MOU area as a source for battery grade lithium carbonate and lithium hydroxide.
“We have been established in the Pilbara area for a long time, having maintained a similar ongoing program with Pilbara Minerals since 2014,” Lithium Australia managing director Adrian Griffin said in a joint announcement to the Australian Securities Exchange.
“Our past work has uncovered previously unrecognised lithium potential there and our modelling strongly suggests the potential for further lithium occurrences on the Venus Metals ground.
“This comes on the back of recent discoveries by Lithium Australia of abundant lithium mica at Ravensthorpe on WA’s southern coastline.
“The potential of the Pilgangoora hot spot is enormous as can be seen by the success of Pilbara Minerals in establishing there a world-class spodumene inventory.
“We believe a combination of access to feedstock, and the development of processing technologies, may well be the convergence required for establishing a lithium chemical industry in the Pilbara, and to feed the world’s emerging battery factories.
“We are keen to work with Venus Metals which has recognised the potential benefits of Lithium Australia’s value-adding strategy; and has established a significant footprint in and around the Pilgangoora.”