THE BOURSE WHISPERER: Lithium Australia (ASX: LIT) announced the expansion of the company’s lithium holdings throughout Western Australia with the acquisition of additional acreage in the prospective Gascoyne region.
The company has acquired three new prospects via the 100 per cent takeover of private company, Lithophile Pty Ltd.
Lithium Australia declared the prospects to all be located within a recognised area of high lithium potential in the Gascoyne Complex located 750 kilometres north of Perth.
The new holdings are in close proximity to Lithium Australia’s existing exploration licence application in the Gascoyne.
The acquisition of Lithophile gives Lithium Australia access to four prospects within the Gascoyne Complex with its consolidated project area in the Gascoyne now consisting of four prospects:
Mt James 1:
E09/2200 – Lithophile exploration licence application;
Mt James 2:
E09/2201 – Lithophile exploration licence application;
E09/2191 – Lithophile exploration licence application; and
E09/2168 – LIT exploration licence application.
The company explained the Mt James and Thomas River prospects target the volatile-rich leucogranite source rocks.
The Yinnietharra prospect is based on known occurrences of tin, tantalum, beryl and tungsten hosted by pegmatites that are distal from the magma source.
Lithium Australia said the association of rare metals, together with pegmatite and leucogranite source rocks, is a very promising indicator for lithium mineralisation.
“The Gascoyne has many of the attributes of Western Australia’s other emerging lithium centres,” Lithium Australia managing director Adrian Griffin said in the company’s announcement to the Australian Securities Exchange.
“The area has been a focus of past rare metal exploration but its lithium potential has been ignored.
“This acquisition continues LIT’s long-term strategy to procure alternative lithium sources to feed a Western Australian based lithium chemical industry.
“We recognise the variability in ore types and chemistry present an immense challenge but the company’s research will create the most effective union of processing technology and ore types.”