THE BOURSE WHISPERER: Lithium Australia (ASX: LIT) has been granted approval by Western Australia’s Department of Mines and Petroleum for initial preparatory site works on the company’s wholly-owned Ravensthorpe project, west of Esperance in the State’s south.
The company said the approval to clear native vegetation is the forerunner to awaited approvals for its proposed maiden drill program for Ravensthorpe.
The exploration licence is situated 10 kilometres west of the Mt Cattlin lithium mine and extends along 20km of prospective strike.
Lithium Australia has thirty-five drill holes planned within the first target zone which is located 18km to the south-west of Mt Cattlin and includes the Horseshoe prospect.
LIT claims to have had some exploration success in the region, focused on lithium bearing pegmatite swarms extending to the southwest of the neighbouring development that is the subject of a $700 million merger between Galaxy Resources (ASX: GXY) and General Mining Corporation (ASX: GMM).
The company said the Ravensthorpe project hosts abundant lithium pegmatites, which like the nearby Mt Cattlin, contain both lithium mica and spodumene.
“The abundance of lithium pegmatites at Ravensthorpe, and nearby lithium production, clearly places Lithium Australia at the focus of one of the most promising lithium centres in the world,” Lithium Australia managing director Adrian Griffin said in the company’s announcement to the Australian Securities Exchange.
“The recent corporate activity in this commodity is a positive testament to the value and upside of the regional lithium potential and the new approvals contribute to our ability to capitalise on the opportunities available in the area.”
Lithium Australia has also had bulk sampling permits granted to remove up to 5,000 tonnes of material from the Ravensthorpe exploration licence to be used for bulk sampling and metallurgical test programs employing the company’s 100 per cent-owned Sileach process.
This process has the capability of recovering lithium from all lithium silicates including spodumene.