THE BOURSE WHISPERER: Lithium Australia (ASX: LIT) has made its move into the South Australian lithium exploration and development sector with the lodgement of an application for ground prospective for lithium on Kangaroo Island.
Lithium Australia announced the application resulted from an ongoing strategy by the company to continue to look Australia-wide to add to its strong domestic lithium holdings throughout Western Australia, Northern Territory, and Queensland.
The company’s national research identified prospective geological setting on Kangaroo Island, leading to Exploration Licence Application 2017/00005, which covers what it considers to be the most favourable ground on the eastern side of Kangaroo Island.
The application area is located 100 kilometres southwest of Adelaide and covers an area of 27 square kilometres.
Lithium Australia’s geological focus is on the pegmatite intrusives into the Tapanappa Formation of the Kanmantoo Group where the pegmatite is predominantly feldspar-quartz-muscovite with varying amounts of topaz, tourmaline varieties elbaite, rubellite and indicolite, graphite, citrine, and apatite.
The Geological Survey of South Australia has noted lepidolite in the area.
Small Mining Claim 4400, which covers the abandoned Dudley Mine area; a collection of shallow pits and shafts in the pegmatite, all lie within the ELA.
Lithium Australia explained the Dudley Mine was worked during the 1890s and early 1900s for gem tourmaline, ceramic-grade feldspar, silica, and kaolin for brickmaking.
Previous exploration has centred on assessing the pegmatites for kaolin and gem quality tourmaline, with no exploration for lithium being recorded.
“Our broadened nationwide search is designed to de-risk the company’s lithium exploration portfolio by providing exposure to multiple lithium opportunities across multiple state jurisdictions,” Lithium Australia managing director Adrian Griffin said in the company’s announcement to the Australian Securities Exchange.
“The area we have identified on Kangaroo Island, South Australia, shows the hallmarks we are looking for.
“It is the right geological environment, has past identification of the lithium mineral suite and has some historic pegmatite mining.
“Like so many other areas across Australia, lithium has never been an exploration or production target on Kangaroo Island.
“Geographic diversity strengthens our portfolio and provides the opportunity to match the best available processing technology with the mineralisation types encountered.
“The South Australia campaign adds to Lithium Australia’s strong and expanding project suite and technological alliances.”