THE BOURSE WHISPERER: Lithium Australia (ASX: LIT) has been granted Exploration Licence 70/4825 in the Donnelly River area of Western Australia.
Lithium Australia said the granting of the Licence complemented the recent grant of Exploration Licence 70/4824.
The Donnelly River project (EL 70/4824, EL 70/4825 and ELA70/4823) is located in the far southwest of Western Australia, immediately to the north and northwest of the regional town of Manjimup.
The Donnelly River area has a long history of small scale graphite mining dating back to 1904 with graphite mined from two locations at various times between 1904 and 1943.
According to lithium Australia, exploration in the area during the 1980s yielded grades of up to 30 per cent.
The company considers the Donnelly River project to cover favourable host lithology being gneisses of predominantly sedimentary origin.
LIT cited public domain geophysical surveys, which it said shows a number of conductive units within the project area which may represent graphitic horizons.
The company believes these may represent ‘walk up’ drill targets and will be subsequently conducting first pass exploration aimed at assembling a digital dataset of all work carried out in the immediate area of the tenements.
The ultimate aim would be to extend VTEM geophysical coverage to all three licence areas.
In May 2016, LIT advised divestment of its graphite assets to Graphite Australia, which is currently a wholly-owned subsidiary of the comapny.
Lithium Australia flagged its intentions to extend a priority entitlement in a proposed float of Graphite Australia.
This anticipated IPO is currently expected early next year.
“Graphite Australia NL is well advanced in preparing its significant graphite portfolio for public listing,” Lithium Australia managing director Adrian Griffin said in the company’s announcement to the Australian Securities Exchange.
“We are very cognizant of the fact that graphite is a dynamic industry and we need exceptional personnel to run the business.
“The recent appointment of Tom Revy to head Graphite Australia is a great advantage to Graphite Australia NL and will prove to be a great advantage for the shareholders of the parent company, Lithium Australia.
“Tom’s influence and experience in project development is shaping the way we look at graphite projects, as we assess opportunities to strengthen the asset base.”