Pilbara Resources upgrades Pilgangoora lithium Resource
THE DRILL SERGEANT: Pilbara Minerals (ASX: PLS) announced a major Resource upgrade of the company’s 100 per cent-owned Pilgangoora lithium-tantalum project, located in the Pilbara region of Western Australia.
The company said the upgrade has resulted in the value of the project’s lithium content increasing nearly threefold.
The project now stands with an Indicated and Inferred Resources of 52.2 million tonnes at 1.28 per cent Li2O (spodumene) containing 668,000 tonnes of lithium oxide with 32.9 million tonnes grading 0.022 per cent Ta2O5 (Tantalum) containing 15.7 million pounds of Ta2O5;
Within the total Mineral Resource of 52.2 million tonnes, and at a cut-off of one per cent Li2O, the Inferred and Indicated Lithium Resource amounts to 40.7 million tonnes at 1.43 per cent Li2O containing 581,000 tonnes of lithium oxide.
The company indicated it has already commenced its next phase of resource extension drilling at Pilgangoora where it is focusing on the southern domains and the Monster prospects, which lie outside of the currently defined Mineral Resource.
Pilbara anticipates the drilling in these zones to result in further increases in the Resource inventory.
The company has commenced a Feasibility Study as part of a strategy to fast-track development of the project to take advantage of the increasing demand for quality spodumene concentrate to feed the growing lithium battery market.
“This represents the culmination of a highly successful resource in-fill and extensional drilling program this year which has clearly demonstrated the world-class scale, grade and potential of the Pilgangoora project,” Pilbara Minerals executive director Neil Biddle said in the company’s announcement to the Australian Securities Exchange.
“This is a significant advance on the resource updates announced earlier this year and, importantly have seen the high-value lithium content of the resource jump significantly.
“Pilgangoora is now confirmed as the world’s second largest lithium deposit, and one of the highest grade globally – with the added advantage of having a significant tantalite component which will help to reduce operating costs by providing a valuable by-product credit.
“We are also encouraged by the results of the drilling which is continuing at the moment but which couldn’t be included in this resource upgrade.
“This work has clearly demonstrated that Pilgangoora will continue to grow significantly, underpinning a greatly expanded overall Exploration Target for the deposit.
“We now have sufficient confidence in the scale and quality of the deposit to press ahead with a Feasibility Study.
“Key elements of this work are already well underway and we look forward to providing further information in the weeks ahead as we put the foot down to get this project into development as quickly as possible.
“The very high level of interest we have seen from potential off-take partners gives us great confidence that Pilgangoora is the right project at the right time for the lithium market and we are looking forward to unlocking the enormous value of this asset for our shareholders.”
Website: www.pilbaraminerals.com.au