Highlights:
- First pass soil sampling assay results confirm strong lithium and tantalum potential at flagship Upper Coondina in WA
- High-grade soil samples including 670 ppm lithium and 103 ppm tantalum
- Field mapping has previously confirmed a pegmatite corridor with strong lithium anomalism
- Pre-drilling exploration programme has confirmed multiple high quality drilling targets for drill testing in Q4 2022
- Initial priority drill target will be the Chola Prospect – a pegmatite corridor measuring approx. 4.0 km x 2.0 km
- Upper Coondina has the potential to be part of the same system that hosts the major lithium discovery announced by Global Lithium (ASX: GL1) and similar geological setting as Pilbara minerals (ASX: PLS)
- Heritage survey report and POW approval received
Critical metals exploration and development company MetalsGrove Mining Limited (ASX: MGA), (“MetalsGrove” “MGA” or the “Company”), is pleased to announce that a recently completed pre-drilling exploration programme has confirmed multiple pegmatite corridor and identified potential drilling targets at the Company’s Upper Coondina Lithium Project in Western Australia.
The recently completed programme comprised soil sampling, airborne survey and surface field mapping which revealed a corridor containing multiple pegmatites which are coincident with the source area and with surface geochemistry.
Encouraging soil sampling assays including Li2O 670 ppm and Ta 103 ppm have been returned. Multiple outcropping pegmatite dykes occurring in swarms, with pegmatite dykes strike approximately 8.0 km x 4.0 km.
Initial observations suggest Upper Coondina has two generations of pegmatite – G1 and G2, which host the lithium mineralisation found within the Pilbara lithium field.
MGA also believes Upper Coondina may be part of the same system that hosts the major lithium discovery announced by Global Lithium (ASX: GL1) and similar geological setting as Pilbara minerals (ASX: PLS) north of MGA’s ground.
Commenting on the encouraging soil sample assays from Upper Coondina, MetalsGrove’s Managing Director, Sean Sivasamy said:
“We are delighted with the assay results from our pre-drilling soil sampling which has confirmed the high-grade lithium potential of Upper Coondina. Our technical team has also used this data to refine our priority drill targets starting with the Chola Prospect which is shaping up to be an exciting structure.
All necessary approvals have now been finalised and we are aiming to have the drill rig spinning in late November to test this suite of initial targets as we finish the calendar year with momentum.”
Geochemistry confirms drill targets at Upper Coondina
Over 2,500 soil samples were taken from the southern part of the Upper Coondina Chola Prospect. The geochemical responses and surface field mapping identified strong LCT-pegmatite anomalies, which is in an 8km by 4km multiple pegmatite corridor.
First pass soil sampling assay results confirm lithium mineralisation and defining the drilling target within the Chola Prospect pegmatite corridor measuring approximately 4.0 km x 2.0 km.
Chola Prospect – expanding horizon of lithium-bearing pegmatites
Figure 1 shows the location of the Chola Prospect pegmatite outcrop and pegmatite structural corridor at the Upper Coondina Lithium Prospect that were confirmed by soil sampling assays hosting lithium mineralisation and expanding up north and west.
Next steps
Pending soil samples assay results are expected to be received over the coming weeks. These results will allow the Company to define more drilling targets to test the outcropping pegmatites at depth, to confirm their orientation and the extent of any high-grade lithium mineralisation continuing below surface.
Earthworks for the upcoming maiden lithium drill programme are scheduled to commence in mid-November 2022. The start of drilling is scheduled for late November.
Upper Coondina Project Background
The Upper Coondina Project is located approximately halfway between the major mining regional service centres of Port Hedland and Newman – approximately 200 km northwest and 180 km south-southeast of the project, respectively.
The Project comprises a single granted Exploration Licence. The tenement covers an area of approximately 6,363 ha and the maximum distance across the project is about 11 km east–west and 8 km north–south. Nearby lithium mines include Wodgina (MinRes ASX: MIN), Pilbara Minerals (ASX: PLS) and recent lithium developer Global Lithium (ASX: GL1).
Historical Exploration Summary
The Greater Shaw Tin Field has attracted exploration interest since the discovery of tin in 1890. However, most of the exploration and subsequent mining of tin and tantalum has been on the small scale. The Shaw Tin Field, has historically produced more than 6,500 t of tin concentrate.
In 1968, Marble Bar Nickel carried out a rock chip sampling programme covering tenement E45/3699 of the current Hillside CRG (A1714). A 1972 stream sediment sampling programme by Anglo American Services Limited targeting Ni-Cu mineralisation identified a copper anomaly in ultramafic and pillow basalts and another in altered gabbro. Both were subsequently found to be insignificant.
In early 1968, the field was largely abandoned after the shallow deposits were soon exhausted. Towards the end of 1968, a local resident discovered further cassiterite mineralisation in cemented alluvium within a largely concealed tertiary drainage channel. In 1983, CSR Limited explored for economic secondary concentrations of tin and tantalum in the area. Their exploration program included follow-up on radiometric anomalies, stream sediment sampling and geological mapping. No discrete localities of anomalous tin could be identified. CSR Limited identified simple pegmatite veins as the sources of the tin.
No dedicated Li-focused exploration has been carried out within the project area. However, given historical surface geochemical sampling has returned anomalous values up to 253 ppm LiO2, MetalsGrove considers that this untested magnetic anomaly warrants follow-up exploration to determine its source.
The exploration results that are referred to above were included in MetalsGrove’s IPO prospectus dated 13 May 2022 (Prospectus). MetalsGrove is not aware of any new information in respect of these results, and confirms that full details with respect to these results are included in the Prospectus.
About MetalsGrove
MetalsGrove Mining Limited (ASX: MGA) is an Australian-based exploration and development company, focused on the exploration and development of its portfolio of high-quality lithium, rare earth, copper-gold, manganese and base metal projects in Western Australia and the Northern Territory.
MGA is committed to green metal exploration and development to meet the growing demand from the battery storage and renewable energy markets in the transition to a de-carbonised world.
Competent Person Statement – Exploration Strategy
The information in this announcement that relates to exploration strategy has been developed by Sean Sivasamy. All assay results have been complied by Mr Sivasamy who is a member of Australasian Institute of Mining and Metallurgy. Mr Sivasamy is Managing Director and CEO of MetalsGrove Mining Limited.
Mr Sivasamy has sufficient experience which is relevant to the style of mineralisation and exploration processes as reported herein to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’.
Mr Sivasamy consents to the inclusion in this announcement of the information contained herein, in the form and context in which it appears.
Forward looking statements
This announcement may contain certain “forward looking statements” which may not have been based solely on historical facts, but rather may be based on the Company’s current expectations about future events and results. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis.
However, forward looking statements are subject to risks, uncertainties, assumptions, and other factors which could cause actual results to differ materially from future results expressed, projected or implied by such forward looking statements. Such risks include, but are not limited to exploration risk, mineral resource risk, metal price volatility, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, as well as political and operational risks in the countries and states in which we sell our product to, and government regulation and judicial outcomes.
For more detailed discussion of such risks and other factors, see the Company’s Prospectus, as well as the Company’s other filings. Readers should not place undue reliance on forward looking information. The Company does not undertake any obligation to release publicly any revisions to any “forward looking statement” to reflect events or circumstances after the date of this announcement, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.
