A West Australian-based lithium explorer looks well-positioned to capture significant upside when the alkali metal’s market moves into its anticipated recovery mode.
In 2023, Global Lithium Resources Ltd (ASX:GL1) spent a great deal of its corporate time sizing up its wholly-owned outcropping Manna pegmatite project in its home state of WA, completing a large-scale 60,000 metre reverse circulation and diamond drilling campaign which covered infill and extensional targets.
The junior also started metallurgical and geotechnical programs that have since carried over into 2024.
Located around 100 kilometres east of Kalgoorlie-Boulder in the state’s Goldfields, Manna currently enjoys an indicated and inferred mineral resource of 36 million tonnes at 1.13 per cent lithium oxide.
In terms of last year’s field program, the Manna Central resource area continued to demonstrate continuity and return high grades, while significant intercepts were encountered outside of the current resource (with the best assay to date being 26m at 1.53 per cent lithium oxide).
Moreover, a new zone of lithium mineralisation was identified undercover south-west of Manna Central.
Here, pegmatites had returned grades of over 1 per cent lithium covering a 3.2km of strike length, with drill holes going down to a 450 metre vertical depth.
All up, the company has 700km² of Goldfields’ tenements.
During Vertical Events’ recent RIU Explorers Conference in Fremantle, GL1’s managing director Ron Mitchell said infill drilling at the project’s central pegmatite zone at 40 by 40m spacings would support mine planning and a mineral resource update.
Here, the rig returned lithium oxide intercepts of 26m at 1.52 per cent (from 249m), 15m at 1.58 per cent (251m), 13m at 1.34 per cent (75m), 10m at 1.35 per cent (163m) and 10m at 1.49 per cent (125m).
Meanwhile, field activities at the Manna north-eastern extension had delivered a number of promising lithium oxide results, including 10m at 1.61 per cent (from 317m), 8m at 1.19 per cent (378m), 10m at 1.14 per cent (417m), 22m at 1.03 per cent (461m) and 15m at 1.11 per cent (468m).
This, according to the junior, confirmed shallow extensions of mineralisation along strike to the north-east.
Mitchel told RIU delegates that a definitive feasibility study (DFS) and related metallurgical tests were “well advanced”. So far, with the help of dense media separation and “rougher” flotation, “super high recoveries” of 95 per cent or more were achieved.
Furthermore, step out exploration had identified more pegmatite mineralisation in the new Manna south zone, with lithium oxide intersections including 4m at 0.64 per cent (from 137m), 6m at 0.79 per cent (146m), 3m at 1.05 per cent (155m), 6m at 0.93 per cent (161m) and 11m at 0.64 per cent (173m), thus providing the project with some exciting upside.
As it stands, GT1 has started an underground study for the Manna central zone and now expects the project’s DFS to be completed by the end of 2024.
Aside from providing an update of the mineral resource based on drilling to date and a detailed mine schedule, this due diligence will lay out the numbers for expected operating and capital costs.
So far GT1 has completed all flora and fauna surveys (with no significant impacts identified).
There are also no culturally significant sites. In this regard, according to the company, native negotiations are well advanced.
In addition, a mining lease application has been lodged with the WA Government (the junior now expects to have this in place by the end of the June quarter), the proposed operation’s layout is finalised and developments are underway for a closure plan.
Mitchell said he was confident there would be a market rebound for lithium, for which GT1 would be “in a great position”.
“I’ve been in the sector for 14 years – this is the third lithium cycle I’ve been through, so I know exactly how they work, and when they rebound and how they rebound, he told RIU delegates.
“This one is quite different to the previous cycles.”
GT1’s second lithium project ‒ Marble Bar – exhibits spodumene-bearing pegmatite intrusives within the project area that are similar geologically to nearby lithium ore bodies.
Situated 150km south-east of Port Hedland and 15km north-east of Marble Bar in WA’s Pilbara, the Archer deposit so far has a JORC-compliant 2012 mineral resource of 18Mt at 1 per cent lithium oxide.
Mitchel said the two projects would result in a resource of 54Mt, meaning there would be “traditional growth going forward” and development optionality.
Global Lithium listed on the ASX in May, 2021.