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Accelerate Resources Limited (ASX: AX8) ("AX8" or the “Company") is pleased to announce the expansion of its lithium exploration project footprint in the East Pilbara region of WA, with the recent application for four new tenements (E45/6416, E45/6604, E45/6615 and E45/6634) covering an additional 395 km2 in an area proven to host lithium deposits. Two of Accelerate’s tenement applications (E45/6416 and E45/6634) are subject to competing applications by other companies, with final ownership to be decided by ballot.
- AX8 has expanded its 100%-owned East Pilbara Lithium Project adjacent to Global Lithium Resources’ (ASX:GL1) Archer deposit (18 Mt @ 1.0% LiO2), with four new tenement applications.
- AX8 now has ~800 km2 of lithium prospective tenure under application (seven licences) in WA’s Pilbara region. Two applications are subject to a ballot.
- AX8 has identified targets across the new tenements using the same exploration model applied by GL1 at the nearby Archer Deposit.
- Initial mapping and rock chip sampling of pegmatites to evaluate new targets has recently been completed with results pending.
Figure 1: AX8 East Pilbara Lithium Project location
AX8 Managing Director Yaxi Zhan commented:
"Accelerate's East Pilbara Lithium project, strategically positioned just 30 km southeast of Global Lithium Resources' (ASX:GL1) Archer deposit, holds promise for delivering positive lithium exploration results. Our recent application for four new tenement applications has expanded our exploration project area to over 800 km2, unlocking geological potential akin to the large Archer Lithium Deposit.
Utilising the same proven exploration model employed for the Archer Deposit, we have successfully identified potential lithium targets in these new areas which is an exciting development. Our initial ground-based mapping and sampling program targeting potential lithium, tin and tantalite mineralisation has been completed, and we eagerly await the imminent results in the coming weeks."
East Pilbara Lithium Project
Accelerate's East Pilbara Lithium Project (Figure1) is strategically situated within a region of active lithium exploration and discovery, encompassing the following prominent deposits: Global Lithium Resources' Archer deposit (ASX:GL1), Tabba Tabba Lithium Project (ASX:WC8), Pilgangoora Lithium Project (ASX:PLS) known for its large-scale lithium mine, and Wodgina Lithium Project (ASX:MIN), which demonstrates the significant lithium prospectivity of the area (Figure 1).
Two of the Company’s new tenement applications are located within the sedimentary-basalt rim adjacent to a large granite pluton (informally known as the Wongawobbin Pluton), which contains several granite suites (such as the Cleland Supersuite granite) located within a swarm of north oriented faults. Satellite image interpretation has identified several zones of quartzose felsic rocks that are prospective for lithium bearing pegmatites (see Figure 2).
These intrusive suites contain various granitic phases, including tonalite, monzogranite and granodiorite compositions. Within the Pilbara Craton, monzogranites are frequently associated with lithium mineralisation. For example, the Wongawobbin Pluton contains similar granite types and granite supersuites as the Moolyella Pluton, immediately east of Marble Bar, which is known for its associated Tin-Tantalum-Lithium mineralisation (Figure 3).
Figure 2: E45/6604 and E45/6615 Prospects
The Archer Lithium Deposit (ASX:GL1) is located on the western edge of the Moolyella Pluton within a rim of interleaved basalt, gneiss and granite material, which is associated with a NNE trending quartz-filled, concentric fault system. The GSWA has identified the Bishop Creek Monzogranite, which is part of the Cleland Supersuite, as being a potential lithium source for the Archer Deposit.
Accelerate’s new tenement applications cover a broadly analogous position around the Wongawobbin Pluton, similar to that of the Archer Lithium Deposit and the Moolyella Pluton (Figure 3).
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This article includes content from Accelerate Resources Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Infill Drilling Completed at Butcherbird Targeting Reserve Extension to Support Expansion
Current reserves are based around mineral resources within granted mining lease M52/1074, of which less than half has been drilled to a sufficient density to meet the requirements for measured and indicated classifications. The balance is classified as inferred. The additional drilling will provide infill data to better define and potentially convert these areas to indicated or measured categories to support the re-estimation of mine reserves. The increase in the “reserve tail” will support project financing activities with NAIF and other potential financiers who are currently undertaking project expansion due diligence2.
HIGHLIGHTS
- 207 percussion drill holes have been completed for 6,202m targeting infill of existing inferred resources.
- All samples have been dispatched to Bureau Veritas for assay with results pending.
Figure 1: Aerial photograph of the resource infill drilling rig with support vehicles and personnel.
The Project hosts a global resource of over 260Mt of manganese ore3 however the current reserves are limited to the areas which have been drilled out to measured and indicated classifications which are required as the basis for a statement of reserves. The current drilling programme was designed to infill existing inferred resources to a sufficient data density, based on variographic analysis, to convert the inferred resources within granted mining lease M52/1074 to indicated and/or measured.
The additional drilling information, combined with historical data, will be used to recalculate the resource base to support a recalculation of the proved and probable reserves to support project financing activities for the Butcherbird Expansion Project by increasing the “reserve tail”. Samples have been submitted for assay with results pending.
Figure 2: Drillhole collar location plan summarising existing and proposed drillhole collar locations.
Element 25 Managing Director Justin Brown said:
“This drilling programme will allow the global resource at Butcherbird to be recalculated with a higher degree of certainty which is expected to result in a signification conversion of inferred resources to measured and indicated classifications to increase the reserve tail in support of the planned ramp up to 1.1Mt production rates.”
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This article includes content from Element 25 Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Element 25 Extends Share Purchase Plan
- Extension of Element 25 Share Purchase Plan with revised closing date, Wednesday, 26 June 2024 at 5:00pm AWST.
- Funds raised from the Share Purchase Plan will enable the Company to progress its current prime projects at the Butcherbird mine site (located in the southern Pilbara region of Western Australia), as part of the Butcherbird Stage 2 Expansion Project, as well as continuing to support the high purity manganese sulphate monohydrate (HPMSM) project to be built in Louisiana, USA in partnership with General Motors LLC and Stellantis NV.
- Shareholders can request an electronic copy of their personalised Share Purchase Plan form via Element 25’s share registry, Automic Group.
Element 25 has been made aware by shareholders that postal deliveries relating to the SPP have taken longer than anticipated. The extension of the SPP will allow eligible shareholders additional time to consider their position and provide sufficient time to submit their applications and payment.
Under the SPP, the Company will offer eligible shareholders, who were registered shareholders as at 5:00pm (AWST) on Monday, 20 May 2024 (Record Date) the opportunity to apply for up to $30,000 of new fully paid ordinary shares (New Shares). New Shares will be issued at $0.27 per share, equivalent to a 14% discount to the volume weighted average price (VWAP) of Element 25 shares over the last five trading days prior to the announcement of the SPP1.
A revised indicative timetable with the new closing date for the SPP is as follows:
REVISED SPP TIMETABLE
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This article includes content from Element 25 Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
E25 Investigates Butcherbird Restart Options Amid Record High Manganese Ore Prices
HIGHLIGHTS
- Manganese ore prices rise to four-year highs to U$8.30/dmtu for 44% cif Tianjin, China1.
- E25 operations team and Board investigating opportunities to process ROM and low-grade stockpiles at Butcherbird.
- If operationally feasible, ore production at current prices presents an opportunity to generate short-term cash flow.
GEMCO’s Groote Eylandt Mine typically produces more than 6M tonnes of high-grade manganese ore a year, and damage to the mine’s haul road and ship loading facilities from Tropical Cyclone Megan in March 2024 has resulted in a forecast supply disruption of up to twelve months. GEMCO is currently targeting a production restart in Q3 2025.2
Figure 1: Manganese ore index – Yuan/dmtu Tianjin Port1. Butcherbird Expansion Feasibility Study parameters also shown3.
The loss of GEMCO supply coupled with political instability in South Africa has resulted in a significant and rapid increase in manganese ore prices due to increased competition for available supply. This presents an opportunity to potentially sell stockpiles that are of a lower grade, preventing their previous sale at lower prices but which may be profitable to ship now.
Additionally, ROM stockpiles that have been mined but not yet processed are available at site. The cost structure of a restart is not currently defined, however E25’s Board recognises the potential opportunity of selling existing product stockpiles and/or recommencing the processing of ROM stockpiles at Butcherbird to produce material for sale at current elevated prices. If viable, these activities will occur in parallel with and will not impact the expansion plans for the Butcherbird Project. E25 suspended Butcherbird production in early 2024 during a period of depressed ore prices while readying for an upgrade of facilities to achieve a nominal 1.1Mpta manganese concentrate production, as outlined in a Feasibility Study completed on January 20243.
The expansion of Butcherbird production aligns with E25’s strategy to produce high-purity manganese sulphate monohydrate (HPMSM) at a facility planned to be built in Louisiana, USA, in partnership with global automakers General Motors LLC and Stellantis NV4.
Element 25 Managing Director Justin Brown said:
“A potential restart of Butcherbird’s processing operations at these increased manganese ore prices on a de-risked basis may be an ideal opportunity to monetise existing stockpiles and generate short-term cashflow. E25 looks forward to updating the market further as these investigations are completed and we will continue to monitor ore markets in the meantime to optimise any potential opportunities that may arise.”
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This article includes content from Element 25 Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
