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Hertz Lithium (CSE:HZ) advances its hard-rock lithium asset in Arizona with its flagship Lucky Mica lithium property that has historical sampling results indicating lithium concentrations up to 2,450 parts per million (ppm). Hertz Lithium has completed initial exploration and current estimates indicate the potential for the asset to become a leader in the North American lithium market.
Close to the Lucky Mica is the Patriot Lithium’s Wickenburg (ASX:PAT) project, which has already released promising exploration results, with an evaluation of ASD$24.9 million. Three pegmatites have been mapped to date at the Wickenburg’s Dove pegmatite that exhibit potential for spodumene mineralization, with surface expression that can be traced along strike for at least ~440 meters at the Dove West pegmatite and ~430 meters at the Dove East pegmatites. These results reflect the potential for Hertz’s Lucky Mica project.
Hard-rock lithium varies from the commonly found lithium brine type of deposits and is more economical to extract as there is no need for the time-intensive evaporation process. Hard-rock deposits are characterized by pegmatite intrusions amenable to open-pit mining. Once mined, refining involves crushing, milling and flotation cells to separate ore.
Company Highlights
- Hertz Lithium is an exploration and development mining company currently exploring its prospective Arizona hard-rock lithium asset.
- The Arizona Pegmatite Belt Arizona Pegmatite Belt is a 400-kilometer-long and 50- to 130-kilometer-wide basement, with pegmatites that occur in igneous and metamorphic rocks of Precambrian age, largely covered by sedimentary and volcanic rocks of Tertiary and Quaternary age.
- The flagship Lucky Mica lithium project has historical sampling results with significant lithium concentrations reaching up to 2,450 ppm.
- The company is awaiting assays from initial exploration campaigns to move towards exploratory drilling.
- The lithium market is expected to grow significantly in the coming years, driven by the explosive growth of the EV market. EV sales rose by 55 percent between 2021 and 2022.
- A nearby Arizona lithium project operated by Patriot Lithium is indicative of the possible deposits for the Lucky Mica asset.
- An experienced team leads the company toward exploring and developing its highly prospective asset.
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HMW Project Update
- In situ lithium mining inventory continues to build with over 2,800t LCE accumulating in ponds.
- Overall project completion is close to 40%.
- Project construction continues to advance at a pace commensurate with preserving cash. First production from HMW is now targeted for H2 2025.
- Average brine flow rate, well lithium grade and evaporation rates are in line with or better than those utilised in the Phase 1 Feasibility Study.
- Pond inventory management system in place to protect inventory and optimise evaporation process.
- Offtake partners shortlisted with Galan progressing towards a definitive sales agreement and associated funding package.
First 3 ponds completed, filled and evaporating
Overall completion of the HMW Phase 1 project now sits at approximately 40% with the ponds system at 60% capacity. The designed ponds system can allow an inventory, until H2 2025, of up to 10,000tpa LCE without the need for processing. Approximately 750,000 m2 of evaporation area has now been built, currently housing 2,800t LCE contained inventory. This current evaporation area is sufficient to produce a lithium chloride volume of approximately 3.0 ktpa LCE. The key processing parameters, including brine well average flow rates, lithium grades and evaporation rates are all aligned with the Phase 1 DFS. Due to the slower pace of construction activities, first production from HMW is now expected to be within H2 2025.
As previously announced, the HMW project was separated into four production phases. The initial Phase 1 Definitive Feasibility Study (DFS) focused on the production of 5.4ktpa LCE of a lithium chloride concentrate by H2 2025, as governed by the approved production permits. The Phase 2 DFS targets 21ktpa LCE of a lithium chloride concentrate in 2026, followed by Phase 3 production of 40ktpa LCE by 2028 and finally a Phase 4 production target of 60ktpa LCE by 2030. Phase 4 will include lithium brine sourced from both HMW and Galan’s other 100% owned project in Argentina, Candelas. The positive Phase 2 DFS results were announced on 3 October 2023 (https://wcsecure.weblink.com.au/pdf/GLN/02720109.pdf).
HMW Project looking south
Galan’s Managing Director, Juan Pablo (JP) Vargas de la Vega, commented:
“We are very proud of the solid progress made to date especially in light of current market conditions. During this time, the Board also made the prudent decision to strategically slow construction activities so as to preserve our cash.
Our current in situ inventory of 2,800t LCE has been the first step of our production pathway. Our inventory will continue to increase as we have a low energy cost operation that only requires brine pumps to operate. As a result, once Galan finalises sales and funding arrangements, which are progressing well, the Company will be in a strong position to produce a competitive low-cost lithium product.
It should also be noted that we have received strong international market interest in our HMW lithium concentrate. In our view, this evidence indicates that the current lithium pricing environment and market oversupply is not expected to be a long term trend.”
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Strategic Project Review Commenced: Gold and Copper Potential
HIGHLIGHTS
- Board and management refresh is complete with new Managing Director, Chair and Exploration Manager now in place
- First phase field work at Abbotts North, Montague and Yalgoo lithium projects completed
- Strategic review of the current portfolio underway to define follow up exploration targets
- Additional gold and copper potential within the Abbotts North, Yalgoo, Boodanoo and Mount Magnet North projects being assessed
- The Company supported by Deutsche Rohstoff AG continues to seek new opportunities to strengthen the portfolio and generate shareholder value
The focus of the review is to identify follow up exploration targets as well as complementary exploration potential outside of lithium to prioritise expenditures in the current subdued lithium market.
Whilst lithium remains a core focus of the Company, there remains considerable potential for gold and copper mineralisation within the existing exploration portfolio.
The Company and new management are strictly committed to maintaining a disciplined investment and financial returns framework for testing its exploration projects as well as identifying new project opportunities.
Managing Director Jason Froud commented:
“While we currently review our existing lithium portfolio for the next round of exploration work, early indications from our internal review of the Company’s tenure are also highly encouraging for gold and potentially copper mineralisation. This allows us to maintain a parallel focus on multiple commodities over our existing projects whilst the lithium market remains weak. The Company’s long-term view of lithium remains positive and we continue seeking further transactional opportunities to strengthen our portfolio and generate shareholder value going forward.”
Following the completion of the first phase of field work at its main Abbotts North, Yalgoo and Montague projects, the Company is currently analysing all data including historic intercepts of pegmatites for interpretation and follow up lithium exploration targeting. As part of this, a strategic review of the current portfolio commenced to focus future exploration work on the most prospective areas and commodities (see Table 1 and Figure 1).
All recently collected data includes multielement analysis that allow for the review of other commodities at projects where the Company holds all mineral rights. This applies to Abbotts North, Yalgoo (except for REE), Mt Magnet North and Boodanoo. As part of the strategic review, Premier1 is focussing on the identification of gold and copper prospectivity within these projects. The gold and copper potential is considered to be a parallel work stream to the Company’s lithium exploration. The Company remains optimistic on the long-term outlook for lithium but expects a ‘U’ shaped recovery.
Table 1: Summary of projects within the Premier1 portfolio
Yalgoo Project - Gold Occurrences within the Yalgoo-Singleton Greenstone Belt
At the Yalgoo project, a number of gold occurrences are known within the Yalgoo-Singleton Greenstone Belt. Within the Premier1 tenure, there are known gold occurrences at the Wadgingarra, Cumberland Well and Federal prospects among others (Figure 2). Between 1985 and 1989, the Wadgingarra area was explored by Mount Kersey Mining who completed a 73 hole (2,971 m) RC drilling program around the historical gold workings. The intersected gold mineralisation is associated with narrow, subvertical quartz veins which were exploited by late 19th and early 20th century workings. This work resulted in the reporting of a historical resource estimate extending to only 40m below surface1. Only minor follow- up exploration has been completed since this program concluded and further gold potential exists at Bridge Well, Bourkes United and Bridge Well to the south.
The Wadgingarra prospect area is located approximately 12km south and along strike from Spartan Resources’ Yalgoo Gold Project (5.3Mt at 1.45g/t Au2). In this context, the Yalgoo project warrants an additional detailed review of its gold potential which will be completed over the coming quarter.
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This article includes content from Premier1 Lithium, 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.
