- Lithium Australia (LIT) has formed a strategic alliance with Australian Vanadium (AVL) and Mercator Metals to explore the Coates Mafic Intrusive Complex in WA
- Each of these companies hold tenements that cover a combined 59 square kilometres to make up the Coates Project
- Strategically, the project lies just 29 kilometres from Chalice Gold Mines’ Julimar discovery, which has caught the eye of many junior explorers
- The companies will jointly collect historical data, conduct sampling, geological mapping, and surveys to uncover mineralisation at Coates
- Lithium Australia’s shares are up a slight 4.08 per cent and trading for 5.1 cents each while AVL has enjoyed a further boost of 10 per cent to trade for 1.1 cents each at market close
Lithium Australia (LIT) has formed a strategic alliance with Australian Vanadium (AVL) and Mercator Metals to explore the Coates Mafic Intrusive Complex.
Each of these companies hold contiguous tenements that collectively cover 59 square kilometres. These tenements make up the Coates Mafic Intrusive Complex, which lies 55 kilometres east-northeast of Perth, Western Australia.
Like many other miners, the strategic alliance partners have become encouraged to mine the region ever since Chalice Gold Mines’ significant discoveries of nickel-copper-platinum group element (Ni-Cu-PGE) mineralisation at its nearby Julimar Project.
Platinum Group Elements are among the rarest metals on earth and include ruthenium, rhodium, palladium, osmium, iridium and platinum.
The Julimar Project, which hosts the mineralisation, sits 29 kilometres north-northwest of the Coates Project and contains similar geological characteristics as Coates.
“Chalice’s recent discovery of significant Ni-Cu-PGE mineralisation at the Julimar project highlights the potential for additional discoveries in similar geological environments, and the Coates Mafic Intrusion, being so close, provides a tremendous opportunity,” Lithium Australia Managing Director Adrian Griffin said.
At this stage, the parties consider that exploration and, perhaps eventual mining activities, will have joint benefits A joint sale may also be considered.
In terms of expenditure, each party will generally be responsible for its own costs.
Furthermore, this transaction will not lead to any disposition or acquisition of any assets of Lithium Australia, and in any event does not relate to a substantial asset of the company.
Exploration at the Coates Project will commence shortly with compilation and data-sharing of historical information to help target potential areas of nickel-copper-PGE mineralisation.
Following this initial phase, a laterite-sampling and geological-mapping field program will be completed to develop an up-to-date geochemical and geological map.
Currently, the companies are evaluating the use of ground electromagnetic (EM) geophysical surveys to uncover any sulphide-rich horizons at the Coates project before any drilling activities begin. These activities are expected to commence in the September quarter.
Lithium Australia’s shares are up a slight 4.08 per cent and trading for 5.1 cents each at 3:57 pm AEST.
Australian Vanadium has also seen a rise in its share price with a 10 per cent boost to trade for 1.1 cent per share at market close.