Accelerate Resources Limited - Quarterly Activity Report for June 2024
AX8 (AX8) Share Update July 2024 Monday 29th
Accelerate Resources Reports Significant Lithium Discoveries and New Board Appointment
Accelerate Resources Limited (ASX: AX8) has released its Quarterly Activity Report for the period ending 30 June 2024, highlighting significant lithium discoveries at the Prinsep Lithium Project and the appointment of a new board member.
Instant Summary:
- First drilling at Prinsep reveals significant lithium system with intercepts up to 1.28% Li2O.
- New geochemical results expand the lithium footprint of the Karratha Project.
- Preparation underway for further drilling at high-grade targets within the Prinsep lithium system.
- Mark Thompson appointed to the Board of Accelerate Resources.
- Company secures $707k Junior Minerals Exploration Incentive (JMEI) Tax Credits for shareholders.
- Approximately $1.95 million in cash at the end of June Quarter.
Prinsep Lithium Project
The Prinsep Lithium Project, located 15km south of Karratha and 35km west of SH Mining's Andover Lithium Project, is part of Accelerate Resources' 100% owned Karratha Lithium Project. This project covers an area of 85km² within the emerging Karratha – Roebourne hard-rock lithium belt.
During the June 2024 quarter, the company completed its phase 1 drilling program at Prinsep. This program aimed to test the down-dip potential of outcropping mineralized pegmatite and identify new subsurface pegmatites. A total of 38 Reverse Circulation (RC) holes were drilled, covering 4,224 meters.
Phase 1 Program and Results
The drilling defined an extensive subsurface pegmatite system dipping between 60 to 45 degrees to the south. Significant lithium geochemical halos were found, with notable basalt-hosted intercepts including 63m @ 0.24% Li2O and 46m @ 0.33% Li2O. Pegmatite-hosted intercepts included 4m @ 1.28% Li2O and 10m @ 0.70% Li2O.
Geochemical Expansion
New geochemical results from an ultrafine fraction soil program revealed untested lithium and caesium zones at the Prinsep, Sholl East, and Roebourne South projects. The Prinsep surface mineralized zone expanded to 1.4km x 1.4km, with significant anomalies extending into the mafic sequence north of the drilled pegmatites.
Next Steps
Mineral characterization studies and additional structural mapping are being conducted to prepare for phase 2 diamond drilling. Further exploration will target new zones outside the immediate Prinsep area, including the Mt Sholl East and Roebourne South prospects.
Board Appointment
Mark Thompson, founder and Managing Director of Talga Group Ltd, has been appointed to the board. Thompson brings over 30 years of experience in the mineral industry and is known for his work in battery material processing and development.
Financial Position
The company secured $707k in JMEI Tax Credits for shareholders and ended the quarter with approximately $1.95 million in cash. Exploration and project evaluation expenses totaled $352,000 for the quarter.
The discovery of significant lithium deposits at the Prinsep Project is a positive development for Accelerate Resources, potentially boosting the company's stock value. The appointment of Mark Thompson to the board adds significant industry expertise, which could enhance investor confidence. The secured JMEI Tax Credits provide financial benefits to shareholders, further strengthening the company's position.
Investor Reaction:
Investors and analysts have responded positively to the lithium discoveries and the new board appointment. The expansion of the Karratha Project's lithium footprint is seen as a promising development, and Thompson's appointment is expected to bring valuable insights and leadership to the company.
Conclusion:
Accelerate Resources' recent activities, including significant lithium discoveries and strategic board appointments, position the company for potential growth. Investors should keep an eye on the upcoming phase 2 drilling results and the company's continued exploration efforts. The financial incentives and strong cash position further bolster the company's outlook.