Global Lithium's Manna Project Resource Grows by 43% in June 2024
GL1 (GL1) Share Update July 2024 Monday 22nd
Global Lithium Announces 43% Increase in Manna Lithium Resource
Global Lithium Resources Limited (ASX: GL1) has announced a substantial increase in the Mineral Resource Estimate (MRE) for its Manna Lithium Project, positioning it as the second-largest lithium resource in the Kalgoorlie Lithium Province.
Instant Summary:
- Manna Lithium Deposit Mineral Resource Estimate (MRE) increases by 43% to 51.6Mt @ 1.0% Li2O.
- 26% increase in total contained Li2O from 406,000 tonnes to 515,000 tonnes Li2O.
- Contained Lithium Carbonate Equivalent (LCE) of 1,276 Kt.
- 63% increase in Indicated JORC classification to 32.9Mt @ 1.04% Li2O.
- New MRE model to be utilized in the Manna Definitive Feasibility Study (DFS), expected in H2 CY24.
- 6,000m Reverse Circulation (RC) drilling program commenced at the Manna Lithium Project.
Quarterly Report Overview
Global Lithium Resources Limited, a multi-asset West Australian lithium company, has released its quarterly report for the period ending 30 June 2024. The company has achieved significant milestones during this quarter, particularly with the Manna Lithium Project.
The Mineral Resource Estimate (MRE) for the Manna Lithium Project has increased by 43%, reaching 51.6 million tonnes at a grade of 1.0% Li2O. This positions the project as the second-largest lithium resource in the Kalgoorlie Lithium Province. The total contained lithium oxide (Li2O) has also increased by 26%, from 406,000 tonnes to 515,000 tonnes, with a contained Lithium Carbonate Equivalent (LCE) of 1,276 Kt.
Definitive Feasibility Study and Drilling Program
The updated MRE will be incorporated into the Manna Definitive Feasibility Study (DFS), which is expected to be released in the second half of the calendar year 2024. The DFS will include detailed mine scheduling and provide confidence in the underlying resource. Additionally, a 6,000m Reverse Circulation (RC) drilling program has commenced at the Manna Lithium Project, targeting pegmatite extensions southwest along strike from the Manna Resource.
Global Lithium has also been awarded an Exploration Incentive Scheme (EIS) grant by the Western Australian Government for gold-silver-copper drilling at the Marble Bar Lithium Project.
Corporate Developments
There have been significant corporate developments as well. Mr. Geoff Jones has resigned as Non-Executive Chairman, and Mr. Ron Mitchell has been appointed as the Executive Chairman. Dr. Dianmin Chen has been appointed as Executive Director to work closely with the Project Development and Executive teams to complete the Manna DFS in 2024 and work towards a Final Investment Decision (FID) in 2025.
Financial Position
As of 30 June 2024, Global Lithium is well-capitalized with a cash balance of $26.9 million and no debt. The company has incurred approximately $3.5 million in exploration activities for the quarter, primarily related to the Manna Lithium Project.
The 43% increase in the Manna Lithium Resource is a significant development for Global Lithium. This substantial growth in resource size and confidence level is likely to positively impact the company's stock price, as it reinforces the project's potential. The ongoing DFS and drilling programs are expected to further enhance the project's value, making it an attractive investment opportunity. The strategic corporate changes and strong financial position also add to the company's potential for future growth.
Investor Reaction:
Investors and analysts have reacted positively to the announcement. The significant increase in the Manna Lithium Resource has been seen as a strong indicator of the project's potential. Analysts believe that the ongoing DFS and drilling programs will further de-risk the project and provide a clearer path to production. The strategic corporate changes have also been welcomed, with expectations that the new leadership will drive the project towards successful completion.
Conclusion:
Global Lithium's significant increase in the Manna Lithium Resource is a major milestone for the company. Investors should keep an eye on the upcoming DFS and drilling results, as these will provide further insights into the project's potential. With a strong financial position and strategic leadership changes, Global Lithium is well-positioned for future growth. Investors are encouraged to stay informed and consider the company's potential in their investment decisions.