Lithium Plus Minerals: Quarterly Update on Lei Lithium Project Progress
LPM (LPM) Share Update October 2024 Thursday 31st
Lithium Plus Minerals Advances Lei Lithium Project with New Developments
Lithium Plus Minerals Limited (ASX: LPM) has announced significant advancements in its Lei lithium project, highlighting a new mining lease application and successful metallurgical test results.
Instant Summary:
- Mining lease application for Lei lithium deposit lodged.
- Lei deposit boasts 4.09 million tonnes at 1.43% Li2O.
- Successful metallurgical tests with up to 85.3% recovery.
- Profit-sharing MOU with Canmax for spodumene offtake.
- Exploration drilling targets new high-grade lithium discoveries.
Mining Lease Application
Lithium Plus Minerals has lodged a mining lease application for the Lei lithium deposit, strategically located near the Port of Darwin in Australia's Northern Territory. The deposit is notable for its high-grade mineral resource estimate of 4.09 million tonnes at 1.43% lithium oxide (Li2O), positioning it among the highest-grade lithium deposits in the country.
The proposed development includes an underground mine, waste management facilities, and infrastructure to support mining operations. The spodumene ore is planned for export to Canmax's processing facilities in China, where it will be converted into lithium hydroxide for global battery manufacturers.
Metallurgical Test Work
Recent metallurgical tests on the Lei deposit ore have shown promising results, with multiple processing routes achieving high recovery rates. A dense media separation (DMS) test on a run-of-mine sample yielded a 69.6% recovery, while a high-grade sample achieved 76.9% recovery. A combination of DMS and flotation techniques led to an impressive 85.3% recovery rate.
These outcomes provide confidence to offtake partners and support the company's direct shipping ore (DSO) development plan.
Exploration and Expansion
Exploration efforts continue with a focus on discovering new high-grade lithium deposits. Initial rotary air blast (RAB) drilling has been completed, targeting untested pegmatite occurrences. Follow-up reverse circulation (RC) drilling is planned to further evaluate these targets, aiming to deliver multiple new lithium discoveries.
Acquisition of Uranium and REE Projects
In addition to its lithium projects, Lithium Plus has acquired a portfolio of Australian uranium and rare earth element (REE) projects. This includes the MacDonnell Ranges Uranium Project and the Fox Hill REE Project, expanding the company's resource base and potential revenue streams.
The advancements in the Lei lithium project are likely to positively impact Lithium Plus Minerals' stock, as the high-grade deposit and successful metallurgical tests enhance the project's economic viability. The profit-sharing agreement with Canmax further strengthens the company's financial prospects by providing early cash flows without the need for significant capital expenditure on downstream processing facilities.
Investor Reaction:
Analysts are likely to view these developments favorably, given the high-grade nature of the Lei deposit and the strategic partnership with Canmax. The successful metallurgical tests and exploration efforts could lead to increased investor confidence and interest in Lithium Plus Minerals.
Conclusion:
Investors should keep an eye on the progress of the Lei project and the potential for new lithium discoveries. The company's strategic moves, including the acquisition of uranium and REE projects, position it well for future growth in the resource sector.