Chariot revises lithium exploration strategy to trial pilot mine at Black Mountain

Chariot Corporation (ASX: CC9) will pause the exploration for a large-scale resource at the Black Mountain hard rock lithium project in the US to test the viability of a smaller-scale pilot mine.

The change in strategy aims to speed the supply of spodumene concentrate to US lithium hydroxide refineries under construction and meet rising global demand for the critical mineral.

The company is currently in negotiations with a drilling contractor and plans to commence work as soon as a rig and crew are available.

RC program

Work will commence with a Phase 2 reverse circulation (RC) drilling program over the coming months comprising 43 holes for a total of 4,300 metres.

The program will focus on two southern pegmatite outcrops that have previously exhibited high fractionation and spodumene at surface.

Chariot hopes to define a small-scale lithium resource for the proposed pilot mine while advancing the understanding of Black Mountain’s mineralisation and geology to identify targets for the delineation of a resource to support future large-scale mining.

Risk mitigation

The establishment of a pilot mine at Black Mountain has the potential to materially mitigate risks associated with a future large-scale development.

It is expected to improve the understanding of the project’s geology and grade control requirements and will feature a scalable and modular “demonstration” processing plant onsite.

The process will include crushing, gravity separation and/or froth flotation tailored for hard rock pegmatite dykes and based on results from metallurgical testing, pilot mine feasibility studies and detailed design processes.

Chariot said the initially small-scale plant could be quickly and cost-effectively expanded and commissioned when the need arises and will consider enhancing the project economics through the recovery of valuable metals such as tantalum, tin and beryllium, contingent on metallurgical testing of the extracted ore.

Small mine permit

Wyoming is one of the few US states that enables resource development at a small scale using a “small mine permit” administered by the Department of Environmental Quality.

The permit is designed for early-stage projects without large-scale infrastructure and is limited to surface mining operations involving no more than approximately 26,700 cubic metres of overburden (excluding topsoil) and disturbing less than 40,000 square metres of land per year.

The streamlined application process offers reduced regulatory requirements, simplified environmental reviews and rapid project initiation, making it suitable for projects such as Black Mountain that have near-surface lithium deposits.

Local consultants

Chariot has engaged several consultants in Western Australia to consider the pilot mine project.

The company will ship a 200-kilogram sample of mineralised diamond drill core from Wyoming to Perth for metallurgical testing under the supervision of METS Engineering Group.

METS will provide guidance on the test work program and plant design, using its extensive experience on WA-based hard rock lithium projects at Greenbushes (owned by Talison Lithium) and Pilgangoora (Pilbara Minerals (ASX: PLS).