De Grey Mining (ASX: DEG) has struck high grade lithium at its 100%-owned King Col prospect near Port Hedland in Western Australia’s Pilbara region.
The scout drilling program encountered a 17m intercept grading 2.55% lithium, with drilling also returning a 1m intercept grading 8.63% caesium oxide.
Petalite and lepidolite were also identified, which are used in producing lithium carbonate for the battery market.
De Grey Mining exploration manager Phil Tornatora said the discovery was “significant” because the company had only tested a small portion (2km) of its 7.5km lithium-caesium-tantalum target.
According to Mr Tornatora, the King Col prospect lies 50km from Pilgangoora and Wodgina which are “world class” lithium deposits.
“We are clearly in an exceptional lithium province,” he added.
Boosting the project’s viability is access to nearby infrastructure and port facilities.
To further understand the mineralisation, mapping, rock chip and soil sampling will be carried out over the remaining 5.5km target, as well as diamond drilling at holes where pegmatite mineralisation has been discovered.
The company will also conduct reconnaissance drilling to detect potential lithium to the north east of the prospect, with the exploration partially funded under the WA Government’s exploration incentive scheme.
WA’s Pilbara is proving to be a gold mine for De Grey Mining which has reported multiple gold conglomerate discoveries across its Pilbara landholding in recent weeks.
Less than a month ago, De Grey Mining’s stock surged 150% after the company reported it had identified 91 gold nuggets across 1.5km of strike.
These discoveries are in addition to the company’s existing resource of more than 1 million ounces of gold.
Investors have reacted well to the stream of news with mid-tier gold producer Kirkland Lake Gold purchasing $5 million-worth of the company’s stock at the beginning of the month, as the hunt for gold in the Pilbara intensifies.