Greenpower Energy (ASX: GPP) has discovered high grade lithium oxide at its Morabisi lithium-tantalum-rear earths project in South America’s central Guyana, which is a known mining-friendly jurisdiction.
The sample grading 2.63% lithium was taken from the Turesi Ridge prospect, with spodumene and polylithionite minerals also reported. Another four grab samples across 125m all assayed above 2% lithium.
According to Greenpower Energy, exploration activity at Turesi suggests “a zone of lithium pegmatites greater than 90m in width”.
“The initial trending results indicate the presence of lithium analyses greater than those encountered at Pilgangoora,” Greenpower Energy executive chairman Gerard King said.
Pilbara Minerals’ Pilgangoora lithium project is situated in Western Australia’s Pilbara and is due for commissioning in early 2018.
The project boasts proved and probable ore reserves of 80.3 million tonnes grading 1.27% lithium oxide and 123 parts per million of tantalite.
A definitive feasibility study published in September 2016 projected A$9.23 billion in life-of-mine revenue.
Less than two years ago, Pilbara Minerals’ market capitalisation was about $140 million, but with the lithium mine on the cusp of production, its value has crossed the $1 billion mark.
Mr King said Greenpower Energy’s view was the Morabisi project could rival the Pilgangoora project in size.
Further trenches have been planned at Turesi to follow up the high-grade lithium results.
Meanwhile, exploration was also undertaken at the Banakaru prospect, which encountered high kaolinite zones.
Greenpower Energy has also established a camp at the Robello asset, where it is evaluating prospectivity for rear earths, tantalite and niobium.
The entire Morabisi project encompasses 950,000 acres and is near roads, power and a number of local townships.
By early afternoon trade, Greenpower Energy’s stock had shot up more than 70%.