GreenTech Metals discovers high-grade lithium pegmatites at Ruth Well project
Reconnaissance rock chip sampling at the Ruth Well project in Western Australia’s Pilbara region has confirmed multiple lithium-bearing pegmatites for junior explorer GreenTech Metals (ASX: GRE).
Results from 22 samples returned to date have shown encouraging grades of up to 1.65% lithium oxide, with the mineralisation confirmed as spodumene.
Other grades were 1.63%, 1.03%, 0.57% and 0.36%.
Broader program
GreenTech’s work was part of a broader program targeting potentially-prospective areas identified after assessment of historical data and aerial imagery.
Initial samples were taken from sporadic occurrences of poorly-exposed pegmatite within the pegmatite-bearing zone which has been confirmed as up to 200m wide and traced over a 6 kilometre strike, remaining open in all directions.
The pegmatites are strongly foliated to sheared and emplaced within steeply-dipping mafic schists of the Meso-archaean Regal Formation and have been observed to outcrop discontinuously over more than 2km of strike.
A further 40 samples have been sent for analysis and results are due within the coming days.
Highly-prospective foothold
Managing director Thomas Reddicliffe said the company had secured a strategic and highly-prospective foothold in a growing region.
“To date we have traced the pegmatites for 6km and onto our adjoining tenements… it appears to be a significant mineralising event but we are yet to determine the extent of it laterally and along strike,” he said.
“Ruth Well and our advanced Whundo copper-zinc project where we recently reported a significant resource upgrade, positions GreenTech as a rapidly-emerging critical metals business with an advanced project pipeline in WA’s new lithium hot spot.”
Mr Reddicliffe said the company would continue with additional detailed mapping and sampling prior to the start of trenching and drilling at Ruth Well.
Lithium exploration strategy
GreenTech has engaged Obsidian Metals Group in a services agreement to lead its lithium exploration and development strategy in WA.
Obsidian is run by an experienced lithium team with a track record across project identification, development, processing and production.
The group has directly contributed to the discovery of new lithium deposits and the creation of over $2 billion in value to shareholders across its previous lithium transactions.
Share placement
Under the terms of the agreement, Obsidian will invest a minimum $1 million in GreenTech via the placement of 6.9 million shares at $0.144 each.
The funds will provide GreenTech with additional working capital to execute its lithium strategy and continue its work at Whundo.
“Obsidian’s strategic partnership and investment demonstrates the underlying value and quality of our West Pilbara portfolio,” Mr Reddicliffe said.
“We look forward to leveraging Obsidian’s technical expertise in pegmatite-hosted lithium exploration and benefitting from its substantial network of contacts in the global lithium sector.”
Obsidian will receive a $10,000 retainer fee for a period of three years from completion of the placement.