Lithium Australia reveals wide lithium intersections to fuel Europe’s surging electric vehicle market

Lithium Australia ASX LIT Sadisdorf Germany lithium mica Europe electric vehicle EV SiLeach Lithium Valley
Lithium Australia looks to fuel Europe’s accelerating electric vehicle market with its polymetallic Sadisdorf project in Germany.

Drilling at Lithium Australia’s (ASX: LIT) Sadisdorf project in Germany has revealed lithium-mica intersections up to 78.51m thick, on what the company refers to as “the doorstep” of Europe’s accelerating electric vehicle industry.

To-date, three holes have been completed at the historic mine, with results from the first hole of 32.19m at 0.52% lithium reported in May.

Assays have now been received for the other two drill holes, with one including two thick intersections of 78.51m at 0.51% lithium, and 68.56m at 0.51% lithium.

Meanwhile, the final hole assayed at 78.09m grading 0.48% lithium.

Both the latest drill holes also contained numerous higher-grade intervals that ranged from 0.57% lithium to 0.98% lithium.

Lithium Australia pointed out that these intervals were higher grades than historic drilling which uncovered a maximum of 0.656% lithium.

In addition to the lithium, the drilling program unearthed tin mineralisation, with better intercepts including 19.4m at 0.65% tin and 2.09m at 0.72% tin.

Tungsten was also encountered at depth with a 1m interval grading 1.65% tungsten.

A maiden resource of 25 million tonnes at 0.45% lithium for Sadisdorf was published late last year, with Lithium Australia’s hopes to significantly expand this bolstered by these latest drill results.

“Lithium Australia’s maiden drilling program at Sadisdorf confirms the polymetallic style of the mineralisation and the conservative nature of current resource statements,” Lithium Australia managing director Adrian Griffin said.

Sadisdorf is close to private entity Deutsche Lithium’s Zinnwald asset, which has a resource of 36.4Mt at 3,600 parts per million lithium (0.36%) and European Metals’ (ASX: EMH) Cinovec project in the Czech Republic, where production of 22,500tpa of lithium carbonate has been targeted and pilot testing is underway.

European Metals claims Cinovec is the “largest lithium deposit in Europe” and the “the fourth largest non-brine deposit in the world”.

SiLeach processing technology

Using its proprietary SiLeach process, Lithium Australia plans to unlock the mica-style lithium mineralisation at Sadisdorf and its other lithium permits in Western Australia.

The SiLeach process is a promising alternative to generating battery quality lithium from mineralisation traditionally perceived as “waste” or uneconomic to process.

“We believe our processing technology with lithium mica material can be commercially competitive to that of a hard rock spodumene producer,” Mr Griffin previously told Small Caps.

“Our previous testing demonstrates that SiLeach can unlock the potential of Sadisdorf as a true polymetallic operation, recovering lithium from the residues of conventional tin concentration processes,” he explained.

Mr Griffin added the current Sadisdorf resource could potentially feed a 25,000tpa lithium carbonate plant for a decade.

“The project location can take full advantage of the rapidly developing electric vehicle industry in Europe and has the potential to develop a new industry for Germany,” he said.

Lithium Valley

In addition to developing an operation on Europe’s doorstep, Lithium Australia has also backed calls on the Australian Government to support the development of a Lithium Valley in WA.

The Lithium Valley development has been dubbed a “once in a lifetime opportunity” with WA Chief Scientist Professor Peter Klinken telling Small Caps it would be “bordering on tragic” not to take advantage.

By late afternoon trade, Lithium Australia’s share price had gained more than 2% to reach $0.099.

Lorna has more than 10 years' experience as a finance journalist and editor. She has written for numerous industry publications reporting on various sectors, including: resources, energy, construction, biotech, pharma, science and technology, agriculture, and chemicals. Specialising in resources, Lorna has also covered a myriad of small and large cap ASX and dual-listed stocks.