Lithium Consolidated finds gold anomaly at Warriedar base metals project

Diversified explorer Lithium Consolidated (ASX: LI3) has detected anomalous gold and indicator elements over large areas of the Warriedar West zone which forms part of its wholly-owned Warriedar base metals project in the Murchison region of Western Australia.

Initial analysis of the 5km by 2km anomaly, located adjacent to gold mineralisation and artisanal workings, has confirmed the company’s view that it is prospective for large-scale mineralised systems.

A recent reconnaissance geochemical and geological mapping program collected 232 samples to obtain further insight into the geology and source of the mineralisation through multi-element geochemistry.

The company said some areas of deeper-than-expected transported cover were encountered and will require a re-visit with alternative techniques such as rotary air blast drilling.

The Warriedar West zone contains porphyritic monzonite with a number of known sources of gold mineralisation including in-situ primary quartz veins, laterites and alluvials.

These have been exploited in modern times by artisanal means.

COVID-19 response

Further sampling of the Warriedar West zone has been planned to establish drill targets and extend identified zones once fieldwork resumes after COVID-19.

Lithium Consolidated temporarily suspended exploration this month and implemented cost mitigation strategies as part of its response to the pandemic.

Travel restrictions were cited as having a material effect on planned fieldwork schedules, prompting the company to cease activities and re-focus its technical resources on analytical work including processing of legacy data and drill target generation.

Board and executive management team salaries were voluntarily reduced by 25% and the company is conducting a detailed budget review and asset assessment.

“We remain vigilant in monitoring the COVID-19 crisis and are prepared to act swiftly should further measures be necessary to ensure the continued efficacy of our company, and the health and safety of our employees and stakeholders,” the company said.

New appointment

Earlier this month, Lithium Consolidated appointed Don Smith to the role of managing director and chief executive officer.

Mr Smith is a geologist with over 20 years’ experience in operational, development, exploration and consultant roles for junior and multinational companies, across many countries and commodities.

He has worked for a number of private and public resource companies including base metals explorer Alderan Resources (ASX: AL8), where he was involved in the development of the company’s assets and initial public offering.

At midday, shares in Lithium Consolidated were trading 123.08% higher at $0.029.