MetalsTech kicks-off maiden drilling program at Adina lithium project

MetalsTech ASX MTC drill hole mapping Cancet
Drill hole mapping at MetalsTech's Cancet Lithium Project, Quebec.

MetalsTech (ASX: MTC) has kicked-off a maiden drilling program for its 100%-owned Adina lithium project in Canada where preliminary rock chip sampling returned up to 3.12% lithium.

The 2,000m diamond core drilling campaign is the first of a two-phase program and will target a 350m by 2km area where preliminary exploration of outcropping pegmatite returned the high lithium values.

MetalsTech completed mapping at Adina in 2016 and identified areas with high spodumene concentrations. Rock chip samples from preliminary exploration ranged from 1.19% lithium to 3.12%.

“Adina appears to host a very large geological structure, based on outcropping pegmatite and ridge topography,” MetalsTech executive director Gino D’Anna said.

He added previous mapping and surface sampling assays indicated the project’s potential for “strong lithium prospectivity”.

The 15 to 20-hole drilling program will test strike, dip and continuity of the pegmatite as well as provide enough evidence for an initial resource.

Mr D’Anna said if exploration at Adina proved successful, the project could offer co-development opportunities with MetalsTech’s flagship Cancet project which is nearby.

MetalsTech is aiming to firm up a resource of up to 25 million tonnes grading 2% lithium at Cancet. However, the target is purely conceptual at this stage.

Results from the December drilling program at Cancet returned shallow high-grade lithium including 5m grading 1.83% lithium, with a 1m interval grading 6.18% lithium.

Another strong intersection was 14.96m grading 1.43% lithium, with a 7.96 interval containing 2.55% lithium.

MetalsTech plans to continue resource definition drilling at the project mid-year, as well as evaluating further targets.

Meanwhile, China-based Wuxi Balchuan Chemical Industry has completed due diligence required to purchase A$1.8 million MetalsTech shares at A$0.18 each – giving the company a 10% interest.

Under the agreement entered into in late October last year, if Wuxi Balchuan increases its stake in MetalsTech to 15%, the China-based company will be entitled to nominate a representative to the MetalsTech board.

Shares in MetalsTech were unchanged at A$0.17 in early morning trade.

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.