Red Mountain Mining hits high-grade lithium in Phase 2 drilling at Mustang
Red Mountain Mining (ASX: RMX) has intersected high-grade lithium mineralisation in nearly three-quarters of drill holes at the wholly-owned Mustang project in the US.
Fast-tracked assays from Phase 2 drilling at the Nevada discovery showed that thick lithium claystone was intersected in eight out of 11 holes.
Seven holes were reported to have intersected high-grade lithium from or near the surface, indicating strong potential for continued mineralisation towards the open south-western region of Mustang.
The strike distance of lithium mineralisation at Mustang now exceeds 3,000m.
Nevada-based contractor Alloy Drilling completed the Phase 2 work which targeted a maximum depth of 150m per hole.
Ample confidence
Red Mountain chair Troy Flannery said the latest assays provide the company with “ample confidence” to proceed to Phase 3 exploration at the flagship project.
“It has been [a case of] ‘all systems go’ for us over the past six months, with positive metallurgical testwork achieved and second phase drilling completed at Mustang… we are pleased to have received these positive results and look forward to preparing for our third phase of drilling,” he said.
“We are excited to expand our target for further lithium mineralisation towards the southwest and we look forward to enhancing value for our shareholders by building the pathway to a lithium resource.”
Mr Flannery said the company would commence generating “compelling new drill targets” and submit drill permit applications to Nevada’s Bureau of Land Management in preparation for the Phase 3 program.
Maiden campaign complete
The Mustang project is situated 9 kilometres south of the Kibby Lake project (owned by Canadian explorer Belmont Resources) and 40km east of the TLC deposit (owned by American Lithium).
In July, Red Mountain completed a Phase 1 maiden reverse circulation campaign at Mustang which confirmed a lithium discovery identified through initial surface sampling in February.
Drilling comprised a total of 10 holes, with eight reporting thick and high-grade lithium claystones and seven intersecting high-grade lithium from or near surface.