Askari Metals has embarked on another round of field mapping and sampling at the company’s Barrow Creek lithium project located in the NT’s Arunta pegmatite province. The field program is designed to identify and sample outcropping pegmatites in the previously unexplored south-central portion of the project.
Rock samples will be collected on all visible outcrops and the results will be used to advance the company’s understanding of the area as it looks to define future exploration targets.
Askari’s previous surface sampling efforts identified fertile pegmatites with lithium values of up to 817 parts per million lithium oxide in the project’s north-east and anomalous lithium oxide results of up to 456 ppm were uncovered at the project’s south-eastern segment.
An upcoming drill program in Barrow Creek’s north-east area is pending as the company awaits the green light to start drilling from the NT Mines Department.
Approvals to drill the south-west area have already been submitted with drill design nearing completion.
In addition, the preliminary exploration success in the project’s other two areas has inspired Askari to also apply for permits to auger, air-core and RC drill across the south-central region.
Askari Metals Vice President of Exploration and Geology, Johan Lambrechts said: “The Company is encouraged by our discovery of fertile and very anomalous pegmatites in the north-east and south-west of the project area (respectively) and are excited to complete our reconnaissance phase of the south-central part of the Barrow Creek project with this current work program.”
The company’s management says the south-central portion of the project hosts the same depositional environment as the zones where lithium mineralisation has already been confirmed and believes the area’s steep topography is part of the reason for its under-explored nature.
As per the US Geological survey, Australia is the lead producer of lithium in the world and is miles ahead of the competition.
Interestingly, according to 2017 data Geoscience Australia found that WA has more than 99 per cent of the nation’s lithium resources with less than half a per cent attributed to the NT.
The statement could soon be due for a revision as the NT’s potential for pegmatites has attracted a handful of explorers over recent years.
Among the raft of explorers throughout the Territory, Askari’s Barrow Creek project is sandwiched between ASX-listed Core Lithium and the recently ASX-listed Lithium Plus Minerals.
In 2016 Core first intercepted pegmatites at its flagship Finniss lithium project near Darwin and now it appears the 2016 discovery is bearing fruit. Whilst still not as sizeable found as those found in WA, last month Core tabled a resource upgrade of 28 per cent at Finniss increasing the estimate to 18.9 million tonnes at 1.32 per cent lithium oxide.
Core and electric vehicle juggernaut Tesla are currently in talks to ink a binding offtake agreement for the supply of up to 110,000 tonnes of lithium spodumene concentrate from Finniss over four years, beginning in 2023.
Yesterday, the pair mutually agreed to extend negotiations to 26 October 2022 as the companies look to execute a definitive agreement based on a terms sheet signed earlier in March.
Whilst the deal is yet to be closed out, it is notable to have a client like Tesla even kicking the tyres of the NT’s lithium resources.
In 2018 Core picked up a lithium-focused holding in the Barrow Creek area stating its new project was “an early-stage look-alike” to Finniss.
Core’s Barrow Creek project borders Askari’s to the west and north.
Another explorer seeking to derive some lucrative lithium from the Barrow Creek area and the broader Territory is the recently ASX-listed Lithium plus.
Interestingly, the world’s largest lithium-ion battery manufacturer Contemporary Amperex Technology Co. Limited has a nine per cent slice of Lithium Plus through its jointly owned Suzhou CATH Energy Technologies Co Ltd.
Having listed in April the company has already pulled some wide pegmatite intercepts out of its Bynoe project neighbouring Core’ Finniss, however the company also holds ground over Askari’s eastern fence line.
As the Northern Territory’s lithium industry appears to be growing into its shoes, more than a few sets of eyes may be drawn towards Askari’s rock pick and drill bit in the coming months.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
