Astute Metals’ (ASX:ASE) share price climbed more than 116% higher to $0.080 this morning (22 July 2024) following receipt of further drilling results bolstering confidence at its Red Mountain Lithium Project in the US.
By market close this afternoon its share price had steadied to $0.038.
A second batch of assays received from the inaugural reverse circulation drilling campaign have returned thick intersections indicating the scale and grade potential at Red Mountain.
The company is awaiting outstanding assay results for the remaining four drillholes (RMRC008-011) completed as part of the maiden drill campaign at Red Mountain. Once received, a full interpretation will be conducted ahead of establishing detailed future plans for the project.
Astute, which has now has a market capitalisation of $15.68 million, reports some of the drilling results include 13.7m @ 1,070 parts per million (ppm) lithium or 0.57% lithium carbonate equivalent from surface; and 25.9m @ 1,580ppm lithium or 0.84% lithium carbonate equivalent from 115.8m.
Chairman Tony Leibowitz says the company’s confidence in the scale of this discovery continues to increase with each drillhole at Red Mountain with the shares of Astute having soared 116% higher today validating much of that confidence.
“Assays from the latest four holes have exceeded expectations and returned some very thick, high-grade intercepts which have confirmed robust lithium mineralisation in the middle of the project, between intersections from the discovery hole,” he says.
“With final assay results expected for the remaining four holes shortly, data from all holes will then be integrated into an updated geological model for Red Mountain with a view to expediting the process to achieving a maiden Mineral Resource Estimate.”
Unlike spodumene concentrate, which is a feedstock for a value-added battery product, lithium carbonate is a principal lithium-ion battery product, which may be used directly in battery production or converted to other battery products such as lithium hydroxide.
The Benchmark Mineral Intelligence Lithium Carbonate China Index priced the lithium carbonate product at US$13,710/t as of 12 June 2024.
Lithium carbonate is the product of many of the most advanced lithium clay projects around the world, including Lithium Americas’ (NYSE:LAC) 16.1Mt LCE Thacker Pass Project, which is currently under construction.
Accordingly, exploration results for Red Mountain have been reported as both the standard parts-per-million and as an LCE percentage.
The Red Mountain Project lies in central-eastern Nevada and has broad mapped tertiary lake sedimentary rocks known locally as the Horse Camp Formation.
Write to Aaliyah Rogan at Mining.com.au
Images: Astute Metals
