Astute Metals (ASX:ASE) has agreed to pay US$150,000 ($227,254) to settle a dispute with Rubicon over competing claims at the Red Mountain Lithium Project in Nevada, US.
According to the terms of the binding settlement, Astute, which has a market capitalisation of $13.95 million, has agreed to pay Rubicon US$75,000 on signing and a further US$75,000 in 12 months to acquire the claims.
Chairman Tony Leibowitz says settling the dispute means the company now has ownership of the full surface area at Red Mountain.
“Our maiden drill program at Red Mountain is imminent, with the allocated rig expected to be on site next week and drilling operations scheduled to begin shortly thereafter,” he says.
The drilling program will consist of 10 drill sites for 1,500m of drilling, subject to ground conditions. The planned campaign covers a wide strike of a previously observed lithium-in-soil anomaly, with holes testing strategic points over a 5km north-south extent.
Astute aims to test for thickness and grade of lithium in the sub-surface.
Meanwhile, Astute has executed an agreement with the University of Alberta for a collaboration project studying methods of extracting lithium from clay.
The aim of the project is to develop lower-cost and environmentally friendly processing methods.
Under the agreement, Astute will provide lithium-bearing clay samples from its projects, while the university will conduct mineralogy and extraction test work on the samples at no cost to Astute.
The work forms part of a PhD study being undertaken at the University of Alberta, and positive outcomes may support Astute in advancing its Nevada lithium projects in due course.
Astute plans to supply samples from recent drilling at the Altair Project, alongside samples from imminent drilling at Red Mountain.
The company has staked 102 additional claims on the south-western boundary of the Red Mountain Project. The new claim area, Mountain Extension, hosts a strong zone of lithium-in-soil anomalism, which Astute says has further potential for lithium mineralisation.
Further, Astute has decided to not go forth with investing in exploration at the Kibby Basin Project, following exploration drilling conducted by Belmont Resources (TSX-V:BEA) and its joint venture partner Marquee Resources (ASX:MQR), which identified weak lithium concentrations in brine and low-level lithium clay.
“This lack of prospectivity is considered to extrapolate to the Kibby Basin Project area and, in light of this, the company has decided that it will not undertake any further investment in exploration on this project area,” Astute said in a statement this morning.
Write to Aaliyah Rogan at Mining.com.au
Images: Astute Metals
