Perth-based Essential Metals (ASX:ESS) reports planning for a detailed Feasibility Study is well underway at its Pioneer Dome Lithium Project in Western Australia.
The company says the study will initially focus on metallurgical testwork and is slated for completion by September 2024, with a decision to mine to be made in Q4 2024 subject to satisfactory outcomes from the study and funding arrangements.
Speaking of funding arrangements, Essential reports it has recommenced an expression of interest (EOI) process with international and local lithium participants to secure financing and offtake partnerships to develop Pioneer Dome.
The company says shareholder approval is not required to approve any of these initiatives, noting the company is unencumbered to fast-track these discussions and opportunities with a focus on achieving the best possible outcome for all Essential shareholders.
The metallurgical testwork programs being undertaken as part of the study include further pilot dense medium separation (DMS), flotation, magnetic separation optimisation, de-sliming, mica pre-flotation and optimisation, and further flotation testwork to improve spodumene flotation concentration grade and recovery.
Essential also reports a reverse circulation (RC) drilling program aiming to test 3 target areas will begin next month. The company says 2 targets are proposed to be drill tested at Dome North, with the first being the southwestern extension (DN_32) of the Heller spodumene-bearing pegmatite, while the second is a northeast-trending pegmatite body that is poorly exposed between the Davy and Heller.
Meanwhile, the third target for drilling (PEG004) is located on the eastern side of the Pioneer monzogranite. Essential says it will test these targets with shallow RC drilling to fully penetrate any pegmatites intersected.
Commenting on the Feasibility Study, Essential Metals Managing Director Tim Spencer says: “Following the significant events of the past few weeks, Essential remains in a strong position as an Australian lithium developer.
“Essential remains in a strong position as an Australian lithium developer”
With Mineral Resources Limited recently becoming our new largest shareholder, and against the backdrop of improving sentiment in the lithium sector, we are of the view that the rest of 2023 will be very positive for Essential in terms of moving towards project development at Pioneer Dome.”
Additionally, Essential reports Mineral Resources (ASX:MIN) holds a 19.55% interest in the company after disclosing a holding of 52.3 million ESS shares to the Australian Securities and Investments Commission (ASIC).
At a recent meeting with MinRes management, Essential reports MinRes confirmed its investment in the company is consistent with its focus on lithium opportunities in the Mt Marion region, noting Pioneer Dome is about 100km from its Mt Marion Mine.
MinRes has offered to assist Essential with various activities, such as exploration techniques and permitting.
Essential Metals is a Western Australian mining company focused on discovering lithium and other key global demand-driven commodities. The company’s portfolio includes the Pioneer Dome Lithium, Juglah Dome Gold, and Golden Ridge Gold projects.
Pioneer Dome is located about 130km south of Kalgoorlie in the Eastern Goldfields of Western Australia and hosts a mineral resource of 11.2 million tonnes @ 1.16% lithium oxide, including 8.7 million tonnes @ 1.23% lithium oxide within the indicated category.
Images: Essential Metals Ltd
