GreenTech Metals shares more-than-triple on ‘high-grade’ lithium results at Ruth Well Project, WA

GreenTech Metals (ASX:GRE) shares skyrocketed more than 200% on Thursday (15 June) following fresh reconnaissance rock chip sampling results at the Ruth Well Project in Western Australia.

The company reports the 22 rock chip samples collected at the project have returned lithium oxide grades of up to 1.65% Li2O. ‘Significant’ sampling assays recorded include sample 23GT06_006 with 1.65% Li2O; 23GT10_003 with 1.63% Li2O; and 23GT10_012 with 1.03% Li2O.

The company says a further 40 samples have been collected along the 6km strike length of the pegmatite zone identified to date and have been dispatched to ALS Global for analysis. Results will be reported as soon as they become available.

Following the receipt and assessment of the remaining samples, GreenTech will continue to undertake additional detailed mapping and sampling prior to the start of trenching and drilling.

Commenting on the results, GreenTech Metals Executive Director Thomas Reddicliffe says: “We are very encouraged by these high-grade lithium assays from our reconnaissance program at Ruth Well, which has confirmed the discovery of spodumene-bearing pegmatites with our tenements.

The West Pilbara region is continuing to attract significant interest from listed companies and investors, and GreenTech has secured a strategic and highly prospective foothold”

The West Pilbara region is continuing to attract significant interest from listed companies and investors, and GreenTech has secured a strategic and highly prospective foothold.

The spodumene-bearing pegmatites occur in a zone up to 200m wide which also includes barren pegmatites. To date, we have traced the pegmatites for 6km and onto our adjoining tenements. This appears to be a significant mineralising event, the extent of which both laterally and along strike is yet to be determined.

This discovery in WA’s new lithium hot spot, combined with the company’s advanced Whundo Copper Project, where we recently reported a significant resource upgrade, positions GreenTech as a rapidly emerging critical metals business with an advanced project pipeline.”

GreenTech also reports it has entered into a services agreement with Obsidian Metals Group (OMG) to explore for, evaluate, and potentially develop lithium-bearing pegmatites throughout GreenTech’s tenement package and across the broader West Pilbara region of Western Australia.

As part of the proposed terms of engagement, OMG or its nominees will invest a minimum of $1 million in GreenTech through a placement of over 6.944 million shares at $0.144 per share. 

This will provide the company with additional working capital to execute its near-term lithium exploration strategy while also having the capacity to continue to advance its Whundo Copper Project. Additionally, this placement is subject to shareholder approval, with shares expected to be issued in late July.

Under the agreement, GreenTech will also issue to OMG up to 35 million options that will vest at various stages of GreenTech’s exploration and development process or based on its share price movements. 

GreenTech will also extend its corporate mandate with CPS Capital to include corporate advisory services on lithium exploration to the market and, in consideration, will issue 5 million options to CPS on similar terms to the first tranche of options that OMG will receive.

GreenTech Metals is an exploration and development company focused on its Ruth Well, Sholl, Whundo, Bertram, and Azure Andover projects in the Pilbara region of Western Australia. These projects are considered prospective for nickel, copper, lithium, and zinc.

Write to Harry Mulholland at Mining.com.au

Images: GreenTech Metals Ltd
Written By Harry Mulholland
Hailing from the Central Coast region of NSW, Harry is a passionate journalist with a background in print, radio and ESG news. When not bashing away on his keyboard, he can be found brewing a coffee or playing with his dog.