Leo Lithium (ASX:LLL) has upgraded the Mineral Resource Estimate (MRE) for the Goulamina Lithium Project in Mali by 31% to 142.3 million tonnes @ 1.38% Li2O
A resource definition drilling campaign was undertaken in H2 2022 on pegmatite dykes in the south-west of the Goulamina Project, part of the Danaya Domain. The Danaya Domain resource, which is located within the broader Goulamina Project, increased by 33.8Mt to 56.1Mt @ 1.24% Li2O, a 152% increase.
Commenting on the increased MRE, Leo Lithium Managing Director Simon Hay says: “We are pleased to report a considerable resource upgrade which confirms the outstanding scale, high-grade nature, and further growth potential of the Goulamina Project. An increase in Danaya of 33.8 million tonnes from a moderate drilling campaign of approximately 12,700m, is a fantastic outcome.
“These results continue to reveal high-grade, thick intercepts and confirm our expectations of multiple, wide mineralised pegmatite zones”
These results continue to reveal high-grade, thick intercepts and confirm our expectations of multiple, wide mineralised pegmatite zones. Also, the deposit remains open at depth and along strike, creating new drilling targets for the team. This significant upgrade also supports the possible extension of the 23-year mine life of the Goulamina project.
Resource definition drilling continues on the Northeast Domain with drilling results to be announced shortly, and a MRE subsequently set to be restated in the current half year.
These results are also encouraging ahead of first spodumene concentrate production in Q2 2024 and the early revenue opportunity from the targeted export of direct shipped ore in H2 2023.”
Leo reports independent resource consultancy CSA Global was commissioned to undertake the Danaya MRE updates resulting in the classification of indicated and inferred mineral resources.
The company says these resources added to the MRE are constrained below the top of fresh rock (TOFR) surface, and are reported within a US$1,250 optimised pit shell. Mineralised pegmatite material within the optimised pit shell is considered by Leo to have ‘reasonable’ prospects for eventual economic extraction.
During the 2022 resource definition drilling program at Danaya, Leo completed 60 reverse circulation (RC) holes for a total of 9,292m, as well as 17 diamond drillholes for a total of 3,428.
Leo reports diamond core assay are still pending, and were not included in this MRE update, however the diamond core geological and structural information was used to assist in defining the pegmatite solids.
The company says future drilling at Danaya will focus on further resource extensions below and along strike of the optimised RPEEE pit shell, as well as increasing the confidence level by converting inferred to indicated material within the pit shell.
Leo also reports the infill and resource extension drilling has resulted in a reinterpretation of the Danaya geology. The structural and geological information from the drilling program campaign has been used to update the geological model which builds the framework for this resource update.
The company says drilling activity at the Northeast Domain is ongoing with 1 RC rig and 1 diamond rig. Moving forward, Leo hopes to restate the Goulamina resource in the first half of 2023. It also notes the Danaya MRE has highlighted opportunities to further extend the mineral resource with additional resource drilling.
Leo Lithium is an ASX-listed exploration and development company focused on the Goulamina Project in Mali. The project covers a land holding of 100km-square in the Bougouni region about 150km by road from Mali’s capital, Bamako.
Early stage development of the project is currently underway, with Leo targeting to produce first production of spodumene concentrate in the first half of 2024.
Images: Leo Lithium Ltd
