Leo Lithium pounces on resource growth opportunities at Goulamina Lithium Project in Mali

Pure-play lithium company Leo Lithium (ASX:LLL) has encountered further thick ‘high-grade’ mineralisation outside the current resource in a drilling program at its Goulamina Lithium Project in Mali.

The company reports exploration reverse circulation (RC) drilling is continuing at the project, with further results from the Northeast and Danaya domains expected throughout Q2 and into Q3 2023. Leo also expects an updated Mineral Resource Estimate (MRE) for Goulamina to be released before the end of the June 2023 quarter.

The company says results from 41 drillholes completed at the Danaya Domain are continuing to demonstrate ‘excellent’ grades while also remaining open at depth and along strike.

The mineral resource at Goulamina is constrained within an RPEEE (Reasonable Prospects for Eventual Economic Extraction)-optimised pit shell. Leo says additional mineralisation identified outside the pit shell can potentially increase the mineral resource.

‘Significant’ results recorded at the Danaya Domain include GMRC689 with 92m @ 2.01% Li2O from 132m, including 36m @ 3% Li2O from 132m; GMDD013 with 112.7m @ 1.43% Li2O from 83.2m; and GMDD014 with 82.8m @ 1.54% Li2O from 153.2m.

Meanwhile, results have been received for 16 RC and diamond drillholes that intersected thick ‘high-grade’ spodumene pegmatite dykes at the Northeast Domain.

Leo reports spodumene is the only lithium-bearing mineral phase recognised, and notes mineralisation remains open along strike and down-dip.

‘Significant’ results recorded at the Northeast Domain include GMRC597D with 60.35m @ 1.72% Li2O from 205.3m and 14m @ 2.17% Li2O from 271m; GMRC613D with 39m @ 1.98% Li2O from 74m; GMRC694 with 46m @ 1.45% Li2O from 112m; and GMRC693 with 64m @ 1.38% Li2O from 102m and 27m @ 1.73% Li2O from 187m.

Commenting on the results, Leo Lithium Managing Director Simon Hay says: “The latest results show excellent intercepts and grades outside the current pit shell. With the potential to grow the mineral resource outside the current project area, the opportunity to unlock further value from the outstanding Goulamina asset continues to be apparent.

With the potential to grow the mineral resource outside the current project area, the opportunity to unlock further value from the outstanding Goulamina asset continues to be apparent

With drilling continuing, we remain on track to update the Mineral Resource Estimate for Goulamina in late June and release a reserve upgrade in August.

Our project also remains on schedule for first spodumene concentrate product in late H1 2024, and early revenue materialising from the DSO (direct shipping ore) in the second half of this year.”

Leo Lithium is a pure-play lithium company focused on developing its Goulamina Lithium Project in Mali. Goulamina is scheduled to deliver its first spodumene concentrate by mid-2024 to supply the lithium-ion battery industry.

The project is held in a joint venture with Chinese chemical producer Ganfeng (SHE:002460), with both companies holding a 50% interest. Once in production, Goulamina will be the first spodumene producer in West Africa.

Write to Harry Mulholland at Mining.com.au

Images: Leo Lithium 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.