Redstone Resources increases exposure to global battery minerals market throughout Q2 2023

Base and precious metals explorer Redstone Resources (ASX:RDS) is increasing its exposure to the global battery minerals market, after continuing to assess new project opportunities in Australia and Canada throughout Q2 2023.

On 10 July 2023, the $6.09 million market capitalisation company secured an option to acquire a 100% interest in the Radisson East and Sakami Lithium projects in the James Bay region of Quebec, Canada.

These projects cover a combined 90km-square and cover more than 50km of ‘highly prospective’ greenstone belt with coincident lithium-in-lake anomalism and are host to several known pegmatite occurrences and outcrops.

As reported in its June quarterly report, on 4 May, the company entered an exclusive agreement to acquire the legal and beneficial interest in the Attwood Lake Lithium properties which are considered ‘highly prospective’ for lithium and rare element pegmatites.

Shortly after securing the project, Redstone began a phase one reconnaissance exploration program, which comprised a helicopter-supported geological mapping and sampling program for lithium and rare earth element (REE)-bearing pegmatites, which was completed by the end of June 2023.

At the West Musgrave Project in Western Australia, Redstone reported assay results from drillhole TLC205, which was completed at the Chatsworth prospect within the Tollu copper deposit. This hole intersected 11m @ 1.2% Cu from only 29m downhole, extending the previously intersected ‘high-grade’ copper lens a further 20m towards the surface. 

At the HansTail Gold Project in Western Australia, Redstone completed a small-scale RC drilling program to test for a potential gold-bearing structure beneath the tailings dam with results from the drilling program still pending. An extension of the term application for prospecting licence P26/4308 for a further 4-year term to 2 April 2027 was also granted during the quarter.

On the corporate side, Redstone raised $1.28 million in a ‘well-supported’ placement, under which 128 million shares were issued at $0.010 each, along with a 1 for 3 free-attaching unlisted $0.025 option exercisable on or before 31 December 2025.

As Redstone’s assessment of Attwood Lake develops and the company decides where to proceed or not to proceed with the project, Redstone says it will need to raise additional funds

Proceeds from this placement will be used to undertake further exploration activities at Atwood Lake and West Musgrave, along with general working capital purposes.

As Redstone’s assessment of Attwood Lake develops and the company decides where to proceed or not to proceed with the project, Redstone says it will need to raise additional funds. Decisions on fund raising methods will depend on the prevailing circumstances and market conditions at the time those decisions are made.

The company closed out the quarter with $1.02 million cash at hand, which is considered sufficient for the short to medium term. During Q2 2023, Redstone incurred exploration spend of $84,000, and other than the phase one program completed by the end of June 2023, there were no ‘substantive’ mining exploration activities in the quarter.

Commenting on the company’s activities in Q2 2023, Redstone Resources Chairman Richard Homsany says: “The June quarter was a transformational period for Redstone, highlighted by introduction of a suite of high-quality Canadian lithium assets into the company.

Redstone has recently secured 2 highly favourable option agreements for lithium projects in the world-class James Bay Lithium District and in Ontario – a region boasting several tier-one lithium projects.

The decision to increase our exposure to lithium aligns very closely with our plans for our West Musgrave Copper Project in Western Australia, as Redstone strengthens its position as an emerging battery metals exploration business. 

With targeted exploration programs currently being planned across both our lithium and copper assets, Redstone enters Q3 with considerable momentum and in a strong position to quickly unlock value.”

Redstone Resources is a base and precious metals explorer focused on its West Musgrave Project in Western Australia. The company is continuing to evaluate the HansTail Gold Project in Western Australia for potential development in the future.

In Canada, the company has the option to acquire the Attwood Lake Lithium Project in Ontario, and has entered into an option agreement to acquire the Radisson East and Sakami Lithium projects in Quebec.

Write to Harry Mulholland at Mining.com.au

Images: Redstone Resources 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.