TG Metals (ASX:TG6) has begun diamond drilling at the Burmeister lithium deposit to produce spodumene-rich samples for potential direct shipping ore (DSO) customers.
The three-hole program is being conducted within the conceptual Stage One DSO pit shell at the company’s 100%-owned Lake Johnston Lithium Project.
Drilling will infill the existing hole pattern and is expected to take up to three weeks. The recovered core will be cut, scanned, crushed, and screened before being provided to interested customers, while quarter-core samples will undergo laboratory analysis.
TG Metals says the program follows requests from potential offtake partners after a maiden resource estimate for Burmeister released earlier this week, as reported.
CEO David Selfe says discussions with traders and spodumene customers are progressing alongside drilling.
“Following requests for raw samples of our lithium pegmatite by potential offtake partners, core drilling has commenced at Burmeister,” Selfe says.
“With the initial DSO pit shell taking in 6.7 million tonnes [Mt], Burmeister would potentially be the largest DSO open pit lithium development in Australia.”
The maiden inferred mineral resource estimate comprises 6.7Mt @ 1.18% lithium oxide (Li₂O), reported above a 0.4% Li₂O cut-off grade within an optimised pit shell.
Burmeister also has an exploration target of 11–14.5Mt @ 0.9–1.2% Li₂O. The target is conceptual, with further exploration required to determine whether it can be converted into a mineral resource.
TG Metals says it has started preparing preliminary mine layouts following the submission of a mining lease application in June. The conceptual plan considers a Stage One DSO operation, including an open pit and supporting infrastructure, followed by a larger Stage Two concentrate operation.
The second stage would use a hybrid dense media separation and flotation plant based on a flowsheet developed through previous metallurgical test work.
Selfe says the DSO pathway could require less upfront capital and potentially generate cash flow to help fund the proposed concentrate operation. However, the development concepts remain subject to further studies, approvals, financing, and other requirements.
The company notes it will continue evaluating pit design, crushing requirements, and off-site haulage routes. Flora, fauna, and Aboriginal heritage surveys are also planned along proposed access routes.
Separately, TG Metals says it expects to begin aircore drilling on laterite gold targets at its 80%-owned Van Uden Gold Project in the third quarter. The results will support its ongoing gold heap-leach study.
TG Metals is a Western Australian exploration and development company focused on lithium at Lake Johnston and gold at Van Uden.
Write to France Pinzon at Mining.com.au
Images: TG Metals
