Venari Minerals (ASX:VMS) has updated the mineral resource estimate (MRE) for its Red Mountain Project in Nevada, US, to include strontium and magnesium alongside lithium.
The updated MRE comprises 500 million tonnes (Mt) at 0.61% lithium carbonate equivalent (LCE) for 3.03Mt contained LCE, 0.53% strontium carbonate equivalent (SCE) for 2.67Mt contained SCE, and 2.4% magnesium for 12Mt contained magnesium.
Red Mountain is expected to become the only MRE containing strontium in the US. Strontium is considered a Strategic Material by the US Department of War (DoW), and the country is 100% import-dependent on its supply.
Additionally, magnesium is listed as a US Department of Energy Critical Mineral, with the US importing 59% of its supply.
The strontium and magnesium by-products carry high value, reportedly priced at about US$2,000 ($2,869) per tonne for strontium carbonate and between US$370 and US$430 per tonne for epsomite.
Chairman Tony Leibowitz says the addition of strontium and magnesium to the Red Mountain MRE gives this “already substantial” lithium project “a unique strategic dimension for a US-domiciled critical minerals project”.
“More importantly, these by-products add considerable potential economic value as Red Mountain is [advancing] towards a Scoping Study in Q1 of next year,” Leibowitz says.
Venari is running a metallurgical test work campaign evaluating sulphuric acid leach, hydrochloric acid leach, oxalic acid leach, and roasting methods to establish a processing flowsheet for a Scoping Study expected by Q1 2027.
“We are undertaking comprehensive test work to understand how these materials may be recovered alongside lithium and whether they can contribute additional value to the future development of Red Mountain,” Leibowitz says.
An infill drilling campaign is also underway to upgrade the resource category from inferred to indicated in the ‘higher-grade’ northern section.
The company says it is registering to join the Defense Industrial Base Consortium to access US DoW grant funding.
“Red Mountain is rapidly evolving from a major US lithium discovery into a broader strategic minerals opportunity, and we believe that gives the project a compelling position in the US market,” Leibowitz remarks.
“We now have an enhanced platform upon which to build a significant mining company, underpinned by one of the largest new lithium resources in North America […] containing a unique by-product critical for defence applications that are strongly aligned with the Trump administration’s goal of onshoring strategic material supply chains.”
Venari Minerals is an explorer focused on critical and precious metals.
Write to Paula Fabe at Mining.com.au
Main image: Venari Minerals
