Lithium Australia announces maiden Resource estimate in Germany
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As the global lithium arms race continues, Australian resources companies are keen to stay ahead of developments. As a commodity, lithium is on-track to carve out its own distinct market niche fuelled by lithium-ion batteries; therefore, the chase for ample high-grade lithium resources has begun in earnest.
Keen on synchronising its own development with that of the broader lithium market is Lithium Australia (ASX:LIT).
Just this week, LIT has announced a maiden lithium Mineral Resource estimate for its recently-acquired Sadisdorf project in Saxony, Germany.
Source: Lithium Australia
LIT’s maiden estimate was conducted by CSA Global, who’ve estimated an Inferred Mineral Resource of 25 million tonnes grading 0.45% Li2O, based on re-analysis and re-interpretation of historical drilling and underground sampling at Sadisdorf.
The formal Resource statement substantially enhances LIT’s chances of progressing the Sadisdorf tin-tungsten mine to a polymetallic deposit with value contributions from lithium, tin and tungsten, as well as from a range of potassium by-products.
With the implementation of LIT’s patented SiLeach process, LIT is able to source additional quantities of potassium sulphate fertiliser and sodium silicate from the same ore which is expected to supplement LIT’s revenues and smooth out the path to economic viability at Sadisdorf.
LIT intends to provide a full-service solution in lithium by possessing its own lithium resources and patenting a method of extracting high-grade lithium from host rocks, thereby widening the scope from where lithium can be sourced. Longer term, LIT plans to integrate itself into modern lithium mining and processing, courtesy of its list of JV deals, its own Resources and patented SiLeach technology. The Sadisdorf Project in Saxony is logistically well-placed to supply the European battery and electric vehicle market which is growing strongly.
However LIT does remain a speculative stock and investors should seek professional financial advice if considering this stock for their portfolio.
LIT Managing Director Adrian Griffin said, “We are in the backyard of the most rapidly expanding consumption of lithium outside China, with most European vehicle manufacturers announcing their plans to go electric. The synergies are obvious, and at Lithium Australia we are well placed to take advantage of that expanding market.
”Our previous testing demonstrates that SiLeach® can unlock the potential of Sadisdorf as a true polymetallic operation, recovering lithium from the residues of conventional tin concentration processes. The size of the Sadisdorf resource is already significant, with the potential to feed a 25,000 tonnes per annum lithium carbonate plant for 10 years. Further exploration is likely to expand the resource significantly. It is noteworthy that Sadisdorf has higher grades than the nearby Cinovec deposit (Czech Republic) and is not far from the Zinnwald deposit of Deutsche Lithium.”
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