L1M working up Brazilian lithium targets
Today, our Brazilian lithium Investment, Lightning Minerals (ASX: L1M) announced positive initial soil sampling results from its Canabrava (previously Sidrônio) project in Brazil's Minas Gerais state, dubbed the "Lithium Valley" for its prospective hard rock lithium geology.
Here are two key points:
- Peak soil sample assays of up to 113ppm lithium returned from the priority target area in the western part of the project
- Multiple pegmatites and pegmatite float material identified during ground reconnaissance, confirming the presence of lithium-bearing geology
L1M also said finalisation of geophysics interpretation works are due imminently
Below you can see how L1M’s “lithium trend” extends out to the east of the project (yellow dotted lines = the lithium trend, pink lines = pegmatite subcrop and float):
(Source)
The good news here is that the lithium trend points in the direction of the rest of L1M’s project in Brazil:
(Source)
Here is where things get particularly interesting for us.
We did some digging through old LRS results, and found that pre-discovery in October 2021, LRS found stream sediment results on their Salinas South project:
(Source)
L1M returned similarly anomalous soil sampling results.
Now these LRS results were indicative of a lithium trend/corridor, that extended across Salinas South in a southwest to north east direction:
(Source)
L1M’s trend extends in a different direction, but its nice to see the company getting a good “whiff” of lithium in the area.
L1M’s results yesterday also revealed the company has multiple pegmatites on their project is usually a good sign.
The Colina discovery (the one that sent LRS flying up the charts) was made by LRS, as a result of drilling into pegmatites.
While there is no guarantee of success here, we’re Invested in L1M to repeat our success that we had with LRS.
We also note that Latin Resources’ Colina discovery, is part of a 26km trend, with Salinas South yet to be properly tested with a drill rig:
(Source)
L1M in yesterday’s announcement, also flagged that a release of geophysics interpretive works is due shortly, which L1M will overlay with the soil sampling results to further refine areas of interest and eventually help define a set of targets from drilling
We think L1M is making quick, low cost progress on the ground in Brazil, using low cost exploration techniques and we want to see drill targets emerge in this highly prospective lithium region.
Our hope is that L1M has drill targets ready to go, as the lithium market exits its “winter”, which we think would be very well received in those market conditions should L1M make a discovery.
So at a high level as a reminder:
- L1M has good anomalous lithium soil sampling results, similar to LRS’s results at a different part of the company’s projects, pre-discovery
- L1M’s lithium trend from these results is pointing in the right direction
What’s next for L1M?
🔄Geophysics interpretive results
This will help L1M in identifying new areas of interest at its Brazilian lithium project.
Beyond that, here’s what we are looking for next for L1M as part of Objective #1 from our L1M Investment Memo…
Objective #1: Find high priority drill targets
We want to see L1M conduct geochemical and geophysical surveys and determine the best drilling spots at its Brazilian lithium project.
Milestones
🔄 Geological mapping
🔲 Rock chip sampling
🔄 Soil sampling
🔲 Define high-priority drill targets
Source: 2 May 2024 L1M Investment Memo
Read our latest note on L1M here:
