TG1 completes sampling program at WA lithium project
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Our micro cap WA lithium Investment TechGen Metals (ASX: TG1) just finished a field sampling program at its Ida Valley lithium project.
TG1’s project sits ~50km to the north of Delta Lithiums Mt Ida lithium project.
Up until now the ground has mostly been explored for gold.
A few weeks back TG1 put out the results from old soil sampling data and defined a 2.2km by 1km lithium anomaly.
After that, TG1 did some field work and defined a ‘pegmatite field’ over ~800m x 400m.
Now, TG1 has gone back and done some more soil/rock chip sampling collecting ~1300 soil samples and ~41 rock chip samples.
TG1 expects to be drilling its project in Q1-2024.
What is TG1 chasing?
Typically, the way to make a lithium discovery is to:
- Map the ground and find pegmatites.
- Sample the pegmatites and confirm they have lithium mineralisation.
- Confirm the pegmatites contain spodumene.
- Drill into them and see if they form a big deposit.
More recently, companies across WA have started running soil sampling programs looking for lithium in areas where there are no obvious outcropping pegmatites.
Instead the strategy is to sample the soil, find areas where lithium grades are high and then drill beneath them to see if there are pegmatites underground.
Soil sampling is a pretty common method to generate drill targets when exploring for things like copper, nickel and gold but is just now starting to be used to find lithium.
It's the same process TG Metals (TG6) followed, eventually leading to its 13x re-rate.
Note: just because TG6 has performed well is not an indicator that TG1 will perform the same way. Early stage exploration is high risk.
Before its drill program a few weeks ago, TG6 had soil anomalies grading ~40-80ppm lithium oxide across a 4km x 1.5km area with no mapped pegmatites at surface.
TG Metals drilled under the soil anomalies and hit 9-12m intercepts with lithium grades up to 2.02%.
Off the back of that news, TG Metals share price went from ~10c per share to a high of ~$1.30 per share.
That's a re-rate of ~13x from the lows.
TG1 is in a similar position to where TG Metals was before drilling except TG1 DOES have outcropping pegmatites on top of its high grade lithium soil anomaly.
All that we need to see now is TG1 drill the project to see if it can make a discovery.
What’s next for TG1?
Assays from rock chips and soil samples (Pending) 🔄
TG1 has ~1300 different soil samples and over 40 rock chip samples pending assay results.
Heritage surveys and drill permitting (Q1 2024) 🔲
Drilling of high priority targets (Q1 2024) 🔲
After all of the sampling/mapping work is complete we want to see TG1 drill its best targets.