Perth, Jan 27, 2009 AEST (ABN Newswire) - Emerging lithium producer Galaxy Resources Limited (ASX:GXY) is pleased to announce that it has been granted Mining Leases ML74/155 and ML74/182, which surround the Mt Cattlin lithium and tantalum resource near Ravensthorpe in Western Australia.
Mining Leases ML74/155 and ML74/182 are contiguous with ML74/12, which hosts the bulk of the Mt Cattlin lithium and tantalum resource which already supports a 15 year mine life for a 1m tpa operation. In addition, the recently granted Mining Leases are highly prospective for additional pegmatite-hosted lithium and tantalum mineralisation, and drilling targeting further extensions of the known resource is planned for early next year. As noted in press releases on 4/12/08 and 24/12/08, the Mt Cattlin resource is still open in several directions. Grant of these leases will enable the Company to proceed with further step out drilling and potentially increase the resource base.
Galaxy Managing Director Iggy Tan said the Company believed there was significant
potential to expand the resource at Mt Cattlin. "We're very happy to have obtained leases to mine the area surrounding Mt Cattlin, which is considered prospective for further lithium-bearing pegmatites," said Mr Tan. "An independent resource estimation completed at the M74/12 Mt Cattlin deposit in 2007 indicates a contained mineral resource of 2.03 million tonnes of spodumene and 6.62 million pounds of Ta2O5.
"Additional infill and extension RC drilling at M74/12 has returned a number of significant intersections and now with the ability to explore the surrounding area we believe there is potential to significantly grow the known resource. "We look forward to proceeding with exploration of ML74/155 and ML74/182 and hopefully bringing further value to the Mt Cattlin lithium and tantalum project.
Every 1 million tonnes added to project mine life increases the project Net Present Value (NPV) by A$12 million" he said. Priority drill target areas include:
1) Southwest Extensions - drilling in this area has returned a number of significant intersections, including 13m @ 1.56%Li2O in drill hole GX903 (reported 24/12/08). Drilling has until now been constrained by the tenement boundary of ML74/12, but can now be extended to the west and southwest.
2) Northwest and North Extensions - drilling on the margins of the resource in this area has intersected a dolerite dyke, but no drilling has yet been completed to the west of the dyke. Follow up work in this area to the west and north of the current resource is planned.
3) NE Extensions - there is an area on ML74/155 northeast of the current resource which has undergone limited historic drilling. This work intersected significant zones of pegmatite, which unfortunately were not assayed for lithium at that time. It is likely that this pegmatite is lithium-bearing and there is considered to be significant potential to extend the resource in this direction.
In addition, to immediate resource extensions, the granted tenements are considered highly prospective for further lithium-bearing pegmatites that may be concealed under shallow cover. The grant of other, additional prospective mining leases surrounding Mt Cattlin is still awaited, but Galaxy's current lease holding provides ample scope for development of current resources, including the Dowling pit (providing 5 years mine life) and all required site infrastructure.
About Galaxy Resources Limited
Galaxy Resources Limited (ASX:GXY) (OTCMKTS:GALXF) is an international S&P / ASX 200 Index company with lithium production facilities, hard rock mines and brine assets in Australia, Canada and Argentina. It wholly owns and operates the Mt Cattlin mine in Ravensthorpe Western Australia, which is currently producing spodumene and tantalum concentrate, and the James Bay lithium pegmatite project in Quebec, Canada.
Galaxy is advancing plans to develop the Sal de Vida lithium and potash brine project in Argentina situated in the lithium triangle (where Chile, Argentina and Bolivia meet), which is currently the source of 60% of global lithium production. Sal de Vida has excellent potential as a low cost brine-based lithium carbonate production facility.
Lithium compounds are used in the manufacture of ceramics, glass, and consumer electronics and are an essential cathode material for long life lithium-ion batteries used in hybrid and electric vehicles, as well as mass energy storage systems. Galaxy is bullish about the global lithium demand outlook and is aiming to become a major producer of lithium products.
| ||
|
