Tenements over Quickbird image.
Perth, July 1, 2009 AEST (ABN Newswire) - Emerging lithium producer, Galaxy Resources Limited (ASX:GXY) today announced it has signed a 100% purchase agreement for a block of tenements north of Mt Cattlin resource from Vistarise Limited for A$100,000. The tenement block, which includes E74/400, P74/307 and P74/308 is contiguous with Galaxy's Mt Cattlin tenements as well as Galaxy's Mining Lease application M74/197.
Managing Director, Iggy Tan said that the ground covers a similar geological sequence to that of Mt Cattlin and that the occurrence of scattered pegmatites at surface suggests there is potential for more substantial and continuous pegmatite bodies at depth.
"We're pleased to be able to increase our tenement holding in the region," said Mr Tan. "The occurrence of spodumene at surface indicates the area has potential for complex, lithium tantalum-bearing pegmatites."
Much of the tenement block is covered by cleared farmland including ploughed paddocks with limited outcrop. The mapping by Geological Survey of Western Australia (GSWA) shows scattered outcrops of pegmatites near the eastern edge of the tenement package, and extending onto the purchased ground. Spodumene has been reported in an outcropping pegmatite in the area.
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.
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