Perth, July 1, 2009 (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) is an Australian-based integrated lithium mining, chemicals and battery company listed on the Australian Securities Exchange and is a S&P/ASX 300 Index Company. Galaxy wholly owns the Mt Cattlin project near Ravensthorpe in Western Australia where it mines lithium pegmatite ore and processes it on site to produce a spodumene concentrate and tantalum by-product. At full capacity, Galaxy will produce 137,000 tpa of spodumene concentrate and 56,000 lbs per annum of contained tantalum. The concentrated spodumene is shipped to Galaxy's wholly-owned Lithium Carbonate Plant in China's Jiangsu province. Once complete, the Jiangsu plant will produce 17,000 tpa of battery grade lithium carbonate, the largest producer in the Asia Pacific region and the fourth largest in the world.
Galaxy is also advancing plans for a lithium-ion battery plant, to produce 350,000 battery packs per annum for the electric bike (e-bike) market. The Company also has a farm in agreement with TSX-listed Lithium One Inc to acquire up to 70% of the James Bay Lithium Pegmatite Project in Quebec, Canada.
Lithium compounds are used in the manufacture of ceramics, glass, electronics and are an essential cathode material for long life lithium-ion batteries used to power e-bikes and hybrid and electric vehicles. Galaxy is bullish about the global lithium demand outlook and is positioning itself to achieve its goal of being involved in every step of the lithium supply chain.
Contact
Iggy Tan Managing Director Tel: +61-8-9215-1700 Mob: +61-419-046-397
Galaxy Resources Limited
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