Resource drilling at Mt Marion Lithium Project yields positive results
HIGHLIGHTS
• A third phase of resource definition drilling confirms high-grade pegmatites at the No 4. Deposit and at a new location - the Area 6 Prospect.
• Average intercepts of high-grade mineralisation for these two areas is 9.5m at 1.44% Li2O and 1.18 % Fe2O3, using 0.4% Li2O lower cut-off grade.
• Results will be received during May for resource infill and extension drilling at Deposits 1, 2 and 2W for which resources have been previously announced.
• Resource estimate planned for completion by September 2011.
Australian diversified resources company Reed Resources Ltd (ASX: RDR) (the “Company” or “Reed”), together with partner Mineral Resources Limited (ASX: MIN) (“Mineral Resources”), continue to advance the Mount Marion Lithium Project, located in the goldfields region of Western Australia. The Mount Marion Project is on schedule for commissioning in the December quarter 2011 with initial capacity of 200,000 tpa of 6% Li2O chemical grade spodumene concentrate, 60,000 tpa of mica and 30 tpa tantalite concentrate. Total contained lithium oxide resources at present are 146,000 tonnes (Li2O).
A third phase strategic resource expansion program was completed at Mt. Marion during March and April with a view to extending the open pit mine life through depth and strike extensions of existing deposits No.1, 2 and 2W on M15/100 (49 holes) and the definition of new resources from pegmatite prospects at the No.4 Deposit and at Area 6 (61 holes). The drilling had the purpose of exploring for new resources on M15/999 at Deposit No.4 previously tested by WMC in 1971 with four shallow percussion holes and at the new location, Area 6 in the southern part of M15/1000 in a covered area where there is very little outcropping pegmatite. (Figure 1of the ASX announcement).
A total of 110 holes were drilled for an aggregate of 7,093 metres at the five locations. The spacing of the holes ranged from 40 to 50 X 30 metres at Deposit No. 1, 40 X 40 metres at Deposit No’s. 2, 2W and 4, and 40 X 160 metres at Area 6. Results have been received for 59 of the 110 holes drilled.
At the No. 4 Deposit the average thickness of the intercepts was 7.5 metres where the pegmatite forms a sill that dips at 10o to the west. The Deposit has been drill tested over a strike length of 300 metres and a down dip distance of 150 metres to an average vertical depth of 60 metres. The Deposit is open along strike to the north as well as the south and down dip to the west. The best intercept was 14 metres @ 1.34% Li2O in MMP 434 when using a cut-off grade (“COG”) of 0.4% Li2O.
At Area 6 the pegmatite intercepts were restricted to the two northern traverses some 160 metres apart of the four traverses that were drilled. The best result was a combined intercept of 26 metres @ 1.59% Li2O where two pegmatite intersections were separated by an internal 7 metre zone of ultramafics using a COG of 0.4% Li2O. The pegmatite intercepts on the northern line form a flat lying structure. The overall structure of the pegmatites at Area 6 is being interpreted.
At Deposit No.1 single vertical drill holes on 30 metre spaced traverses have further tested the pegmatite resources down dip to the west extending the coverage from the previous 200 metres out to 240 and 250 metres. Results have been received for single holes on nine traverses from the south end of Deposit No.1. These holes extend over a strike length of 240 metres and have tested for pegmatite down to an average vertical depth of 90 metres. The average thickness of the pegmatite sill intersected in these holes is 18 metres. The best result was 27 metres @ 1.53% Li2O in MMP1126 when using a COG of 0.4% Li2O.
FORWARD WORK
The results for all of the remaining holes at Deposit Nos. 1, 2 and 2W are expected to be received by the end of May. Drill results are being compiled and validated for inclusion in the database from which an updated geological model of the Mt Marion deposits will be constructed in preparation for resource estimation by September 2011. A final phase of infill and extension drilling for Deposit 4 and Area 6 is being planned.
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