Strategic Resource expansion drilling commences at Mt Marion
- Resource Definition drilling to significantly expand lithium resource commences;
- 102 holes for 5,960 m planned to be drilled;
- Upgraded Mineral Resource Estimate planned for completion in the September Quarter 2011; and
- Gresham Advisory Partners progressing strategic discussions with potential partners on downstream strategy.
Reed Industrial Minerals Pty Ltd (RIM), the subsidiary company of Australian diversified resources companies Reed Resources Ltd (ASX: RDR) (“Reed”) and Mineral Resources Limited (ASX: MIN) (“Mineral Resources”), continues to advance the Mount Marion Lithium Project in Western Australia towards a late 2011 production start-up.
Resource Definition Drilling Commences
A strategic resource expansion program has commenced with a view to extending the open pit mine life through the extension of existing deposits (50 holes) and the definition of new resources from outcropping pegmatite prospects (52 holes). The current exploration target is 10 – 15 million tonnes at a grade of 1.1-1.4% Li2O (ASX 15 June 2010).
A wide-spaced program testing the new prospects at Area 6 and No 4 Deposit will be completed first enabling in-fill holes to be designed whilst the holes extending the existing resources at 1, 2 and 2W Deposits are completed.
With completion of the drilling expected in the June quarter, Reed plans to update and report an upgraded mineral resource estimate in the September quarter.
It should be noted that this will not affect the previously announced timeline to commissioning in December 2011.
The drilling is being funded entirely by Mineral Resources as part of the reimbursable basis of the operational agreement for the development of the project.
Downstream Strategy
RIM, and its advisors, Gresham Advisory Partners Limited, are continuing strategic discussions with third parties in relation to various proposed transaction structures ranging from downstream toll treatment and/or joint ventures through to partial and outright acquisition of the upstream (spodumene concentrate) operations.
RIM has sought submissions from third parties to be available around the end of the current quarter.
It should be stressed that discussions remain preliminary and there can be no assurance that a binding proposal will emerge. Reed and Mineral Resources will keep the market informed as matters develop further.
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