Up to 50% of costs associated with the direct drilling and mobilisation of Aurumin Ltd (ASX:AUN)'s Mt Palmer Lithium Project are set to be covered by an Exploration Incentive Scheme (EIS) grant from the WA government.
High-priority lithium targets
The company’s subsidiary, Aurumin Mt Palmer Pty Ltd, has successfully applied for and executed the agreement with the Department of Mines, Industry Regulation and Safety (DMIRS) – which provides for up to $150,000 in funding, awarded through a competitive process – and is readying the drills.
The EIS government initiative was set up to encourage exploration in Western Australia for the long-term sustainability of the state’s resources sector. It has already funded scores of mining projects in the region.
Permitting has been granted for all target areas, and the planned holes focus on high priority lithium targets defined by geochemical anomalism and geological setting.
A granted Program of Works (PoW) has been received for proposed drilling under the funding agreement – previous orientation drilling collar locations were limited by permitting constraints.
The company will test targets picked out from geochemical multielement soil anomalism with lithium results of up to 146 parts per million (ppm) lithium and resampled historical drill spoils returning tantalum results of up to 391 ppm tantalum. The targets are located further within what is known as the Goldilocks Zone.
Diamond drilling for depth
Reverse circulation (RC) drilling has in the past intercepted multiple flat-lying pegmatites, extensive pathfinder elements and low-level lithium, but it was ultimately unsuccessful in drilling below 100 metres because of the ground conditions and water ingress.
For this reason the company plans to go in with the diamond drill, with tails to be drilled vertically to a nominal depth of 250 metres, so that it can properly test for interpreted broad flat-lying pegmatites.
“Mt Palmer is prospective for lithium mineralisation and shows great potential, remaining unfinished business for the company since we announced results from orientation drilling in June last year,” Aurumin managing director Brad Valiukas said.
“The EIS funding is a competitive process and excellent recognition of the lithium potential at Mt Palmer and the work completed to date, and we believe Aurumin was the only successful applicant for lithium exploration in the current funding round.
“Sandstone has been the priority for exploration activity, however with both the EIS funding and drill for equity agreement with Topdrill, we can get out and complete this work in parallel with our main gold-focused activities at Sandstone and Mt Dimer.”