Global Lithium Resources Ltd (ASX:GL1) is trading higher after a mineral resource update for the Manna Lithium Project 100 kilometres east of Kalgoorlie in Western Australia revealed a 24.1% increase in contained lithium oxide to 406,000 tonnes.
The updated mineral resource estimate (MRE) demonstrated a 10% increase in tonnage to the 100%-owned project to 36 million tonnes as well as a 13% increase in lithium oxide grade to 1.13% Li2O.
Scope for expansion
There is also considerable scope to expand the resource further with the deposit remaining open in all directions.
In a bid to source more resources at Manna, the company has planned a large-scale, 50,000-metre drilling program that will start in the coming weeks and extend throughout 2023 and into 2024.
Global Lithium managing director Ron Mitchell said the growing resource demonstrated that Manna had great potential to become one of the most important near-term lithium projects in Western Australia.
Shares higher
Investors have also welcomed the additional lithium resources with shares on the ASX as much as 7.8% intraday to $1.73 while the company’s market cap has grown to approximately A$445.55 million.
“The company is excited with this significant mineral resource upgrade at our 100%-owned Manna Lithium Project and it’s a great outcome following the extensive exploration program we undertook safely during 2022," Mitchell said.
The location of the Manna Lithium Project and associated tenements.
MRE update details
The MRE update was completed by Snowden Optiro and reported in accordance with the guidelines of the JORC Code and above a natural cut-off grade of 0.60% Li2O.
It incorporates about 5,000 outstanding assay results from the company’s 2022 exploration program that were not available at the time of the previous MRE cutoff.
This expanded the existing Manna lithium resource by 233% on the previous resource estimate and was built on drilling results received up to a mid-November 2022 cutoff.
The new drilling data along with an improved internal resource domaining program has led to a significant increase in lithium oxide grade and tonnage over and above the December 2022 Manna MRE.
Some of the outstanding assays from the 2022 drilling program, now incorporated into the latest MRE upgrade, include:
- 17 metres at 1.60% Li2O from 114 metres;
- 15 metres at 1.20% Li2O from 107 metres;
- 13 metres at 1.40% Li2O from 34 metres;
- 10 metres at 1.33% Li2O from 227 metres; and
- 12 metres at 1.24% Li2O from 282 metres.
The drilling database used to define the MRE update comprises 207 reverse circulation (RC) drill holes for a total of 43,676 metres, 12 RC holes with diamond tails for 6,491.09 metres and 12 diamond drill holes for 1,455.81 metres.
Project studies
In parallel with ongoing exploration, the company is concurrently progressing definitive feasibility studies to progress Manna development.
"The mineral resource upgrade at Manna provides us with a compelling base to further progress various studies for the project, with an additional mineral resource update expected in H1 CY2024, which will include the results of a 50,000-metre drilling campaign soon to get underway,” Mitchell added.
"2023 is shaping as another transformative year in the development of Global Lithium.”