Kali Metals Ltd (ASX:KM1) has expanded its Lachlan Fold Belt portfolio in NSW, adding a 226 square kilometres strategic landholding with tin-tungsten and lithium-caesium-tantalum rights to the Jingellic Lithium Project in the state's south.
Kali entered into a binding acquisition agreement with Mining and Energy Group (MEG) to add the group’s tin-tungsten and lithium-caesium-tantalum rights at strategic tenement EL8958, which sits at the northern end of its broader Lachlan Fold Belt Project area.
The new tenement rights “fill the geologic gap” in Kali’s Jingellic Lithium Project and allows for continuous exploration across the Lachlan Fold Belt Project.
Previous exploration over the tenement highlighted tin anomalies along regional fault lines that run the length of the tenement.
Kali has agreed to pay MEG the $225,000 option fee in scrip consideration, with the issue price based on the volume-weighted average price of Kali shares over the 30 trading days prior to the option expiry date.
Favourable setting
With this favourable geological setting, the company says it is looking forward to expanding its current exploration program to incorporate this new prospective land holding.
Kali managing director Graeme Sloan said: “The addition of EL8958 is an important part of our exploration plans for the Jingellic Lithium Project.
"It not only links what was previously two separate tenement packages but provides an entirely new exploration front with a number of tin anomalies extending throughout the tenement. Tin is seen as a positive geological indicator for lithium.
“The acquisition adds another 226 square kilometres to the Jingellic Lithium Project and will make exploration in the area more cost-efficient given the now contiguous nature of the combined tenements."
Exploration continues
A geochemical soil sampling program is now underway on Sweetwater Station in the southeast region of the Jingellic Project. It consists of up to 600 samples with a spacing of 150 metres by 150 metres and is expected to take six to eight weeks to complete.
This area is known to hold the local landmark called the 'Giant Pegmatite' and a recent field trip was taken to the site to reconfirm its existence," said Sloan.
“At Sweetwater Station, results from our first-ever soil sampling program are eagerly awaited. The Sweetwater area contains what is colloquially known as the 'Giant Pegmatite' which is targeted for follow-up work once approvals are in place. The results from the soils program are expected to be available during Q2 2024.”
The Giant Pegmatite outcrop.
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