Lanthanein Resources Ltd (ASX:LNR, OTC:FRNRF) has skyrocketed on entering into a pivotal farm-in agreement to earn up to a 70% stake in the Lady Grey Lithium-Tantalum Project, about 365 kilometres east of Perth in what the company claims is one of the most desired jurisdictions for lithium explorers in Western Australia.
The project is just 400 metres west of Covalent Lithium’s ‘highly prospective’ Earl Grey Lithium Mine containing 189 million tonnes at 1.53% of lithium resource.
Lady Grey's granted tenure spans 77 square kilometres with about 18 kilometres strike in the proven world-class Forrestania Greenstone belt.
Investors have responded positively to the critical minerals deal, sending shares 116.67% higher to $0.013 with more than 141 million changing hands by 12:40 (AEDT).
Looking ahead, the company plans to undertake a project-wide evaluation of lithium-hosting pegmatite potential with a drilling program planned for February-March 2024.
“Most desired jurisdictions”
Lanthanein technical director Brian Thomas said: “This transaction positions Lanthanein with a prospective lithium project in one of the most desired jurisdictions for lithium explorers in Western Australia.
“With credit to Lanthanein’s management team, the company has managed to secure the rights to earn up to a 70% interest over ~77 square kilometres of prospective ground, immediately adjacent to one of the largest operating lithium mines in Western Australia.
“Plans for evaluation and field work will commence immediately to assess the potential for lithium pegmatites and I look forward to undertaking discovery drill programs earmarked for early 2024.”
Project potential
The Lady Grey Lithium Project is on the Southern Cross-Forrestania Greenstone Belt in a proven Tier-1 lithium mining district.
Neighbours are major miners and developers including Covalent Lithium (Wesfarmers-SQM JV) – 189 million tonnes at 1.5% lithium Earl Grey Mine.
The venture benefits from the guidance of an experienced board, including Brian Thomas of Azure Minerals, renowned for their role in the Andover Lithium Project.
Rock samples from the sampling program in March 2022 returned elevated lithium up to 298 ppm, caesium up to 46 ppm, rubidium up to 1463 ppm and tantalum up to 783 ppm.
Lanthanein has entered into a binding farm-in agreement to acquire the right to earn up to a 70% legal and beneficial interest in EL77/2143 (and any other tenement that may be acquired/applied for by the parties) from Gondwana Resources Ltd in consideration for $1.5 million.
Forward plan
The next steps at Lady Grey include:
- drilling early 2024 (February-March);
- POW approved for 193 aircore and 50 RC drill holes;
- heritage approvals for expanded drill programs;
- extensive soil geochemistry program across other targets; and
- strong news flow expected through to late 2024.