Riversgold Ltd (ASX:RGL) has decided not to exercise the option to acquire an 80% interest in the lithium rights for the Mt Holland Project in the Yilgarn Craton of WA, opting to instead save the $700,000 cash payment and focus exploration efforts on its Pilbara assets — Tambourah and Wodgina East — that have potential for a scalable discovery.
While the company’s exploration campaign at Mt Holland was successful in delineating high grade lithium in pegmatites in its first drill campaign, based on the overall project characteristics the company believes it is unlikely to be able to develop a stand-alone project at Mt Holland.
Not robust enough
Riversgold CEO Julian Ford said: “It was very encouraging to see the drilling results from Mt Holland in the recent days, however, grades and widths intersected were not considered robust enough to see us exercise the option.
“We have plenty of excellent lithium targets in the Pilbara and will maintain our exploration efforts up there. In these uncertain times, the board also felt it was also important to maintain a strong cash book and spend the $700,000 elsewhere on projects that had the potential for a scalable discovery."