Kidman Resources has announced that the next stage of drilling at Western Australia's Earl Grey Lithium deposit is progressing according to schedule.

Assay results from the first 12 holes reflect the continued high-grade nature and strong lithium mineral continuity in the maiden resource delivered in December 2016.

Metallurgical testwork is continuing as planned and a further detailed metallurgical update will be provided soon.

Holes KEGM0013-16 are still being processed onsite with observations of the geology consistent with all work performed to date.

Work undertaken by Kidman in first quarter of this year has focused on implementing its plan to progress to production as soon as possible. 

This work has included mine planning to determine the stage one mining area design, geotechnical drilling, logging and review and strength testing to ascertain the appropriate batter heights, angles, and berm widths. All these have so far indicated a highly optimal first stage open-pit.

"All these have so far indicated a highly optimal first stage open-pit."

Hydrogeology testing at the property was accomplished under external consultant supervision and has indicated that groundwater within the area is manageable. Substantial water sources have been confirmed that can be used for mining activity.

The conceptual mine design and processing pathways are being also explored.

Recently acquired tenements east of Earl Grey Resource will offer more flexibility for mine design, as well as potential for an upgrade in lithium resource endowment of Mt Holland, the site within that the Earl Grey deposit is situated.

Kidman Resources also stated that environmental studies at Mt Holland necessary for the submission of mining proposal application to the Western Australian Department of Mines & Petroleum are continuing to progress.

The company intends to re-assess the existing gold resource at Mt Holland by undertaking an extensive RC and diamond drilling programme.