Metalicity Limited has acquired a prospective lithium exploration portfolio in the Pilbara region of Western Australia from Fortescue Metals Group.
The acquisition includes the Lynas Find North Lithium Project. This project comprises three granted tenements covering an area of around 51km² in the Pilgangoora Greenstone Belt.
The project is located around 8km from the Pilbara Minerals Pilgangoora lithium deposit.
Within the project, lithium bearing pegmatites have been identified, although systematic exploration was not undertaken.
Initial investigations found high-grade intercepts, including 21m at 2.64% towards 500m to the south.
Metalicity Limited managing director Matt Gauci said: “The agreement provides the company with exciting new additional lithium targets in the world-class Wodgina/Pilgangoora district.
“Our exploration activities in the region are quickly gathering momentum with drilling completed at Stannum, drilling planned at Turner River and exploration teams immediately mobilised to commence an on-the-ground evaluation of Lyas Find North.”
Currently, exploration is underway at the Pilbara Minerals high-grade Lynas Find spodumene deposit located 500m south from the acquired tenement. This review and exploration will help to identify drill targets.
Metalicity expects to start drilling in the first quarter of 2017.
The transaction with Fortescue Metals was settled through a combination of cash and Metalicity securities.
Under the agreement, Metalicity will pay A$250,000 ($181,470) with five million fully paid ordinary shares after the settlement.
An Australian mining exploration company, Metalicity focuses on base metal sector. Currently, it is developing the Admiral Bay Zinc project in the country's north-west.