Kidman Resources Ltd (ASX: KDR), a precious and base metals company holds the Tier-1 Globally significant Earl Grey Lithium Deposit (128Mt @ 1.44% Li2O) as well as the 1 Moz Mt Holland Gold Project located centrally within the Forrestania Greenstone Belt near Southern Cross of Western Australia.
In December 2016, Kidman released its maiden resources establishing the Earl Grey resources as a World Class Lithium Deposit. With over 61% contained in the Indicated category, Kidman announced the Maiden Combined Mineral Resource of 128Mt at 1.44% Li2O for 1.84Mt lithium oxide (4.54Mt Lithium Carbonate Equivalent).
The Resource is based on an area measuring 1.4km by 900m; However, drilling has intersected the pegmatite 600m north of the current Resource boundary.
An additional Exploration Target of 75 – 100Mt at 1.3 – 1.5% Li2O identified in a zone of pegmatites extending for at least 600m north from the boundary of the Resource, and remaining open.
“The Exploration Target potential quantities and grades are conceptual in nature and there has been insufficient exploration to date to define a mineral resource. It is not certain that further exploration will result in the determination of a Mineral Resource under the “Australian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves, the JORC Code” (JORC 2012). The Exploration Target is not being reported as part of any Mineral Resource or Ore Reserve”.
The large scale and high grade of Earl Grey propels it into the ranks of tier-1 lithium deposits globally, and the largest hard-rock lithium resource on the ASX.
RC and diamond drilling will continue for the beginning of 2017, focusing on testing the down-dip extent and below the historic Earl Grey gold mine waste dump.
Metallurgical test work is continuing, with initial results released in early Q1 2017 and ongoing testing as the drilling campaign proceeds.
In order to expedite the processing and sale of the *potential spodumene product, Kidman has secured an exclusive right to *potentially process its Lithium ores at the Lake Johnston 1.5Mtpa concentrator owned by Poseidon Nickel. Under the agreement, Kidman has the exclusive option to lease the Lake Johnston plant, located approximately 100 kms away from Earl Grey, for three years during which time it is envisaged that a plant will be built at the Mt Holland site, benefiting from the knowledge and experience it gains from operating the Lake Johnston plant.
Kidman will continue with its exploration programme to test extensions to the high-grade Blue Vein deposit with a significant RC and Diamond drilling program, followed by an update to the feasibility study undertaken by previous operators.
In the 2015, Kidman acquired the Coolgardie Project including the Burbanks Gold mine, south of Kalgoorlie in WA, with the aimof returningthe deposit to its former glory and re-commenced production during the end of the September Quarter 2015. During November 2016, Kidman announced a binding agreement for the sale of the Burbanks project to Resources & Energy Group Ltd (ASX: REZ).
Kidman also has a strong portfolio of projects that has been assembled in proven and emerging mineral provinces both in NSW and the NT.
The Barrow Creek Project, NT is an advanced poly metallic exploration project with a maiden Resource defined by Kidman. It is strategically located near major infrastructure and presents sound potential for a viable future operation. The project is made up of the Home of Bullion (Cu, Pb, Zn, Ag, Au) deposit and Prospect D (Ni, Cu) exploration sites.
In New South Wales, Kidman Resources has the Crowl Creek Project, host to numerous projects such as Murrays (Au) Blind Calf (Cu, Au) and Three Peaks (Cu, Pb, Ag) in the southern extent of the World renown Cobar Basin. This area hosts deposits such as the Hera and Nymagee Mines (YTC Resources), further north east the Peak Mine (New Gold) and CSA Mine (Glencore), and postioned adjacent to the tenements is the Cu/Pb/Zn/Au deposit of Mineral Hill (KBL Resources).
Further to the East, Kidman owns the Browns Reef Project in the southern part of the Cobar Basin (Zn, Pb, Ag, Cu) with a deposit extending 2.5kms and remains open in all directions. The company defined an Exploration Target in December 2014 with the view to providing a maiden resource in the near future.
Kidman has a firm commitment to maximise shareholder value through utilising cutting edge mining, milling and exploration methods, spending money in the ground, and delivering results.