Kidman Resources Limited (ASX: KDR) is a lithium developer. The Company, through a Joint Venture with SQM, develops the Tier-1 globally significant Mt Holland Lithium Deposit in Western Australia. A combined Mineral Resource Estimate in March 2018 confirmed Earl Grey’s position as one of the world’s most significant hard rock lithium deposits.
Kidman’s strategy is to address the burgeoning Electric Vehicle thematic as an integrated ASX-listed 1st quartile producer of refined battery-grade lithium.
In March 2018, Kidman updated its Mineral Resource Estimate (“MRE”) for the Earl Grey Lithium Deposit of 175 million tonnes at 1.50% Li2O, containing 6.49Mt of Lithium Carbonate Equivalent (“LCE”).
The 2017-18 Resource Definition and Exploration drill program has significantly increased both the grade and tonnage of the Earl Grey Lithium Deposit, and considerably de-risks the Resource inventory. The Earl Grey Resource will set a strong foundation for operations at Mt Holland, with the team still setting its sights on further discoveries and product-supply extension within the Mt Holland district of which Kidman Resources and its JV partner hold the most prospective ground.
The new Mineral Resource is based on an area measuring 2.1km by 1.3km. It has significant growth potential which is yet to be fully-explored, based on high-grade drill results on the periphery of the Resource boundary. Earl Grey has several qualities that lend the Mt Holland Project to becoming a long-life, low-cost open pit mining operation in the near-term, including:
- Flat lying geometry with increasing thickness at depth, maintaining a very low life-of-mine strip ratio
- High grade mineralisation, starting from the onset of mining within the fresh pegmatite and consistent grade, for the life of the project
- Capacity to expand the mining front, ensuring consistent feed to the concentrator even when demand in the market requires an expansion of feed material
- Significant additions still to be made around the Earl Grey Pegmatite and throughout the district, with prospects such as Bounty and Texas still to be defined or explored.
Importantly, confidence in the mineralised and geological continuity of the Resource has been increased and has now intersected lithium-bearing pegmatite at high grades at the north-eastern boundary of the Resource, providing significant scope for growth in resources as drilling continues to delineate the deposit. This underpins an additional Exploration Target of 20 – 40 million tonnes at 1.4 – 1.6 % Li2O.
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.