Pirra Lithium, one of Australia’s newest lithium explorers, has started drilling at its Spear Hill project in WA’s Pilbara Craton region, testing a 1.2km stretch of outcropping lithium pegmatites where rock chips previously returned assays grading up to 2.34 per cent lithium oxide.
Pirra Lithium, a 50-50 JV between Calidus Resources and Haoma Mining, was founded in February to develop potential lithium assets in the Pilbara.
The venture will allow Calidus to focus on its high-grade gold portfolio whilst maintaining exposure to the developing lithium market.
The initial drill program will drill 38 holes for about 3,000m over the primary pegmatite outcrop and a second poorly exposed pegmatite in the north of the Spear Hill project area. The work will take place about 50km south-west of Marble Bar, part of the historic Shaw River field that was mined for alluvial tin from 1893–1975.
The main pegmatite target is about 3km east-north-east of Spear Hill and is following up assays ranging from 0.66–2.34 per cent. There is also a pending exploration licence in play.
Calidus believes Spear Hill has excellent potential, indicated by the high-grade lithium rock-chip results seen earlier this year. It is concurrently evaluating the lithium prospectivity across the wider Spear Hill area and the rest of Pirra’s acreage, using remotely sensed data, field mapping, and rock-chip sampling.
Calidus Resources Managing Director, David Reeves said: “The commencement of the maiden drill program so soon after the initial discovery demonstrates the Company’s determination to accelerate exploration progress at the project.”
“Exploration to date has only tested a fraction of the large tenement package and rights owned by Pirra Lithium and we are excited to unlock the full potential of the Pilbara.”
Reeves says the program has been designed with bore holes intersecting the pegmatite as near to perpendicular as possible. Several holes will be drilled into the footwall and others through the hanging wall to test for other parallel or subparallel pegmatites.
The drilling program is expected to take about three weeks.
The creation of Pirra allows the Mark Connelly-chaired Calidus to concentrate on its high-grade gold portfolio whilst still maintaining exposure to lithium that has set the market ablaze in recent times on the back of surging global demand to supply the electric vehicle industry.
Connelly’s track record includes the US$570 million merger of Papillon Resources with B2 Gold Corp in 2014 and the US$600 million merger of Adamus Resources with Endeavour Mining in 2011. He was instrumental in the development, construction and commissioning of Endeavour’s Nzema gold mine in Ghana.
The Pilbara craton is shaping up to be one of the world’s major lithium and tantalum provinces, taking in the behemoth Wodgina and Pilgangoora lithium projects alongside Global Lithium’s nearby Archer deposit.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
