AKE shares were down more than 3% in late Wednesday trade in response to the update, which detailed three phases of resource reserve drilling in high-grade lithium zones.
AKE shares are up 70% over the past 12 months.
Source: Trading View
Allkem’s Mt Cattlin operations, phases, and stages
On Wednesday, AKE outlined its recent resource extension drilling program at its Mt Cattlin project in WA with the figures to date.
The drilling extension program, currently underway at the site, consists of three distinct phases:
- Phase 1 covering 2NW pit shell resource reserve conversions across 49 holes in 11,120 metres, is now 77% complete
- Phase 2, downwards north of Phase 1 consists of 80 holes within 19,125 metres, and is currently 55% complete
- The final phase, SW of mine tenements, is to be around 80 holes over 19,125 metres and is expected to begin later this year to early next year
Allkem provided the following highlights today:
- ‘Phase 1 drilling is targeting to convert 3.2Mt of Resource to Reserves. Intercepts within this pit include high grade zones with large thicknesses such as 12m at 2.46% Li2O and 15m at 1.91% Li2O
- ‘Phase 2 drilling and assay results demonstrate resource extension potential to the north of the current pit with high grade intercepts in the lower pegmatite, including 9m at 2.98% Li2O and 7m at 1.86% Li2O
- ‘Phase 1 and 2 drilling at 2NW pit is on target for completion by end of October and a consultant has been engaged to immediately commence a study to convert mineral resources to Ore Reserves for scheduling, mine planning and detailed pit design
- ‘Mt Cattlin’s Mineral Resource tonnage recently increased 21% to 13.3Mt @ 1.2% Li2O and 131 ppm Ta2O5’
Another three-phase resource extension program, consisting of reverse circulation drilling, took place between April and September, covering 147 holes across 32,685 metres.
So far, 81 drill holes across 19,177 metres have been completed, with results for 47 drill holes made publicly available.
Allkem explained pegmatite mineralisation has surfaced within existing assays, with consistent lithium content matching older assays across Mt Cattlin’s Northwest Pit.
So far, the miner is unable to provide any conclusive reports, but describes the recent assay results as ‘highly encouraging’.
Source: Allkem
A glimpse into Allkem’s future
Allkem expects Phase 1 pit targets to conclude by the end of October.
It has lined up local consultants Entech to manage the open pit project, oversee feasibility studies, and execute next-step operations.
AKE said it is drawing up plans for follow-up diamond drilling and looking into extending and facilitating geotechnical and metallurgical studies, all of which are to begin this month.
Allkem hopes to boost ore reserve schedules, improve mine planning and pit designs for the NW pit, while carrying out a scoping study for possible opencut or underground options to further Phase 2. Stating:
‘On completion of the drilling at the NW pit, the focus will shift to Phase 3 and further definition in the SW part of the reasonable prospects of eventual economic extraction (RPEEE) footprint and lead to programs that test pegmatite continuity in areas previously not included in resource and mineral resource modelling’.
ASX lithium stocks — is the bull run over?
In 2021, junior lithium stocks like Sayona [ASX:SYA] and Lake Resources [ASX:LKE] were some of the top performers on the All Ords.
Now, however, both LKE and SYA are well down from their 52-week highs.
While trading in lithium stocks is less exuberant in 2022, demand for the actual white metal remains strong.
So are any overlooked lithium stocks out there still?
Our latest research report on the lithium industry suggests yes.
Get a free rundown of three Aussie neglected lithium stocks worth checking out here.
Regards,
Kiryll Prakapenka,
For Money Morning
