Phase 2 in Mexico gets green light The company's joint venture partner at the Electra project in Mexico, Alix Resources, has now accepted the Phase 2 proposed budget.
This will initiate a drilling program at its newly discovered Agua Fria site within Electra containing lithium-rich clay formations. Electra is being targeted for interpreted extensions of the lithium-bearing clays that extend from the Sonora Lithium Project.
Sonora is one of the world's largest lithium resources held in joint venture between Bacanora Minerals Ltd (CVE:BCN) and Rare Earth Minerals plc (LON:REM). Highlights of the Agua Fria discovery include:
- Significant lithium-rich clay layers identified southwest of the large Tule Concession within the Electra lithium project;
- Clay horizons traced for 4.5 kilometres on strike, with indications of width attaining over 800 metres;
- Apparent thickness of target layers reaching 20-30 metres; and
- Assays up to 1,190ppm lithium and additional assays are pending.
The Electra Project is presently owned 25% by Lithium Australia and 75% by Alix Resources.
Lithium Australia may earn up to 65% by contributing to various project expenditures and making progress payments in cash and shares.