Johannesburg - Junior miner Tawana Resources’ shares lifted 7.14 percent on the JSE on Friday after the dual-listed company announced that the infill drilling at the Bald Hill lithium project in Western Australia was almost complete.
Tawana said it had completed 193 resource drill holes since December 28 last year. Three rigs are operating on site, the company said.
Tawana Resources managing director Mark Calderwood said the infill drilling for the initial lithium resource estimate was essentially complete, with the resource estimation work already under way.
“The results should lead to an increase in existing tantalum resources and reserves,” Calderwood said. “The geometry of the pegmatites allows access to near-surface medium-high grade ore, within current permitted pit design, for initial production.
“Though there is significant strike potential for the spodumene pegmatites on the Bald Hill tenements, the aim is to complete the short term mine plan during April on the maiden resource in order to meet the October 2017 commissioning deadline.
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Drilling is expected to continue for some months and it is anticipated that further
resource upgrades will be provided over the course of 2017.”
The drilling is part of the company’s plans to start producing spodumene - which is a pyroxene mineral, consisting of lithium, aluminium and
inosilicate, and is a source of lithium - by the end of this year.
Tawana said it expected the spodumene market to be strong this year and next year because of little confirmed spodumene production coming on-stream to meet demand.
The JSE and the Australian Securities Exchange-listed company last year raised $7.2 million (R93.58 million) through a share issue in order to fund its lithium projects, including the Bald Hill project.
Singapore-listed Alliance Mineral Assets owns the Bald Hill project.
Tawana’s shares on Friday closed at R1.50 a share.