Riversgold Limited (ASX: RGL) has signed a binding agreement granting it an option to acquire an 80% interest in the lithium rights to Exploration Licence E77/2784 in Western Australia.
The tenement lies immediately adjacent to the globally significant Mt Holland lithium mine, currently under development by Covalent Lithium, the joint venture between Wesfarmers Limited and Sociedad Química y Minera de Chile S.A. (SQM).
“This is a tremendously exciting deal for RGL. The new ground directly abuts Covalent Lithium’s Mt Holland Project, where they are actively developing their Earl Grey deposit which contains a resource of 189Mt at 1.5% lithium oxide (Li2O)1 . We believe there is great potential for the Earl Grey and Bounty systems to continue into the E77/2784 tenement,” CEO, Julian Ford, said.
The tenement consists of three parts:
- The largest part of the tenement sits 600m to the east of the Bounty lithium prospect, covers 8.47 sq. km and runs nine km north to south being 1.3km wide at its widest point;
- A smaller block of 0.15km2 wedged between the Mt Holland mining leases; and
- A right to minerals situated 15.0m below the Bounty Gold Mine Tailings Storage Facility (Bounty TSF).
The Bounty TSF is currently covered by a general lease where the residual environmental liabilities reside with Covalent Lithium.
The Mt Holland Project had originally identified an extension of the Bounty TSF as the preferred tailings dam for the Mt Holland Lithium Project.
However, sterilisation drilling between the historical Bounty gold open pit and the tails dam in late 2017 identified several significant lithium rich intersections, including 17.6m at 1.67% Li2O from 146m, showing that lithium mineralisation potentially extends east and into E77/2784.
For further information please visit: https://www.riversgold.com.au/
