ASX newcomer Kali Metals announced its highest grade lithium results yet ahead of its first presentation as a listed company.
Kali listed on the ASX on January 5 after a heavily oversubscribed initial public offering that closed within hours, raising $15 million.
“And we could have raised that several times over,” Kali managing director Graeme Sloan told the RIU Explorers Conference in Fremantle.
A spin-off of Kalamazoo Resources and Toronto-listed Karora Resources, Kali attracted attention when ASX 100 lithium and iron ore producer Mineral Resources invested in the IPO.
MinRes held just under 10% of Kali when it listed and has increased its stake to 14% since via on-market purchases.
Kali owns ground in the Higginsville lithium district, just south of MinRes and Ganfeng Lithium’s operating Mt Marion mine and to the northwest of MinRes’ newly acquired Bald Hill mine.
The company had reported rock chip samples grading up to 3.69% lithium oxide at its Spargoville project but bettered that today with a rock chip grading 5.05% from the Flynn-Giles prospect.
“They’re some big numbers,” Sloan said.
Flynn-Giles sits within a 2km-long soil anomaly.
Other new results reported today included 2.64% lithium oxide at Flynn-Giles and 2.57% at the Parker-Grubb anomaly to the west.
“This area is certainly looking very good for us,” Sloan said.
At the Widgiemooltha project, the company also reported rock chip results of more than 2% lithium oxide at two separate prospects.
Soil sampling will continue across eight prospects at Higginsville with reverse circulation drilling to begin at Spargoville later in the current half.
Kali also has ground in the Pilbara, a region Sloan describes as “the land of the giants”.
Its DOM’s Hill and Marble Bar projects are adjacent to Pilbara Minerals’ Pilgangoora and MinRes and Albemarle’s Wodgina mines.
Those projects are subject to a joint venture with Chilean lithium giant SQM, which can earn 70% by spending $12 million over four years.
On the east coast, Kali has tenements in the Lachlan Fold Belt.
All up, the company holds 3854 square kilometres of ground, in what Sloan describes as one of the best hard rock lithium exploration packages in Australia.
“If you want to take something away, it’s that massive land package.”
