Oar Resources Limited (ASX: OAR) has signed a Binding Option Term Sheet with Denchi Pty Ltd and First Standard Minerals Pty Ltd for the 100% acquisition of a lithium project near Wiluna in Western Australia.
The Project is targeting pegmatite hosted lithium mineralisation, with initial indications pointing to the existence of Lithium-Caesium-tantalum (LCT) pegmatites. This type of pegmatite is the same host rock found at several key lithium projects including Pilbara Minerals’ Pilgangoora project and Talison’s Greenbushes operation.
The Project covers a combined area of 217.7 sq. km across one granted tenement (EL53/2198) and two tenement applications (ELA53/2229 and ELA53/2230).
Located approximately 50km west of Wiluna in the Northern Goldfields of WA, the project lies 120km north-west of Liontown Resources’ Kathleen Valley lithium deposit, which holds a current Mineral Resource Estimate of 156Mt at 1.4% Li2O and 130ppm Ta2O5.
Historic lithium and rubidium anomalies, along with the presence of other minerals common in LCT pegmatites, were recorded in rock chips taken in 2019, which were provided to the Company by Denchi and verified using DMIRS’ historic exploration reporting system, WAMEX.
Recently completed reconnaissance by the company has confirmed the presence of pegmatites at the location of the historic rock chip samples. Sixteen samples were collected by the company’s geological team at the site of the historic samples and at numerous outcropping pegmatite dykes up to 500 metres from the initial anomalism.
This exciting lithium project will add to our strategy of developing Oar Resources into a battery metals focused company,” Executive Chairman, Chris Gale, said.
“OAR currently has a graphite project in South Australia, now with a lithium project in our stable we have two key battery metal elements to focus on, then hopefully develop to the next stage of drilling out a resource.
“The Denchi Project is in proximity to large, established lithium projects. The historic rock chip sample data, as well as our initial reconnaissance completed last month, which identified outcropping pegmatites, have demonstrated the project is prospective for LCT pegmatites and warrants imminent exploration activities.
“We see this project as a valuable addition to our stable of critical mineral assets that are in demand globally as the race for renewables continues to accelerate.”
Targeting Exploration
Geophysical and remote sensing data including ASTER, visible/near infrared [VNIR], shortwave infrared [SWIR] and longwave infrared [LWIR] imagery has been processed and interpreted by a specialist external consultant, allowing targeted exploration to commence without delay.
Next steps
Further reconnaissance mapping across the project tenements will guide a systematic, project-wide mapping and rock chip sampling program over prospective pegmatite outcrops identified. The remote sensing target generation images provided by Denchi will be utilised in the field mapping and sampling programmes.
As part of the project-wide mapping and sampling exercise, outcrop dimensions will be recorded and the mineralised outcrops will be ranked based on anomalism and dimensions. The criteria for “drill Ready” will also take into account the number of individual mineralised pegmatite dykes in any particular swarm.
