Commodities, Exploration/Development, Lithium, News

Larvotto targets fancied lithium prospect at Eyre

Larvotto lithium

Larvotto Resources is set to commence aircore drilling at its Eyre project in Western Australia as the company zeros in on a lithium geochemical anomaly at the Merivale prospect.

The Merivale anomaly was generated from a geochemical soil program earlier this year that was designed to test the prospective rock units that extend south from Liontown Resources’ Buldania project.

The anomaly is currently defined over an area of 4km long and 1m wide, with a maximum lithium value of 126 parts per million (ppm) lithium oxide.

Geological mapping undertaken during Larvotto’s surveying highlighted the presence of small pegmatite outcrops and broader areas of pegmatite float within the surface soil horizon.

With the aircore drill program, the company will be aiming to refine the broad geochemical anomaly to pinpoint discrete targets for follow-up reverse circulation (RC) drilling.

“As most of the area is covered by transported soils with only small outcrops of pegmatites visible, lines of aircore drilling across the trends of the highest geochemical anomalies will assist with identifying the exact location of pegmatite units for more detailed follow-up,” Larvotto said in a statement.

“The pegmatites at Merivale are also associated the ultramafic rock units that have anomalous nickel geochemistry and may be prospective for base metals and PGE (platinum group element) minerals, as have been identified in adjacent projects.”

Larvotto will be testing all rock units as part of the drill program.

“Since identifying the Merivale lithium geochemical anomaly directly south of Liontown’s Buldania lithium deposit, the company has been progressing the required approvals to commence the initial phase of aircore drilling,” Larvotto managing director Ron Heeks said.

“Encouragingly, the required program of work has been approved and an aircore drill rig has been sourced to undertake the drill program. Some 4000m of drilling is planned upon completion of heritage surveys that commenced this week.”

It comes after Larvotto received a cornerstone investment for its lithium strategy at the Merivale prospect in October.

The company will receive $3.4 million in investments from Canadian institutional fund Lithium Royalty Corp. (LRC) and Waratah Capital through its Electrification and Decarbonisation Fund (E&D Fund).

The three-tiered royalty, equity and offtake (REO) agreement comprises a $700,000 cash payment to be made by LRC for a 1 per cent gross revenue royalty over lithium and all other pegmatite materials from the Eyre project.

LRC will also make a $700,000 cash payment for 20 per cent of Eyre’s life-of-mine offtake for any lithium materials (including lithium ore, concentrates, sulphates and chemicals).

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