Commodities, Exploration/Development, Lithium, News

Is this Australia’s most promising lithium project?

Andover lithium

It’s the lithium asset that’s captured the world’s attention in recent years, and the Andover project continues to go from strength to strength.

Azure Minerals has announced another string of high-grade lithium assays from recent drilling at Target Area 1 within Andover, with consistent returns of above one per cent lithium oxide (Li2O) across at least 100m. Drilling has targeted the AP0011 pegmatite.

The most significant results include:

  • 112.9m at 1.63 per cent Li2O from 408.5m (107m true width), including 24.6m at 2.17 per cent Li2O from 424.7m
  • 152.3m at 1.15 per cent Li2O from 330.7m (137.1m true width), including 34.7m at 1.73 per cent Li2O from 331.6m
  • 112m at 1.24 per cent Li2O from 299.1m (73.5m true width), including 40.6m at 1.55 per cent Li2O from 360.1m

To date, Azure has completed 217 diamond core holes for almost 70,000m, 94 reverse circulation (RC) holes for 18,775m, and 28 holes comprising RC pre-collar and diamond tails.

The company believes the most recent drill results could be the best so far.

“The latest assay results from diamond drilling of the AP0011 pegmatite have returned some of the thickest and highest-grade mineralised intersections received to date,” Azure said.

“Importantly, these assayed intervals correlate very strongly with previously reported visual spodumene observations.”

Nine diamond drill rigs continue to operate at Andover, with eight of these focused on resource definition at Target Area 3. Azure is looking to define the extents of mineralised pegmatites across the Andover tenement to support a maiden mineral resource estimate.

After Chilean lithium giant SQM announced an initial takeover bid for Azure in late October, Gina Rinehart’s Hancock Prospecting entered the fray, rapidly buying up Azure shares and joining forces with SQM on a new deal.

Announced in December, SQM and Hancock are set to buy Azure for $3.70 per share via a scheme of arrangement. Azure was trading at $3.63 per share at close on Friday.

Following an Azure shareholder meeting to approve the transaction in mid-March, the parties hope to close the deal shortly thereafter.

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