Eastern Resources Limited reports solid progress in its lithium and iron projects during the December 2024 quarter, highlighted by promising metallurgical test results from Lepidolite Hill.
- Promising lithium recoveries of 80-82% from Lepidolite Hill metallurgical testwork
- Ongoing Environmental Effects Assessment for Nowa Nowa Iron Project
- No exploration activities at some lithium projects during the quarter
- Company holds approximately $3.77 million in cash at quarter-end
- Capital structure optimised via 1:10 share consolidation and rights restructuring
Quarterly Overview and Project Focus
Eastern Resources Limited (ASX: EFE) has released its quarterly report for the period ending 31 December 2024, outlining steady progress across its lithium and iron assets. The company’s primary focus during the quarter was advancing metallurgical testwork at the Lepidolite Hill Lithium Project and continuing environmental permitting efforts for the Nowa Nowa Iron Project in Victoria.
While exploration activity was paused at several other lithium projects including Trigg Hill, Yalgoo West, and Lake Johnston, Eastern Resources remains actively evaluating new project opportunities and is engaged in commercial discussions with multiple parties, signaling a strategic intent to expand its portfolio.
Lepidolite Hill Metallurgical Breakthrough
One of the quarter’s highlights was the collaboration with Nagrom, a specialist lithium consultancy, to conduct metallurgical testwork on samples from Lepidolite Hill. Preliminary results received in January 2025 demonstrated lithium recoveries between 80% and 82%, producing a lepidolite concentrate grading 3.7% Lithia (Li2O) through a combination of magnetic separation and conventional flotation techniques.
This outcome is significant as it validates the potential for commercial lithium concentrate production using established beneficiation methods. The testwork involved multi-stage flotation and magnetic separation, with detailed analysis confirming the concentrate’s quality and recovery efficiency. Such promising metallurgical performance enhances the project’s attractiveness and could underpin future development decisions.
Nowa Nowa Iron Project Progress
On the iron front, Eastern Resources continued advancing the Environmental Effects Assessment (EES) approval process for the Nowa Nowa Iron Project. This comprehensive permitting approach integrates all planning and operating licence requirements, a critical step toward eventual project development and operation. The company’s focus on securing these approvals reflects its commitment to responsibly advancing one of Australia’s highest-grade magnetite projects.
Financial and Corporate Developments
Financially, Eastern Resources ended the quarter with approximately $3.77 million in cash and cash equivalents, providing a solid foundation for ongoing exploration and development activities. The company also implemented a 1:10 share consolidation following shareholder approval at the 2024 AGM, alongside restructuring director and executive performance rights and options to align with the new capital structure.
Related party payments during the quarter amounted to $98,000 (excluding GST), covering directors’ fees and consulting services at normal commercial rates. These corporate actions aim to optimise capital efficiency and align incentives as Eastern Resources advances its strategic objectives.
Looking Ahead
With metallurgical results confirming the viability of Lepidolite Hill’s lithium concentrate and the Nowa Nowa iron project progressing through critical environmental approvals, Eastern Resources is positioning itself for potential growth. The company’s ongoing project evaluations and commercial discussions suggest a proactive approach to expanding its asset base, though the lack of exploration activity on some lithium projects may warrant close monitoring.
Bottom Line?
Eastern Resources’ strong metallurgical results and permitting progress set the stage for potential project advancement and portfolio growth in 2025.
Questions in the middle?
- What are the timelines and expected milestones for the Nowa Nowa Environmental Effects Assessment approvals?
- How will Eastern Resources prioritise its lithium projects given the current pause in exploration at several sites?
- What new projects are under consideration, and how might acquisitions reshape the company’s strategic focus?