Astute Metals reports breakthrough lithium mineralisation at its Red Mountain Project in Nevada, with new high-grade zones and exceptional metallurgical leachability results paving the way for a maiden resource in 2025.
- New diamond drilling at Red Mountain yields highest lithium grades to date
- Initial metallurgical testwork shows lithium leachability up to 98%
- Georgina Basin drilling confirms prospective IOCG-style alteration with further work planned
- Acquisition of 2% royalty on Georgina Basin simplifies ownership structure
- Sale of diamond assets aligns focus on core lithium and mineral sands projects
Red Mountain Lithium Discovery Accelerates
Astute Metals NL (ASX: ASE) has delivered a compelling update on its Red Mountain lithium project in Nevada, reporting new diamond drill intersections that include the highest lithium grades recorded at the site to date. The standout drill hole RMDD001 intersected 25.9 metres at 1,530 ppm lithium, including a high-grade zone of 13.1 metres at 1,820 ppm lithium from 76.2 metres depth. These results surpass previous drilling and underscore the project's significant untapped exploration potential.
The Red Mountain Project, staked in August 2023, lies within a region hosting some of North America's largest lithium claystone deposits. Astute's maiden diamond drilling campaign aimed to extend mineralisation northwards and test new horizons, successfully confirming multiple lithium-bearing zones. The presence of high-grade lithium mineralisation in soft, recessive claystone host rocks, combined with excellent proximity to infrastructure such as Route 6, enhances the project's strategic appeal.
Promising Metallurgical Testwork Supports Resource Development
Complementing the drilling success, initial metallurgical testwork conducted on six reverse circulation drill samples has demonstrated exceptional lithium leachability. Lithium extraction rates reached up to 98% under sulphuric acid leaching conditions, with favourable kinetics observed at elevated temperatures (60°C) and within short leach times (4 to 24 hours). These results indicate that lithium can be efficiently liberated from the Red Mountain claystones, a critical factor for downstream processing and economic viability.
The testwork also revealed a positive correlation between lithium grades and clay content, suggesting that targeting areas with higher clay proportions could yield richer mineralisation. Future metallurgical programs will focus on optimizing leach parameters and exploring beneficiation techniques to reduce acid consumption and improve lithium concentrate quality.
Georgina Basin Drilling Advances IOCG Exploration
In the Northern Territory, Astute completed a second deep diamond drill hole at the Leichhardt East prospect within the Georgina Basin IOCG project. The 500-metre hole intersected basement rocks consistent with the Warramunga Formation, including breccias, siltstones, and ironstones with hematite alteration and trace chalcopyrite mineralisation. Although the dense source of the modelled gravity anomaly was not intersected, structural complexity and faulting suggest further drilling is warranted to locate the prospective IOCG mineralisation.
Astute’s acquisition of a 2% net smelter return royalty on the Georgina Basin project from Greenvale Energy Limited, completed via a share issue, simplifies the project's ownership and aligns with the company’s strategic focus on advancing its core assets.
Corporate Moves Sharpen Focus on Core Projects
During the quarter, Astute divested its Western Australian diamond assets, including the East Kimberley diamond tenement and heavy mineral separation plant, for $125,000. This sale supports the company’s strategy to concentrate resources on its lithium and mineral sands projects. Additionally, Astute launched an Investor Hub platform to enhance shareholder engagement and transparency, providing a centralized portal for company updates, reports, and interactive communication with management.
Financially, the company reported exploration expenditure of $770,535 for the quarter, with cash reserves standing at $558,000 at period end. Astute has taken steps to manage cash flow, including asset sales and a planned capital raising, positioning it to sustain its exploration momentum into 2025.
Looking Ahead
Astute Metals is awaiting assay results from the second diamond drill hole at Red Mountain, expected in the first quarter of 2025, which will further inform resource estimation efforts. The company plans to integrate geological mapping and surface sampling data to refine drilling targets and advance permitting for subsequent drilling campaigns. Meanwhile, ongoing geological logging, sampling, and geophysical modelling at the Georgina Basin will guide future exploration phases targeting IOCG mineralisation.
With high-grade lithium intersections and metallurgical results that compare favourably to peer projects, Astute Metals is well positioned to define a maiden lithium resource at Red Mountain in 2025, potentially unlocking significant value in a critical battery metals jurisdiction.
Bottom Line?
Astute Metals’ latest drilling and metallurgical successes at Red Mountain set the stage for a pivotal resource milestone in 2025, with further assay results and exploration updates poised to shape its lithium growth trajectory.
Questions in the middle?
- Will upcoming assay results from RMDD002 confirm further high-grade lithium zones at Red Mountain?
- How will metallurgical optimisation and beneficiation impact the economics of lithium extraction at Red Mountain?
- What are the next steps and timelines for advancing IOCG exploration at the Georgina Basin following recent drilling?