Astute Metals’ Red Mountain Expansion Raises Stakes Ahead of Maiden Resource Estimate

Record Lithium Intercept at Red Mountain

Astute Metals NL has delivered its most significant lithium assay results to date from the Red Mountain Lithium Project in Nevada, USA. Drill-hole RMDD002 intersected an impressive 86.9 metres grading 1,470 parts per million (ppm) lithium from just 18.3 metres downhole, including a high-grade internal zone of 32.1 metres at 2,050ppm lithium. This intercept not only marks the thickest lithium-bearing interval recorded at the project but also extends mineralisation 375 metres north of previous drill holes RMRC002 and RMRC003.

The high-grade zone within RMDD002 featured a peak sample grading 3,850ppm lithium, underscoring the potential for further discovery of premium lithium mineralisation at Red Mountain. The mineralised interval comprises clay-bearing mudstone, sandstone, tuff, and limestone, with the richest grades associated with clay-rich zones exhibiting characteristic desiccation features.

Geological Mapping and Exploration Targets

Complementing the drilling success, detailed geological mapping led by Professor Phillip Gans from the University of California Santa Barbara identified two priority lithium-hosting rock units within the Horse Camp Formation: Unit O and Unit J. Unit O, a siltstone and sandstone dominated unit with clay-rich horizons, extends continuously over 7.8 kilometres and has been the focus of most drilling to date. Unit J, a newly identified claystone and siltstone unit in the western project area, returned rock-chip samples grading up to 2,100ppm lithium, despite being tested by only one drill hole so far.

Based on these data, Astute Metals has established a JORC-compliant Exploration Target for Red Mountain ranging from 1,136 to 1,515 million tonnes at an average grade between 785 and 1,328ppm lithium (0.42% to 0.71% Lithium Carbonate Equivalent). The target is subdivided into Target Area A, which will be the focus of upcoming drilling, and Target Area B, which remains at an earlier exploration stage.

Upcoming Drilling and Capital Raising

Astute Metals has completed permitting and bonding for a six-hole diamond drilling campaign totaling approximately 1,370 metres, scheduled to commence in April 2025. The campaign aims to test extensions of lithium mineralisation along strike, at depth, and beneath thin alluvial cover within Target Area A. Assay results from this program are expected by late May and will inform a final drilling campaign planned for the second half of 2025, which is anticipated to underpin a maiden Mineral Resource Estimate by year-end.

To fund this drilling, the company successfully raised $1.8 million through a placement primarily to high-net-worth and institutional investors. Concurrently, Astute launched a 1-for-2 Loyalty Option program for existing shareholders, exercisable at 5 cents per option over 18 months, designed to reward loyal investors and provide additional capital flexibility.

Broader Project Portfolio and Corporate Developments

Beyond Red Mountain, Astute Metals continues to advance its Georgina Basin IOCG Project in the Northern Territory and the Governor Broome Mineral Sands Project in Western Australia. While no new work was reported this quarter on these projects, the company is actively exploring options to realise value from Governor Broome, including potential joint ventures or sale discussions.

Corporate governance remains robust, with recent general meeting approvals for share issuances and performance rights to key executives and directors, reflecting confidence in the company’s strategic direction. The quarterly cash flow report shows a net cash decrease driven by exploration expenditure, with $1.68 million cash on hand at quarter-end, supporting ongoing activities.