TG Metals has lodged a mining lease application for its Burmeister lithium deposit, targeting early-stage direct shipping ore development amid a buoyant lithium market.
- Mining lease application lodged for Burmeister lithium deposit
- Exploration Target of 15.6–20.1Mt at 0.97–1.19% Li2O
- Metallurgical testwork supports +1.5% Li2O direct shipping ore product
- Project benefits from proximity to Esperance Port infrastructure
- Additional drilling planned to refine early pit design and DSO opportunity
Mining Lease Application Marks Development Step
TG Metals Limited (ASX:TG6) has taken a significant step towards developing its Burmeister lithium deposit by lodging a mining lease application over the site. The Burmeister deposit, part of the company’s 100% owned Lake Johnston Lithium Project in Western Australia, hosts an Exploration Target ranging from 15.6 million to 20.1 million tonnes grading between 0.97% and 1.19% lithium oxide (Li2O). This move signals TG Metals’ intent to capitalise on the current strong demand for lithium direct shipping ore (DSO) products.
DSO Potential Backed by Metallurgical Testwork
Encouraging metallurgical testwork from 2024 demonstrates that Burmeister’s ore can be upgraded to a high-quality DSO product with grades exceeding 1.5% Li2O through simple crushing and ore sorting techniques. The test results consistently showed coarse fractions (+10mm) achieving an average grade of 1.5% Li2O, suitable for direct shipment. The shallow nature of the pegmatite deposit, with an oxidised cover approximately 5 metres deep, suggests minimal pre-strip requirements, potentially reducing upfront capital expenditure.
Strategic Location Near Infrastructure
Lake Johnston’s proximity to key infrastructure, including the Norseman–Esperance highway and the Port of Esperance, is a strategic advantage for TG Metals. This accessibility enhances the feasibility of a DSO operation, allowing the company to respond swiftly to buyer interest from Asia, where lithium prices for 1.2% Li2O products currently range between US$362 and US$430 per tonne CIF China. The project’s location near existing lithium processing plants and deposits further underscores its regional significance.
Drilling to Support Early Pit Design
To progress the DSO opportunity, TG Metals has planned a resource drilling program comprising 41 drillholes totalling 4,809 metres, combining reverse circulation and diamond core drilling. This program prioritises defining the shallowest 5 to 10 million tonnes of the Burmeister deposit, aiming to refine overburden thickness and support early-stage pit design. The upcoming drilling will also generate fresh core samples for further metallurgical testing, which will inform product specifications for potential customers.
Parallel Focus on Gold Development
While advancing lithium development, TG Metals continues to prioritise its Van Uden Gold Project, targeting first production from heap leach operations. CEO David Selfe emphasised that Burmeister’s development will proceed alongside Van Uden, reflecting the company’s dual-asset strategy in Western Australia’s stable mining jurisdiction.
Bottom Line?
TG Metals is positioning Burmeister for early-stage lithium production with a mining lease application and promising DSO testwork, but resource definition and market dynamics will be key to unlocking value.
Questions in the middle?
- Will the mining lease approval process proceed smoothly given the project’s location and regulatory environment?
- How will ongoing drilling results affect the confidence in defining a Mineral Resource at Burmeister?
- Can TG Metals secure offtake agreements that reflect the current strong DSO lithium pricing environment?