Charger Metals advances Medcalf toward a lithium development decision

Medcalf drilling reaches 4,390 metres

Charger Metals NL (ASX:CHR) has turned the proceeds from its Bynoe disposal into an active test of its Lake Johnston lithium strategy, completing 4,390 metres of a planned 10,000 metre campaign during the September quarter. One reverse-circulation rig and one diamond rig are targeting extensions and infill at the 10.6 million tonne Medcalf deposit, as well as the conceptual Medcalf West Exploration Target.

The programme is designed to test whether mineralisation that remains open along strike and down dip can support resource growth. Charger said first assays are expected shortly. The campaign follows the company's two-rig Medcalf drilling campaign, which targeted both greater geological confidence at Medcalf and the possibility of converting Medcalf West into a Mineral Resource.

Ore-sorting produces a higher-grade composite

The more immediate technical result came from metallurgical testing. When the coarse ore-sorted concentrate was combined with the unsorted fine fraction, the Master Composite produced 1.32% Li2O at 94.9% lithium recovery, alongside 147 parts per million tantalum pentoxide at 97.2% recovery.

The coarse concentrate alone reached 1.37% Li2O and 159ppm Ta2O5, while rejecting 78.3% of the iron in the feed. The combined product represented 72.5% of the sample mass. These are laboratory test results rather than commercial operating outcomes, and further heavy liquid separation and dense media separation work remains underway.

Shallow resource supports ongoing mine studies

Medcalf's current Inferred Mineral Resource remains 10.6Mt at 1.0% Li2O, containing about 106 kilotonnes of lithium oxide, with a separate 2.2Mt tantalum resource. Charger says 81% of the lithium resource sits within 300 metres of surface, a feature it is using in preliminary open-pit optimisation and mining studies.

The company is advancing a scoping study and permitting work, with mining concepts expected to combine open-pit extraction with underground methods for larger lodes. The potential 3Mt to 5Mt Medcalf West target, graded at a conceptual 1.0% to 1.4% Li2O, should not be treated as a resource: Charger explicitly states that more exploration is required and that conversion is uncertain.

Bynoe sale funds the next phase

Charger received $3.752 million in cash on 17 July from selling 100% of the Bynoe Lithium Project to Core Lithium's subsidiary. The transaction also preserves exposure to a further $1 million payment if an 8Mt resource grading at least 1.0% Li2O is delineated on the tenement, plus a 1% gross revenue royalty capped at $10 million.

That cash injection lifted the balance from $1.341 million at the end of June to $4.229 million at 30 September. Quarterly exploration and evaluation expenditure totalled $581,158, while the Appendix 5B reported total relevant outgoings of $813,000 and estimated funding of 5.2 quarters. No production or development activity was reported.

Assays and study results become the next test

Charger now has a funded work programme, but the value of the story depends on what the drilling and studies establish rather than on the headline resource alone. Pending assays could affect the size and confidence of Medcalf, while the outstanding DMS work and scoping study must determine whether the encouraging sorting results can translate into a credible processing and mining pathway.