Chariot Corporation is pummelling its near-surface lithium spodumene targets with drilling at its flagship Black Mountain project in Wyoming, USA. Armed with a cutting-edge Boart Longyear reverse circulation drill rig, the company is targeting high-grade spodumene resources to fast-track its small-scale lithium mining strategy to service the US electric vehicle market.
Following weeks of preparation, the company says the rigs are spinning at its spodumene-bearing lithium zones, with up to 18 drill holes planned for some 1,000m in the program at two designated mountainous locations.
The move comes as Chariot seeks to define a lithium resource capable of supporting a pilot mining operation to supply the burgeoning US domestic demand —critical for the nation's growing electric vehicle (EV) sector and the wave of new lithium refineries sprouting across the southwest.
Samples will be sent to the American Assay Labs in Reno, Nevada, for analysis, with results anticipated to flow in over the coming months.
Chariot says it has crafted a nimble and adaptable drilling schedule in the face of Wyoming’s bitter winter conditions. Operations will continue until Christmas, before a planned shutdown and resumption in January next year.
The company says the second wave of drilling at the promising project is not only about defining resources for immediate production but also about establishing a framework for long-term scalability should a predicted 3rd wave of lithium demand and high prices come to hand.
Chariot’s recent decision to switch from a large-scale exploration plan to move on a swift and low capex production route was made to capitalise on immediate local demand that will appear from refineries currently under construction in the south-western US.
Management believes that by delivering concentrate that is produced just three hours away, rather than from overseas, end users are likely to make substantial cost savings on transport.
The smaller mining path is also attractive for the company because Black Mountain’s home State, Wyoming, has extremely attractive permit regulations for small mining operations when compared to other jurisdictions.
As with most States, Wyoming enforces a 10-acre maximum on surface disturbance for small mining operations. However, unlike other States that impose a limit on the volume of material that can be extracted – often capped at 35,000 cubic yards – Wyoming has no such rules.
Black Mountain’s high-grade lithium is near-surface and expected to be predominantly near-surface, which lends itself to open-pit mining, thereby reducing mining costs without having to worry about any volume restrictions.
Plans have also already been drawn up to pepper Black Mountain with further 3300m of RC drilling following phase 2. Chariot says a mixture of infill and extensional drilling should allow it to build up a complete 3D model of the deposit to execute its new strategy.
At some stage, lithium prices have been widely forecast to bounce back, Chariot has caught the eye of the market with its low-risk and low-cost production strategy to potentially access early free cash flows.
Following the announcement of strategy change in early October, Chariot’s share price impressively doubled in an otherwise lacklustre lithium market. The company are now cashed up and setting off to execute on its plans that could see them well positioned to service a growing US market.
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By Andrew Todd
