Venus Metals Corporation says it has identified a strong lithium anomaly at its Youanmi lithium project in Western Australia’s Murchison region that may indicate pegmatite-hosted lithium-caesium-tantalum (LCT) mineralisation.
The discovery was made from a reconnaissance soil sampling program in an area not previously explored for LCT style mineralisation where several pegmatite outcrops are located.
Venus says the anomaly measures about 1.4km by 0.4km with a maximum lithium concentration using ultrafine soil fractions of up to 305 parts per million (ppm).
The latest discovery sits around 35km south of known lithium mineralisation at the operation’s Manindi target where first-pass shallow reverse-circulation drilling encountered pegmatite hosted LCT mineralisation in April.
Manindi sits in the Youanmi greenstone belt within the granite–greenstone contact zone that is considered prospective for typical lithium bearing mineralogy. Positive rock chip samples and promising assay results from 158 soil samples collected as part of a regional geochemical program, encouraged the company to launch its previous drill program.
Management believes the latest lithium discovery shows the potential for the largely under-explored pegmatite zone to host further LCT mineralisation along the granite-greenstone contact. The company is already planning follow-up fieldwork at the anomaly including mapping and rock chip sampling of the pegmatite outcrop in addition to further soil sampling. Geochemical surveys along the granite-greenstone contact are also in the works.
Venus is also set to formalise its deal to become a major shareholder in joint venture (JV) partner Rox Resources after the companies agreed to consolidate their ownership interests in the greater Youanmi gold project in Western Australia.
The terms of the deal will see Rox issue 110 million shares at an issue price of 25 cents each to Venus, representing a total of $27.5 million in value with the transaction expected to be completed on Friday.
Venus will then relinquish its gold rights at Youanmi to Rox, in addition to all of its gold interests in its other JVs with Rox. However, Venus will retain its current net smelter royalty of 0.7 per cent at the greater Youanmi gold project in addition to becoming a major shareholder in Rox.
Youanmi’s total resource currently stands a shade under 30 million tonnes, going a solid 3.57g/t for 3.2 million ounces of gold – a big 93 per cent rise on its June 2021 figure. The project is regarded as having significant upside potential, not least because its scoping study’s production target includes only 20 per cent of the project’s total mineral resource.
A pre-feasibility study is targeted for this year and a definitive feasibility study is slated for 2024 before a final investment decision in 2025.
Rox has taken over the exploration at the site with recent results from resource drilling showing positive assays. Numbers include 5.12m at 4.46g/t gold from 479.3m including a 2.72m hit grading 6.81g/t gold from 480.1m.
While Venus no longer has any gold rights to the Youanmi project, the company retains a vested interest in the operation as a major Rox shareholder in addition to its net smelter royalty claim.
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