Ann: Drilling starts at the high-grade Earl Grey lithium project-KDR.AX, page-2

August 10, 2016.  ASX Release

Drilling starts at the high-grade Earl Grey lithium project in WA RC and diamond drilling program at this extensive pegmatite is aimed at extending the known lithium mineralisation  

Kidman Resources Limited (ASX: KDR) is pleased to advise that a major drilling program is underway at the high-grade Earl Grey lithium project that sits on a granted mining lease within its Mt Holland project in WA.  
Kidman announced last month (see ASX release dated July 15, 2016) that five holes drilled into Earl Grey had returned outstanding results with high grades of up to 2.5 per cent Li2O over wide intervals.  

Significantly, all these drill holes were terminated in lithium mineralisation because they were targeting gold. As a result, the actual thickness of the Earl Grey pegmatite is still unknown, although the existing drill holes confirm a minimum true width of approximately 50m.
Kidman will now utilise a multi-purpose RC/Diamond drill rig to drill several RC pre collars followed by diamond tails to test the actual thickness of the mineralised pegmatite. The program will then step to the south targeting the pegmatite up dip near surface and laterally along strike.  
The diamond core will be used in metallurgical testwork with the initial view of producing a saleable coarse spodumene concentrate and providing an opportunity to understand the mineralogy and grain size of the spodumene.  Additional testwork will then assess recovery from the fines and gather information needed for process plant design.

Earl Grey is one of several major lithium-bearing pegmatites at Mt Holland, all of which are on granted Mining Leases.  
Kidman announced last month (see ASX release dated July 27, 2016) that it had signed a Memorandum of Understanding with Poseidon Nickel (ASX: POS) aimed at enabling Kidman to use Poseidon’s 1.5 Mtpa Lake Johnston concentrator to fast track initial processing of lithium ore from Mt Holland.  
Lake Johnson, which is located approximately 110km by road from Earl Grey, is on care and maintenance. The two companies have agreed to work together to explore the opportunity to initially toll treat or agree to an off take for lithium   concentrate by utilising this asset. Poseidon has undertaken preliminary test work which supports Lake Johnston can produce a marketable lithium concentrate.