A joint venture lithium project in the goldfields region of Western Australia at Mount Marion with Reed Resources Ltd (ASX:RDR) and Mineral Resources Limited (ASX:MIN) has continued to show positive advancements. The Mount Marion Project is on schedule for commissioning in the December quarter 2011 with initial capacity of 200,000 tonnes per year of 6 percent lithium chemical grade spodumene concentrate, 60,000 tonnes per year of mica and 30 tonnes per year of tantalite concentrate. The total reported lithium oxide resources contained at present are 146,000 tonnes.
Reed has three main assets which vary considerably in terms of commodity rationale, capital demands, and management input; Meekatharra gold, Mount Marion lithium and Barrambie vanadium. This diversified commodity mix in Reed?s portfolio provide investors with an interesting net effect for market exposure. Although the share price currently trades in the 55 cent range, a recent bullish report compiled by Green Leader Equity Research provides a share price target of $1.11.
Mineral Resources Limited is an Australian-based integrated supplier of goods and services engaged in processing and mining services with operations in contract crushing, general mine services infrastructure provision and recovery of base metal concentrate for export sales.
A third phase strategic resource expansion program was completed at Mount Marion during March and April with a view to extending the open pit mine life through depth and strike extensions of existing deposits. The results of some remaining holes are expected to be received by the end of May when drill results will be compiled and validated for inclusion in a database from which an updated geological model of the Mount Marion deposits will be constructed in preparation for resource estimation by the end of September.
