Core Lithium seems set to drill for lithium next to Kingsland Minerals Shoobridge Pegmatite Project.
The Project is on land some 80km south of Core Lithium’s Finnis lithium/spodumene operation near Darwin.
CXO/Core Lithium has an offtake deal with Tesla which is planning to build a big battery manufacturing facility in nearby Indonesia.
Core has a market cap of $2.8b. Kingsland has a market cap of $7.5m.
Core underlined Kingsland’s potential as a leveraged lithium play in April this year when it revealed the purchase of Shoobridge tenement EL31407 from gold producer Newmont Corporation.
The tenement is located in the Pine Creek Orogen and the Tipperary pegmatite district and includes the Shoobridge pegmatite field and the Plateau Point pegmatite field.
The Shoobridge deal didn’t have a material impact on the Core Lithium share price. And it didn’t impact Kingsgate because the group didn’t have any shares listed. It was in pre-float mode.
In the past, Shoobridge pegmatites just 2km from Kingsland’s tenement EL31409 have been mined for tin and tantalum. They have not been exploited for lithium.
But Core Lithium is now saying the pegmatites are “analogous to those in the Bynoe pegmatite district and are therefore complementary to the Company's lithium portfolio in the Northern Territory.”
The Bynoe district encompasses Finnis.
“Core will be the first company to explore and drill these prospective, potentially lithium-rich pegmatite systems for economic spodumene lithium mineralisation.”
Core Managing Director Stephen Biggins:
“We…are excited by projects such as Shoobridge that provide synergies and complementary lithium growth opportunities.
“The expected increases in resources…should provide a strong platform for extending and expanding lithium production from the project as lithium prices continue to rise.”
Questions: When Core Lithium starts drilling next to KNG’s Shoobridge Project will KNG’s share price rise? By how much?
KNG Price at posting:
20.0¢ Sentiment: Hold Disclosure: Held
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