General Mining Corporation is drilling ahead at Mt Cattlin lithium project

Thursday, February 25, 2016 by Proactive Investors

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General Mining Corporation has begun drilling at Mt Cattlin lithium-tantalum deposit near Ravensthorpe

Cashed up General Mining Corporation (ASX:GMM) is drilling ahead at the Mt Cattlin lithium-tantalum deposit near Ravensthorpe that could expand the resource size of the project.

Drilling will follow up spodumene-bearing pegmatite found in limited drilling by Galaxy Resources(ASX:GXY).

The Mt Cattlin mine is located about 2 kilometres north of the town of Ravensthorpe and was operated by Galaxy Resources between 2009 and 2012.

However, with spodumene supply into China continuing to tighten and with prices increasing, a restart of operations at Mt Cattlin producing lithium bearing spodumene concentrate, could be as early as 2017.

A recent review by Entech Consultants concluded that the project would produce robust positive cashflows.

Significantly, GMM signed Mitsubishi Corporation to an exclusive sales and distribution agreement to sell future Mt Cattlin spodumene concentrate into China, Taiwan, Vietnam and South Korea.

Early drill core logging confirmed that there are spodumene-bearing pegmatite units immediately below the current resource so the upside case looks strong.

The program is also testing for potential gold and gold-copper mineralisation as previous drilling did not analyse for gold or copper.

Michael Fotios is now in the executive chairman chair after strongly supported capital raisings in 2015 at $0.05 and later at $0.18 each, capturing the investor interest in lithium stocks.

GMM held $10 million in cash reserves in December 2015.