Birimian Limited (ASX:BGS) A$0.37/s, mkt cap A$72m – Exploration at Goulamina lithium project shows three new pegmatite zones
Birimian Limited which have sparked a small rush of exploration for lithium in pegmatite veins in Mali reports the discovery of three new pegmatite zones close to the current lithium resource at Goulamina.
The Birimian team have conducted two auger drill programs to locate the new pegmatite zones. 562 holes averaging 8m deep show the three pegmatite zones along with some other anomalies in the area.
The company also report lithium grades in outcropping pegmatites from rock chip samples. We are wary of rock chip grades due to their selectivity and the propensity for geologists to chip off the best bits, though it’s still a useful tool and a good starting point from an exploration perspective.
The current resource at Goulamina is for 32.9mt grading 1.37% Li2O for 451,000t of contained lithium oxide.
Conclusion: It is reasonable to expect the Goulamina project resource to continue to expand and for the economic potential of the project feasibility study to meaningfully increase. The Goulamina scoping study currently envisages the processing of 1mtpa of ore for 190,000t of spodumene concentrate with a capex of US$42.7m in phase 1 plus US$40.7m in phase 2. The study works on a concentrate sales price of US$537/t and an operating cash cost of US$326/t. Results from the ongoing Pre-Feasibility Study are expected this month.
BGS Price at posting:
36.0¢ Sentiment: Buy Disclosure: Held
