Australian-based mineral explorer and developer Global Geoscience (ASX:GSC) has announced the final assay results from a recent drilling program, further confirming high-grade mineralisation in its Lithium-Boron Project.
The drilling program aimed to increase the estimated Mineral Resource located within Global Geoscience’s 100%-owned Rhyolite Ridge Lithium-Boron Project in Nevada, U.S.A.
Preliminary results are promising, with the latest intersections likely to increase the high-grade component, currently roughly 65 million tonnes at 1910ppm Lithium and 1.59% Boron.
Global Geoscience is currently working on an updated Mineral Resource estimate, which it expects to complete later this month. The estimate will form an integral part of the Rhyolite Ridge Pre-Feasibility Study.
Global Geoscience is very encouraged by the latest results showing Rhyolite Ridge’s lithium-boron mineralisation has again been demonstrated to be thick, consistent and flat-lying, said Global Geoscience Managing Director Bernard Rowe.
“The latest strong drilling results are likely to increase the high-grade component of the soon to be updated Mineral Resource and come just one week after the Company raised $30 million through an institutional placement.”
The Citigroup managed placement was heavily oversubscribed, with a total of 150 million shares offered at a price of $0.20 per share. Global Geoscience plans to spend the $30 million over a two-year period, investing in the Pre-Feasibility Study, a pilot plant program and a Definitive Feasibility Study.
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Global Geoscience is looking to capitalise on the worldwide demand for lithium, particularly in the resource’s main growth market, batteries.
Although lithium batteries are used in devices such as smartphones, tablets and laptops, it is expected that the rise of electric vehicles (EV) will lead to an explosion in lithium demand. The governments of major auto markets such as China, India, France and the UK have all announced targets for phasing out internal combustion engine (ICE) vehicles and many other governments and auto-makers are planning to follow suit.
In a recent interview, Chairman of Global Geoscience James Calaway said he got involved with lithium through his interest in electric propulsion. After spending over eight years at Orocobre, Calaway learned about Global Geoscience while looking for another company presenting a real opportunity in the lithium space.
Calaway added that although the Rhyolite Ridge project was first characterized as a sedimentary clay project, it was later discovered to contain minerals that could be easily and economically processed into lithium and boron. “I think Global Geoscience’s racehorse has a really legitimate shot to be a major new producer,” he added.
Earlier this month, Global Geoscience announced that it had secured a 20-year lease granting long-term water rights and access to 1.2 giga litres of water per annum. Calaway said that the securing of water, which is critical to the development of any mine, significantly “de-risks” the company’s Rhyolite Ridge Lithium-Boron Project. In the next few years, the company hopes to develop the Project into a long-life and low-cost supplier of lithium and boron.