Charger Metals NL and Partner Rio Tinto Prepare to Drill Lake Johnston Lithium Project

Charger Metals NL (ASX: CHR) now has approvals in place for a reverse circulation drilling program at the Lake Johnston Lithium Project.

The work is being funded by Rio Tinto Exploration Pty Limited (RTX) through a farm-in agreement.

RTX is a wholly-owned subsidiary of Rio Tinto Ltd (ASX: RIO), and is currently conducting a $3 million exploration program throughout 2024.

Previous highlights include:

  • 6.50 metres at 2.22% lithium;
  • 9.70 metres at 1.80% lithium; and
  • 8.20 metres at 1.04% lithium.

Mineralisation remains open at depth and along strike.

Lake Johnston is located 450 kilometres east of Perth in Western Australia, in the central part of Yilgarn Lithium Province.

The region hosts the majority of Australia’s lithium mineral resources.

Drilling plan

The program is expected to begin this month, June 2024, and will cover 5,000 metres.

This will test the strike extensions of the known high-grade spodumene mineralisation at the Medcalf Prospect.

Along with the large surface lithium anomalies at the Mt Gordon Prospect.

Valuation proposition

The farm-in allows Charger to advance exploration at a vastly reduced cost, while still having upside to exploration success.

The company held $2.6 million in cash at the end of March 2024, and currently capped at $6.7 million, for an enterprise value around $4 million.

 

 

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