High-Grade Rock Chip Assays at Red Mountain Project
Released
Released
Announcement PDF
8 July 2024
HIGH-GRADE ROCK CHIP ASSAYS EXTEND PROSPECTIVE
LITHIUM HORIZON AT RED MOUNTAIN PROJECT, USA
Grades up to 4,150ppm Li identified along 1.4km trend north of recent discovery
Key Highlights
•
81 rock-chip samples reveal the presence of highgrade lithium claystone mineralisation in outcropping
and sub-cropping claystones at Red Mountain.
•
North-south trend of high-grade samples extends the
claystone mineralisation 1.4km north of hole RMRC002,
expanding the prospective horizon at Red Mountain
•
Exceptional grades of up to 4,150ppm lithium reported.
•
20 samples return grades over 1,000ppm lithium
indicating high-grade clays across the Project.
•
Assay results for the remaining eight drill holes expected in
two batches by the end of July.
Astute Metals NL (ASX: ASE) (“ASE”, “Astute” or “the Company”) is pleased to advise that rock chip assay
results from its 100%-owned Red Mountain Lithium Project in Nevada, USA have returned high-grade
mineralisation of up to 4,150ppm Lithium, further enhancing the project’s exploration and discovery
potential. Notable results returned up to 1.4km north of the recently reported discovery include:
•
4,150ppm Li, brown-green claystone sampled 490m north of RMRC002
•
2,900ppm Li, brown claystone sampled 990m north of RMRC002
•
2,550ppm Li, brown claystone sampled 1.40km north of RMRC002
A total of 81 samples were collected and assayed, adding to Astute’s understanding of the prospective
horizons at Red Mountain and complementing the initial drill results from its maiden drilling campaign,
for which assays for eight holes remain pending. The rock chip assays are shown, along with previous
results including the recently announced high-grade lithium discovery, in Figure 1.
These results suggest that the targeted high-grade lithium horizon persists further north than previously
interpreted, with a number of high-grade samples located along an approximate north-south trend
stretching 1.4km north of the northernmost drill hole, RMRC0021. The extended zone will be tested by future
drilling at the project.
Astute Chairman, Tony Leibowitz, said:
“Our exploration team continues to deliver exciting results, with these latest rock chip results
returning exceptional lithium grades and further expanding the potential scale of the Red Mountain
Project. The latest results come from an area up to 1.4km north of the discovery we announced
recently on 18 June and provide further evidence of the scale and potential of this project.
“We are eagerly awaiting the assays from eight drill holes along the initial 4.6km of strike tested by
our recent drilling, with these new rock chip results further extending the prospective horizon to over
6km – adding a significant new area for drill testing later this year.
“The latest results suggest that Red Mountain could be a very large and significant lithium discovery,
and we are looking forward to systematically unlocking its full potential.”
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Figure 1. Rock chip and Drill-hole locations, intersections, and gridded soil sample geochemistry over aerial image.
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Background
Located in central-eastern Nevada (Figure3), the Red Mountain Project was staked by Astute in August
2023.
The Project area has broad mapped tertiary lacustrine (lake) sedimentary rocks known locally as the
Horse Camp Formation2. Elsewhere in the state of Nevada, equivalent rocks host large lithium deposits
(see Figure 3) such as Lithium Americas’ (NYSE: LAC) 16.1Mt LCE Thacker Pass Project3, American Battery
Technology Corporation’s (OTCMKTS: ABML) 15.8Mt LCE Tonopah Flats deposit4 and American Lithium
(TSX.V: LI) 9.79Mt LCE TLC Lithium Project5.
After staking was completed, Astute completed an 819-point soil sampling campaign that revealed
strong lithium anomalism in soils, with grades of up to 1,110ppm lithium and a coherent 50ppm+ lithium
anomaly that extends over a strike length of 8km and is up to 2.8km wide2 (Figure 1).
After completing the soil sampling campaign, the Company embarked on a rock-chip campaign at Red
Mountain designed to test for lithium at strategic locations and across a range of outcropping and
shallowly sub-cropping rock types (see Figure 2).. The results of this initialrock chip sampling revealed
the presence of strongly mineralised claystone, with 10 claystones grading on average 1,102ppm lithium,
ranging from 132-2,190ppm lithium2
In May through June 2024 a maiden Reverse Circulation (RC) drilling campaign was completed at the
Project, with initial results indicating the potential discovery of a significant lithium deposit 1.
The assay results included the following high-grade drill intersections:
•
•
•
RMRC001:
RMRC002:
RMRC003:
59.4m @ 1,300ppm Li / 0.69% Lithium Carbonate Equivalent 6 (LCE) from 73.2m
15.2m @ 810ppm Li / 0.43% LCE from 15.2m
6.1m @ 1,050ppm Li / 0.56% LCE from surface, and
12.2m @ 1,060ppm Li / 0.56% LCE from 18.3m
Other attractive Project characteristics include outcropping claystone host-rocks and close proximity to
infrastructure, including the Project being immediately adjacent to the Grand Army of the Republic
Highway (Route 6), which links the regional cities of Ely with Tonopah.
Next Steps
The Company is awaiting outstanding assay results for the remaining eight drill holes completed as part
of the maiden drill campaign at Red Mountain, which are expected to be returned in two batches during
the month of July. Once received, a full interpretation of both drilling and surface sampling results will be
conducted ahead of establishing detailed future plans, including follow-up drilling, for the Project.
Figure 2. Sub-cropping mottled green/brown/white claystone – sample site 602232/2,940ppm Li.
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Figure 3. Location of Astute Lithium Projects, and Nevada lithium deposits.
1 ASX: ASE 18 June 2024 ‘Significant Lithium Discovery at Red Mountain Project’
2 ASX: ASE 27 November 2023 ‘Outstanding Rock-Chip Assays at Red Mountain Project’
3 NYSE: LAC 2 November 2022 Feasibility Study NI 43-101 Technical Report for the Thacker Pass Project
4 OTCMKTS: ABML 26 February 2023 ‘Technical Report Summary for The Tonopah Flats Lithium Project, Esmeralda.’
5 TSX.V: LI 17 March 2023 ‘Tonopah Lithium Claims project NI 43-101 technical report – Preliminary Economic Assessment’
6 Lithium Carbonate Equivalent wt%(LCE) has been calculated from Lithium parts-per-million (ppm) by the formula LCE = Li (ppm) x 5.323 /10,000
Authorisation
This announcement has been authorised for release by the Board of Astute.
More Information
Matt Healy
Executive Director
mhealy@astutemetals.com
+61 (0) 431 683 952
Nicholas Read
Media & Investor Relations
nicholas@readcorporate.com.au
+61 (0) 419 929 046
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Competent Persons
The information in this report that relates to Sampling Techniques and Data (Section 1) is based on
information compiled by Mr. Matthew Healy, a Competent Person who is a Member of The Australasian
Institute of Mining and Metallurgy (AusIMM Member number 303597). Mr. Healy is a full-time employee
of Astute Metals NL and is eligible to participate in a Loan Funded Share incentive plan of the Company.
Mr. Healy has sufficient experience that is relevant to the style of mineralisation and type of deposit under
consideration and to the activity being undertaken to qualify as a Competent Person as defined in the
2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves’. Mr. Healy consents to the inclusion in the report of the matters based on his information in the
form and context in which it appears.
The information in this report that relates to Reporting of Exploration Results (Section 2) is based on
information compiled by Mr. Richard Newport, principal partner of Richard Newport & Associates –
Consultant Geoscientists. Mr. Newport is a member of the Australian Institute of Geoscientists and has
sufficient experience which is relevant to the style of mineralisation and type of deposit under
consideration and to the activity which he is undertaking to qualify as a Competent Person under the
2012 Edition of the ’Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves‘. Mr. Newport consents to the inclusion in this announcement of the matters based on his
information in the form and context in which it appears.
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APPENDIX 1 - JORC Code, 2012 Edition – Table 1
Section 1 - Sampling Techniques and Data
Criteria
JORC Code explanation
Commentary
Sampling
techniques
Nature and quality of sampling (e.g. cut
channels, random chips, or specific
specialisedindustry standard measurement
tools appropriate to the minerals under
investigation, such as down hole gamma
sondes, or handheldXRF instruments, etc.).
These examples should not be taken as
limiting the broad meaning of sampling.
Rock chip samples were taken from
outcropping or shallowly subcropping rocks
using a geopick.
Include reference to measures taken to
ensuresample representivity and the
appropriate calibration of any
measurement tools or systems used.
Claystone hosted lithium deposits are thought to
form as a result of the weathering of
lithium-bearing volcanic glass within
tertiary-aged tuffaceous lacustrine sediments of
the mapped Ts3 unit. Inputs of lithium from
geothermal sources have also been proposed.
Aspects of the determination of
mineralisation thatare Material to the Public
Report.
In cases where ‘industry standard’ work has
been done this would be relatively simple
(e.g. ‘reverse circulation drilling was used to
obtain 1 m samples from which 3 kg was
pulverised to produce a 30 g charge for fire
assay’). In other cases, more explanation
may be required, suchas where there is
coarse gold that has inherentsampling
problems. Unusual commodities or
mineralisation types (e.g. submarine
nodules) may warrant disclosure of
detailed information.
Drilling
techniques
Drill type (e.g. core, reverse circulation, openholehammer, rotary air blast, auger, Bangka,
sonic, etc.) and details (e.g. core diameter,
triple or standard tube, depth of diamond tails,
face-sampling bit or other type, whether core
isoriented and if so, by what method, etc.).
Not applicable.
Drill sample
recovery
Method of recording and assessing core
andchip sample recoveries and results
assessed.
Not applicable.
Measures taken to maximise sample
recoveryand ensure representative nature
of the samples.
Whether a relationship exists between
sample recovery and grade and whether
sample bias may have occurred due to
preferential loss/gainof fine/coarse material.
Logging
Whether core and chip samples have
been geologically and geotechnically
logged to alevel of detail to support
appropriate MineralResource estimation,
mining studies and metallurgical studies.
Chip samples were logged for lithology (see
appendix 2)
Whether logging is qualitative or
quantitative innature. Core (or costean,
channel, etc.) photography.
The total length and percentage of the
relevantintersections logged.
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APPENDIX 1 - JORC Code, 2012 Edition – Table 1
Criteria
JORC Code explanation
Commentary
Subsampling
techniques
and sample
preparation
If core, whether cut or sawn and whether
quarter, half or all core taken.
Full samples were submitted to ALS
Laboratories in Reno for preparation and
analysis.
If non-core, whether riffled, tube sampled,
rotarysplit, etc. and whether sampled wet or
dry.
For all sample types, the nature, quality
and appropriateness of the sample
preparationtechnique.
Quality control procedures adopted for all
sub-sampling stages to maximise
representivityof samples.
Measures taken to ensure that the sampling
isrepresentative of the in-situ material
collected,including for instance results for
field duplicate/second-half sampling.
Quality of
assay data
and
laboratory
tests
Whether sample sizes are appropriate to
thegrain size of the material being sampled.
The nature, quality and appropriateness of
the assaying and laboratory procedures
used and whether the technique is
considered partial ortotal.
For geophysical tools, spectrometers,
handheldXRF instruments, etc., the
parameters used in determining the analysis
including instrument make and model,
reading times, calibrations factors applied
and their derivation, etc.
Nature of quality control procedures
adopted (e.g. standards, blanks, duplicates,
external laboratory checks) and whether
acceptable levels of accuracy (i.e. lack of
bias) and precisionhave been established.
Verification
of sampling
and
assaying
Samples analysed by method ME-MS41 which is
an ICP-MS method employing an aqua-regia
digest. Aqua-regia is not considered a ‘total’
digest for many elements however is
considered fit for purpose for lithium and has
been used extensively by other parties
exploring for lithium claystone deposits in the
USA.
Assay quality was monitored using pulp blanks,
as well as certified reference materials (CRMs)
at a range of lithium grades. Pulp blank results
indicated no material contamination of
samples from sample preparation or during the
analytical process. CRM results were within 3
standard deviations of certified values. No
material systematic bias nor other accuracy
related issues were identified.
The verification of significant intersections by
either independent or alternative company
personnel.
Sample intervals to be assigned a unique
sample identification number prior to sample
despatch
The use of twinned holes.
Lithium-mineralised claystone Certified
Reference Materials (standards)and pulp
blanks were inserted into the sample stream
at regular intervals (at least 1:25 ratio) to
monitor lab accuracy and potential
contamination during analytical processes
Documentation of primary data, data
entryprocedures, data verification, data
storage (physical and electronic)
protocols.
Discuss any adjustment to assay data.
Location of
data points
Accuracy and quality of surveys used to
locatedrill holes (collar and down-hole
surveys), trenches, mine workings and other
locations used in Mineral Resource
estimation.
Sample locations were pre-determined by
overlaying a grid and using hand-held GPS
to navigate to points. Locations are reported
in NAD83 UTM Zone 11. Expected site location
accuracy is +/- 10m
Specification of the grid system used.
Quality and adequacy of topographic
control.
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APPENDIX 1 - JORC Code, 2012 Edition – Table 1
Criteria
JORC Code explanation
Commentary
Data
spacing
and
distribution
Data spacing for reporting of Exploration Results.
Not applicable.
Whether the data spacing and distribution is
sufficient to establish the degree of geological
and grade continuity appropriate for the
MineralResource and Ore Reserve estimation
procedure(s) and classifications applied.
Whether sample compositing has been applied.
Orientation
of data in
relation to
geological
structure
Whether the orientation of sampling achieves
unbiased sampling of possible structures and
the extent to which this is known, considering the
deposit type.
Claystone beds are regionally shallow-dipping at
~20° to the east although locally this may vary
across the Project with some evidence of faulting
and potential folding
Sample
security
The measures taken to ensure sample security.
Samples stored at secured yard and shed located
in township of Currant until delivered by staff or
contractors to the ALS lab at Elko, NV
Audits or
reviews
The results of any audits or reviews of
samplingtechniques and data.
Not applicable
If the relationship between the drilling
orientation and the orientation of key
mineralised structures is considered to have
introduced a sampling bias, this should be
assessed and reported if material.
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APPENDIX 1 - JORC Code, 2012 Edition – Table 1
Section 2 - Reporting of Exploration Results
Criteria
JORC Code explanation
Commentary
Mineral
tenement
and land
tenure status
Type, reference name/number, location and
ownership including agreements or material
issues with third parties such as joint ventures,
partnerships, overriding royalties, native title
interests, historical sites, wilderness or national
park and environmental settings.
Red Mountain Claims (CRN001-556) held in
100% Astute subsidiary Needles Holdings Inc.
The security of the tenure held at the time of
reporting along with any known impediments to
obtaining a licence to operate in the area.
Exploration
done by
other parties
Acknowledgment and appraisal of exploration
byother parties.
Geology
Deposit type, geological setting and style of
mineralisation.
Claims located on Federal (BLM) Land
Drilling conducted on claims certified by the
Bureau of Land Management (BLM)
No known previous lithium exploration
conducted at Red Mountain
Exploration conducted elsewhere in Nevada by
other explorers referenced in announcement
body text
The principal target deposit style is claystone
hosted lithium mineralisation. Claystone hosted
lithium deposits are thought to form as a result of
the weathering of lithium-bearing volcanic glass
within tertiary-aged tuffaceous lacustrine
sediments of the mapped Ts3 unit.
Lacustrine environments formed as a result of
extensional tectonic regime that produced ‘basin
and range’ topography observed across the
stateof Nevada. Inputs of lithium from
geothermal sources have also been proposed.
Drill hole
Information
A summary of all information material to the
understanding of the exploration results
including a tabulation of the following
information for all Material drill holes:
◦ easting and northing of the drill hole collar
◦ elevation or RL (Reduced Level – elevation
above sea level in metres) of the drill hole
collar
◦ dip and azimuth of the hole
◦ down hole length and interception depth
◦ hole length.
Not applicable.
If the exclusion of this information is justified on
the basis that the information is not Material and
this exclusion does not detract from the
understanding of the report, the Competent
Person should clearly explain why this is the case.
Data
aggregation
methods
In reporting Exploration Results, weighting
averaging techniques, maximum and/or
minimum grade truncations (e.g. cutting of high
grades) and cut-off grades are usually Material
and should be stated.
Not applicable
Drill Intersections are quoted in both lithium ppm
and as wt% Lithium Carbonate Equivalent (LCE).
LCE is calculated as LCE = Li (ppm) x 5.323 /
10,000, as per industry conventions.
Where aggregate intercepts incorporate short
lengths of high grade results and longer lengths
of low grade results, the procedure used for such
aggregation should be stated and some
typical examples of such aggregations should
be shownin detail.
The assumptions used for any reporting of metal
equivalent values should be clearly stated.
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Section 2 Reporting of Exploration Results
Criteria
JORC Code explanation
Commentary
Relationship
between
mineralisation
widths and
intercept
lengths
These relationships are particularly important in
the reporting of Exploration Results.
Not applicable.
If the geometry of the mineralisation with respect
to the drill hole angle is known, its nature should
be reported.
If it is not known and only the down hole lengths
are reported, there should be a clear statement
to this effect (e.g. ‘down hole length, true width
notknown’).
Diagrams
Appropriate maps and sections (with scales)
andtabulations of intercepts should be included
for any significant discovery being reported
These should include, but not be limited to a plan
view of drill hole collar locations and
appropriate sectional views.
Included in ASX announcement
Balanced
reporting
Where comprehensive reporting of all Exploration
Results is not practicable, representative
reporting of both low and high grades and/or
widths should be practiced to avoid misleading
reporting of Exploration Results.
This release describes all relevant information
Other
substantive
exploration
data
Other exploration data, if meaningful and
material, should be reported including (but not
limited to): geological observations;
geophysicalsurvey results; geochemical survey
results; bulk samples – size and method of
treatment; metallurgical test results; bulk
density, groundwater, geotechnical and rock
characteristics; potential deleterious or
contaminating substances.
This release describes all relevant information
Further work
The nature and scale of planned further work
(e.g. tests for lateral extensions or depth
extensions orlarge-scale step-out drilling).
Rock chip results demonstrate further work at the
Red Mountain project is most likely warranted,
however this will be subject to receipt of the
remaining 8-holes worth of assay results
Diagrams clearly highlighting the areas of
possible extensions, including the main
geological interpretations and future drilling
areas, provided this information is not
commercially sensitive.
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APPENDIX 2 – Red Mountain Rock Chip
Sample Assay Table
Sample
ID
Easting
(NAD83)
Northing
(NAD83)
Li
(ppm)
Description
602247
637782.2
4288743
1935
Claystone
602248
637782.2
4288743
1215
Claystone with Colluvial Gravel
602249
637320.8
4288194
144
Claystone
602250
637320.8
4288194
99
Claystone with Colluvial Gravel
602251
637534.4
4288197
728
Claystone
602252
637534.4
4288197
510
Claystone Colluvial Gravel
602253
637263
4290297
29
Khaki tan Claystone
602254
637232
4290438
40
Light green tan sandy Claystone
602255
637577
4290547
26
Tan khaki Claystone
602256
637614
4290587
28
Tan light yellow/brown laminated sandy Claystone
602257
637487
4290660
14
Sandstone very fine grained and clayey
602258
637167
4290508
716
Khaki green Claystone
602259
639834
4294748
32
Clayey soil in a shaly rock scree
602260
640083
4295007
49
Clayey mudstone shale
602261
637099.9
4287805
564
Claystone - laminated
602262
637099.9
4287805
357
Claystone Colluvial Gravel
602263
637676.5
4286218
60
Claystone - laminated
602264
637676.5
4286218
42
Claystone Colluvial Gravel
602265
636569
4290199
373
Light brown/cream Claystone
602266
636636
4290236
125
Light brown Claystone
602267
636645
4290235
158
Light brown/cream Claystone
602268
636654
4290230
272
Light brown Claystone
602269
636629
4290222
133
Reddish cream wht claystone
602270
636532
4290176
359
Light brown/cream Claystone
602271
636543
4290172
130
Khaki tan Claystone, shaley habit
602272
636766
4290211
282
Very light brown claystone
602273
636825
4290183
152
Green/grey mudstone/claystone
602274
636830
4290195
152
Interbedded green/grey claystone and pale green sandstone
602275
636944
4291592
2550
Medium brown claystone
602276
636943
4291614
1695
Medium brown claystone
602277
637118
4291657
29
Medium brown/cream claystone with orange bands
602278
637049
4291594
14
Tan/cream claystone
602279
636965
4291168
2580
Light brown Claystone
602281
636955
4291169
2900
Med brown claystone
602282
636947
4291177
2200
Med brown claystone
602283
636940
4291173
17
Very fine grained reddish tan sandstone
602284
636423.1
4286202
1055
Green grey claystone
602201
637659
4285563
99
Volcaniclastic -fine grained Tuff
602202
637653
4285493
263
Light green fine grained sandy unit - ?Tuff
602203
637635
4285465
986
Claystone - Dark green
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APPENDIX 2 – Red Mountain Rock Chip
Sample Assay Table
Sample
ID
Easting Northing
Li
Description
(NAD83) (NAD83) (ppm)
602204
637817
4285431
46
Polymictic mass debris flow? Cobble size material
602205
637813
4285432
312
Sandy Claystone - volcaniclastic
602206
637813
4285429
200
Volcaniclastic sandy claystone - more soil than rock
602207
637816
4285422
55
Polymictic mass debris flow? Cobble size material
602208
637860
4285315
64
Limestone unit
602209
637857
4285294
173
Fine grained sandy tuffacious unit Light brown
602210
637781
4285407
899
Light green sandy clayey band 20-30cm between
602211
637778
4285418
504
Coarse sandy gravel unit - on either side of 602210
602212
637747
4285461
22
White 'bleached' fine grained Tuff
602213
637108
4290214
1395
Claystone
602214
637108
4290214
2180
Claystone
602215
637108
4290214
154
Claystone
602216
637235
4290131
2640 Claystone - soil/rock
602217
637216
4290194
212
Claystone - soil/rock
602218
637233
4290355
11
Light cream laminated calcarious sandy siltstone/mudstone
602219
637136
4290487
257
White 'bleached' fine grained Tuff
602220
637133
4290516
249
White 'bleached' fine grained Tuff
602221
637125
4290550
347
White 'bleached' fine grained Tuff
602222
637091
4290605
36
White 'bleached' fine grained Tuff
602223
637065
4290629
1235
Claystone, weathered Light brown Khaki Gry (Mottled)
602224
637066
4290652
1130
Claystone, weathered Light brown Khaki Gry (Mottled)
602225
637061
4290474
50
Cream/white + Light brown/orange fine grained Tuff
602226
637057
4290482
230
Limestone / Limey unit - hard
602227
637077
4290401
30
Cream/Wht + Light brown/Org fine grained Tuff
602228
636963
4290585
75
Light cream sandy Tuff
602229
636962
4290589
37
Light cream sandy Tuff
602230
636952
4290599
76
Limestone - Limey unit
602231
637080
4290682
4150
Light brown/green Claystone
602232
637079
4290686
2940 Claystone - mottled green/brown/white
602233
637086
4290672
1760
Claystone
602234
636895
4290417
137
Limestone
602235
637144
4290201
1820
Claystone
602236
637151
4290189
1730
Claystone
602237
637108
4290214
3030 Laminated Claystone
602238
637108
4290214
3520 Claystone
602241
637637
4285458
1340
Dark green Claystone
602242
637632
4285451
129
Limestone
602243
637630
4285348
65
Light green sandy unit / Tuff
602244
637531
4285230
597
Light green fine grained sandy Tuff
602245
637380
4285480
94
Green laminated interbedded silty sandy Tuff
602246
637351
4285460
375
Green Khaki siltstone/mudstone/claystone
Suite 6, Level 5, 189 Kent St, Sydney NSW 2000 | GPO Box 2733, Sydney NSW 2001
+61 (0) 2 8046 2799 | admin@astutemetals.com
www.astutemetals.com
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