Intra Energy Corporation Ltd (ASX:IEC) has acquired an 80% interest in the Maggie Hays Hill (MHH) Lithium Project in the Lake Johnston region of Western Australia from Global Uranium and Enrichment Ltd (GUE).
Described as “a compelling exploration opportunity”, the project, 25 kilometres north of the recent Burmeister Hill and Lake Medcalf spodumene discoveries, contains outcropping pegmatites along a 2-kilometre trend and a further 5 kilometres under shallow cover.
The strong lithium-in-soil anomaly was discovered in 2021 by GUE while exploring for gold.
Immediate action
Some of the historical fieldwork carried out at the MHH Project returned assays as high as the soil results at the newly identified Burmeister spodumene deposit.
IEC intends to commence mapping and sampling work across the exposed pegmatites immediately while simultaneously applying for heritage and drilling clearances.
Drilling targets along the eastern and northern parts of the tenement, where no modern exploration has occurred, will be the immediate focus.
Tenement location map.
“Exciting opportunity”
“The acquisition of the MHH Project opens the exciting opportunity to IEC for advanced exploration for lithium, gold and nickel in the well-known Maggie Hays Hill area of southern Western Australia,” IEC chairman Graeme Robertson said.
“Initial work done by IEC and historical exploration has identified visible outcropping pegmatites with recently discovered spodumene deposits to the south providing potential for lithium.
“As this is a more advanced area than other IEC exploration tenements, the company proposes to launch an accelerated exploration program and intends to apply for the necessary permits to conduct drilling as soon as possible.”
Gold and nickel too
The MHH Project is accessible via well-formed tracks, particularly on the southern end and is also prospective for gold and nickel.
Gold targets include a series of historical workings on the western side of Maggie Hay Hill, where reverse circulation (RC) drilling identified 2 metres at 11 g/t gold, 1 metre at 1.7 g/t gold and 3 metres at 1.7 g/t.
On the eastern side, a separate zone of old workings was tested with a 118-metre RC hole that intersected 7 metres at 0.48 g/t gold, including 1 metre at 1.5 g/t gold in mafic volcanic rocks.
The project also includes a 1,500-metre-long nickel deposit, where an average nickel content of 0.2% was intersected along a 90-metre interval of cumulate ultramafic rocks.
Historical 2021 soil sampling results highlighting the lithium trend.
Transaction terms
IEC will acquire the 80% interest on exploration licence E63/2039 for A$175,000 in cash, 30 million in IEC shares, and a 1% gross revenue royalty.
It will also make deferred payments of 60 million shares upon achieving certain milestones, such as obtaining five rock chip samples with a grade of at least 1% Li2O.
The ASX-lister is required to spend at least $500,000 on exploration within 12 months of the acquisition, failing which it will have to transfer its interest in the project back to GUE, which will retain a 20% interest free-carried to a bankable feasibility study.
“Outstanding opportunity”
IEC principal geologist Todd Hibberd said: “The acquisition of the MHH Project is an outstanding opportunity for the company.
“The soil anomalism combined with outcropping pegmatites in a region with two recently discovered spodumene deposits in the same rock units provides a compelling exploration opportunity that IEC intends to advance rapidly.”
The parties will enter into a joint venture agreement upon completion of the acquisition.
GUE is disposing of this asset as it is now focused on American uranium projects.