ION Energy Makes New Lithium Discovery With Up To 1,502 Ppm In Mongolia
Seeking Alpha Analyst Since 2013
Summary
- Drilling only just started.
- Just 12.5% of results in.
- Lithium values of up to 1,502 ppm.
ON Energy Limited (TSXV: ION; FRA: 5YB) reports a new lithium discovery from its Baavhai Uul Lithium Salar project in southeastern Mongolia. Geologists have christened the new discovery the White Wolf Prospect. A total of 222 auger holes with a total length of 1304.5 meters have been drilled. To date, only 12.5% of the drill results have been delivered.
Management considered the initial drill results "very encouraging", with the new discovery on the White Wolf Prospect standing out in particular. Hole AU-17 returned results of up to 1,502 ppm lithium in clays and evaporites, with the hole averaging 700 ppm lithium from as shallow as 0.5 to 3.5 meters. Drill hole AU-20 averaged 650 ppm lithium at a depth of 4 m to 6 m, with the final sample from the hole returning 860 ppm lithium.
The Company has deployed three drill rigs on the Baavhai Uul Lithium Salar project and has now completed an initial shallow drilling program of 222 holes. Holes were drilled to a maximum depth of six meters with samples taken every 0.50 meters. Holes were drilled over 1 kilometer spacing, representing an initial comprehensive pass through the concessions. Results from additional drill holes will be received by the Company in the coming months.
Ali Haji, CEO & Director of ION Energy Ltd explained, "The ION team is extremely pleased with these very early drill results. This is an extensive regional drill program and we can already see that further drilling is warranted at White Wolf."Exploration programs at the Company's projects in Mongolia continue and further results are expected in the coming months
Figure 1: Baavhai Uul is located in the Gobi Desert. The project is on the doorstep of the world's largest lithium consumer, China.
Figure 2: A lot of territory. Drilling rig at Baavhai Uul.
ION Energy Ltd. is dedicated to exploring and developing Mongolia's lithium salars. ION's flagship project is the Baavhai Uul lithium brine project, which covers over 81,000 hectares. In addition, ION also owns the over 29,000 hectare highly prospective Urgakh Naran lithium brine license in Dorngovi Province, Mongolia.
Conclusion: ION Energy's Baavhai Uul exploration area is about eight times the size of the Vancouver metropolitan area. Even 222 drill holes are only the beginning, and it should be noted that only 12.5 percent of these have been published. This makes the rapid success all the more remarkable. The measured lithium contents are in no way inferior to the contents known from known salars in South America. The difference, however, is that Mongolia is strategically located on the doorstep of the large Chinese lithium industry. One can well imagine that some of the Chinese players are already following ION Energy's results with growing interest. ION Energy could be at the start of something really big. We'll stay tuned to the story.
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