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Lithium Australia NL Commences Exploration Near World's Largest Lithium Mine

Lithium Australia NL (ASX:LIT) has commenced exploration in the Greenbushes area of Western Australia, home of the world's largest lithium mine.

This comes after the granting of its first exploration licence in the area, which is considered prospective for lithium mineralisation.

In recent times there has been significant interest rekindled in the Greenbushes area, which currently produces about 40% of the world's lithium from a single mining operation.

Despite being an active mining area since the 1880s, much of the prior exploration work was focused on tin and tantalum.

Adrian Griffin, managing director, commented: "Greenbushes is certainly elephant country when it comes to lithium.

We are pleased with our ground position and have the personnel and technology to drive the most effective exploration campaign.

Recent activity in the area rivals that of the Pilgangoora Hot Spot and we are one of the few companies firmly established in both locations."

Exploration strategy

Lithium Australia will commence work immediately with low-impact exploration, including field mapping and real time lithium assays using laser-induced breakdown spectroscopy.

This will be combined with field portable x-ray fluorescence (NYSE:XRF) to develop a broad geochemical spectrum to provide the highest probability of detecting the signature of buried pegmatites.

Background

Lithium Australia is a lithium technology company with projects in Western Australia, Northern Territory, Czech Republic and Mexico.

Sileach™ is a market leading metal extraction technology owned by Lithium Australia.

The Sileach™ process is designed to recover lithium from silicates without the expensive roasting step that has long been the main stay of the lithium recovery process.

In March, the company began to fast track pilot plant testing of the Coolgardie lithium deposit using the Sileach™ process.

Most recently the company has been developing a long-term strategy for the establishment of a lithium processing hub in Port Hedland, Western Australia.

Analysis

Lithium Australia continues to produce price sensitive news, which has contributed to a circa 65% share price increase year to date.

With exploration ongoing at multiple projects, pilot testing of the Sileach™ process and involvement in industry activities such as the processing hub, the news flow is likely to continue.

Furthermore, Lithium Australia are set to present at the Lithium Battery Conference in Sydney, Australia on 24-25 May, 2016.

The company has positioned itself well within a strong lithium market by developing both a processing technology that is potentially applicable on a global scale and a global portfolio of lithium projects.

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