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Lithium Australia NL Forms The Goldfields Lithium Alliance

May 15, 2016 1:36 AM ET
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Lithium Australia NL (ASX:LIT) has teamed up with Cazaly Resources Ltd (ASX:CAZ) to form the Goldfields Lithium Alliance (GLiA).

The GLiA combines the two company's present, and future lithium mineral interests within a 100 kilometre radius of Kalgoorlie, Western Australia, for an initial period of 5 years.

The alliance will significantly enhance the technical and land management resources available to advance lithium projects within the Goldfields region.

The GLiA is the third alliance Lithium Australia has formed in Western Australia and highlights the value of the company's unique lithium extraction technology, Sileach which can extract lithium from any silicates without roasting.

It follows an MoU signed with Pilbara Minerals Limited (ASX:PLS) in 2014 and over PLS' Pilgangoora licences and an MoU signed withVenus Metals Corporation Ltd (ASX: VMC) announced in February 2016 over VMC's Pilgangoora assets.

LIT also has a joint venture with Tungsten Mining (ASX:TGN) at Lake Seabrook in Western Australia, an 80% exploration interest at Greenbushes, a 100% interest in the Ravensthorpe Project Western Australia and a joint venture with TSX listed Alix Resources (TSX:AIX) on the Electra project in Sonora,

Lithium Australia's managing director Adrian Griffin said: "At Lithium Australia we see the hard rock as being the future of lithium production.

The GLiA with Cazaly provides an extra piece in the supply puzzle within which we strive to reduce the cost of lithium chemicals to the lowest in the market.

We value the partnership with Cazaly as it brings complimentary expertise to our efforts in the Goldfields enabling greater penetration into the opportunities offered by the region."


Equity in the GLiA will be split 50/50 between Lithium Australia and Cazaly.

The GLiA will include all interests of both companies within the designated area.

This provides Lithium Australia with immediate access to Cazaly's recently announced Kangaroo Hills Lithium Project.

This project is in close proximity to Lithium Australia's Coolgardie Rare Metals Venture (OTCQB:CRMV) in which Focus Minerals (ASX: FML) has a 20% free carry.

Lithium Australia's interest in the CRMV is now included in the GLiA.

Cazaly will not be required to contribute to the cost of further metallurgical test work or feasibility costs associated with Lepidolite Hill, one of the historic lithium mines within the CRMV package.

Kangaroo Hills Lithium Project

Kangaroo Hills consists of 11 tenements covering 1,820+ hectares west of the historic Londonderry, Lepidolite Hill and Tantalite Hill mines.

Recently completed reconnaissance field work over the project has confirmed the presence of pegmatites within the tenements.

Surface cover in the area prevents any clear indication of their true size and extent.

Further evaluation of these pegmatite bodies will be conducted.


The GLiA is further evidence of how Lithium Australia will leverage its Sileach extraction technology to gain exposure to access more lithium projects as potential candidates for licensing of the technology.

Lithium Australia shares are trading at $0.24, up 150% over the past year.

Lithium Australia now has a variety of alliances and joint ventures, which means technical resources are pooled and exploration costs are shared.

Lithium Australia now has a large portfolio of lithium projects which they own or have interests in, which can produce a steady flow of price sensitive news.

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