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Lithium Australia NL Sees Potential For Large Scale Lithium Deposit In Mexico

Lithium Australia NL (ASX:LIT) has a 25% interest in the Electra Project, located along trend from the giant Sonora lithium clay deposit in Mexico.

Recent assay results from Lithium Australia's joint venture partner, TSX listed Alix Resources (TSX:AIX), have identified a lithium-bearing 1.1 kilometre long zone.

Values as high as 246 parts per million lithium confirmed a target area with the potential of hosting economic lithium-bearing, clay-rich horizons.

The assays are similar to early stage findings at the adjacent Buenavista lithium deposit.

Additional sampling and geological mapping has been completed and assays are pending.

Electra Project

Lithium Australia and Alix's Electra Project comprises the Tule and Tecelote concessions covering 22,625 hectares in Mexico northwest state of Sonora.

Lithium Australia and Alix see application of technology to be the key to commercialising the lithium clay style deposits found in the region.

Both concessions target interpreted extensions of the lithium-bearing clays that extend from the Sonora Lithium Project.

Sonora is one of the world's largest lithium resources held in joint venture between Bacanora Minerals Ltd (CVE:BCN) and Rare Earth Minerals plc (LON:REM).

Sileach™

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.

Testing of the Sileach™ process is continuing at ANSTO Minerals, which is in its final stages ahead of initial pilot testing.

Recent results from testing confirmed extractions of greater than 90% lithium from lithium bearing silicates.

Analysis

These anomalous lithium values are encouraging and bear similarities to early stage findings on adjacent land holdings.

Once the next sampling assays are received a drilling program designed to further explore the lithium potential of this property is likely.

The Electra project is located within the world's largest lithium clay province.

Lithium Australia's interest in Electra is significant for two reasons, it leverages them to exploration in a world class province, and provides them with an opportunity to develop a commercial processing technology applicable to lithium clay deposits.

Lithium Australia has an upcoming initial pilot test work program with Pilbara Minerals which aims to commercialise the Sileach™ process.

The successful development of a commercial process to recover lithium from spodumene would place Lithium Australia at the leading edge of the lithium industry.

Lithium Australia's share price is up 220% over the past 12 months.

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

Lithium Australia now has a variety of lithium related alliances and joint ventures, which means technical resources are pooled and exploration costs are shared. It also helps produce steady news flow.

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