The Kali Metals Ltd (ASX: KM1) share price is currently up another 46% after a strong first day on the ASX.
This is a new ASX lithium share, which says its portfolio of assets represents “one of the largest and most prospective exploration packages across Australia’s world leading hard-rock lithium field.”
Its exploration locations are near existing, emerging and unexplored lithium and critical minerals regions in WA, NSW and Victoria.
Lithium identified
That company announced today that spodumene has been identified in multiple areas at the Spargoville project, one its projects within the Higginsville Lithium District.
The Higginsville Lithium District covers approximately 1,571km of land holding, with Kali owning 100% of the lithium and associated battery mineral rights across these tenements.
Kali revealed assays from rock chip samples returned results of up to 3.69% Li2O, which was in the Parker-Grubb prospect.
The first pass soil sampling program has been completed at Spargoville and Widgiemooltha projections, with ongoing soil sampling programs planned to cover all eight projects in 2024.
A reverse circulation drilling program at the Spargoville project is scheduled to commence in the first half of 2024, the first lithium-focused drilling undertaken in the area.
Management commentary
The Kali Metals General Manager of Geology, Stuart Peterson, said:
The Higginsville Lithium District portfolio has already proven to be prospective for lithium exploration with spodumene identified in multiple locations. Our exploration team, who have extensive lithium exploration experience, have set up ongoing exploration pathways for identifying new lithium discoveries across what is an impressive, district scale tenement holding.
New shareholder
It was also announced today that Kali Metals has a new substantial shareholder – Mineral Resources Ltd (ASX: MIN).
Mineral Resources has operations across mining services, iron ore mining and lithium mining. It does make sense that Mineral Resources would be interested in this business considering it’s pursuing a growth strategy in lithium.
Mineral Resources has decided to take up a stake of 14.37 million Kali Metals shares, which equates to 9.97% of the company.
Mineral Resources noted there has been media publicity regarding a shareholding of Mineral Resources Managing Director Chris Ellison in Kali Metals of 4.85%. Those shares are held by Mr Ellison in his personal capacity and Mineral Resources does not have a relevant interest.
Final thoughts on the Kali Metals share price
The company has generated a lot of excitement already. If it’s able to turn these promising findings into lithium projects then it could become a much bigger business, but it’s early to say that will happen, and a lot needs to go right. It’s possible it will need to do a capital raising to fund the construction of operations.
It certainly seems one to watch though.
