Resource model, 2009 resource estimate, showing blocks coloured by grade and dolerite dykes (grey). Isometric view looking southeast
Perth, May 27, 2009 AEST (ABN Newswire) - Emerging lithium producer, Galaxy Resources Limited (ASX:GXY) is pleased to announce a new resource statement for the Mt Cattlin Lithium-Tantalum project near Ravensthorpe, Western Australia. The previous resource estimation was released in December 2007 and since then, additional drilling, modelling and evaluation conducted as part of the Mt Cattlin Definitive Feasibility Study (DFS) has increased the project's total contained lithium oxide resource by 26% to 155,000 tonnes.
Galaxy Managing Director Iggy Tan said the new resource statement underscored Galaxy's potential to be a long term lithium producer.
"This new resource estimate - with a substantially increased resource and grade - highlights the significant potential of the Mt Cattlin Lithium-Tantalum project and our opportunity to become a major participant in the world lithium market," said Mr Tan.
Resources
The geological model was prepared by Galaxy and the estimation was prepared by resource consultants Hellman and Schofield Pty Ltd (H&S). This new estimate gives contained mineral resources for the Mt Cattlin Deposit of 155,000 tonnes of lithium oxide (Li2O) and 4.83 million pounds of tantalum pentoxide (Ta2O5) above a cut off grade of 0.4% lithium oxide, reported below in accordance with the JORC Code and Guidelines. The classification of the Mt Cattlin mineral resource is shown below in Table 1 and a summary of the estimation methodology used is included at the end of this announcement.
Details of the previous resource estimate completed in December 2007 are included in Table 2 for comparison.
Table 1 - May 2009 Mt Cattlin Global Resource Estimate
--------------------------------------Resource Tonnes Li2O % Ta2O5 ppm--------------------------------------Measured 2,260,000 1.19 143Indicated 7,064,000 1.10 156Inferred 5,044,000 1.01 152--------------------------------------TOTAL 14,368,000 1.08 153--------------------------------------
Note: Li2O cutoff grade >= 0.4% Li2O. Figures in the above table may not sum due to roundingTable 2 - Dec 2007 Mt Cattlin Global Resource Estimate--------------------------------------Resource Tonnes Li2O % Ta2O5 ppm--------------------------------------Measured 1,090,000 1.07 177Indicated 6,417,000 1.02 125Inferred 4,798,000 0.96 140--------------------------------------TOTAL 12,305,000 1.00 135--------------------------------------
Note: Li2O cutoff grade >= 0.4% Li2O. Figures in the above table may not sum due to rounding
The new resource estimate has increased the total tonnes for all resource categories by 2.06 million tonnes, with a 24% increase in indicated and measured resource tonnes compared to 2007. Lithium grades have increased by 8%, while tantalum pentoxide grade has increased by 13% compared to December 2007.
The 2009 resource estimate included an additional 110 RC holes (6425m) and 6 diamond holes (163m) compared to the 2007 estimate. Collar positions of drill holes completed after the 2007 resource estimate are shown in Figure 1. This drilling infilled some areas that were previously drilled at 80m x 80m to 40 x 40m hole spacing. Some extension drilling was also completed at the margins of the resource, particularly in the west and north.
The geological model has been significantly updated from the model used in 2007 and has incorporated more geological information, with additional dykes and faults modelled. The wireframes are more closely constrained to the pegmatite horizons and exclude significant waste material between pegmatite horizons that had been included in the 2007 model.
The increase in lithium and tantalum grades is mainly due to the exclusion of waste material, in addition to greater continuity of higher grade zones with increased drill density. Tonnage has increased mainly as a result of additional mineralisation intersected in extension drilling completed in 2008.
Galaxy is planning additional drilling to complete coverage in zones where historical drilling was not assayed for lithium, in addition to following up strike extensions of
About Galaxy Resources Limited
Galaxy Resources Limited (ASX:GXY) (OTCMKTS:GALXF) is an international S&P / ASX 200 Index company with lithium production facilities, hard rock mines and brine assets in Australia, Canada and Argentina. It wholly owns and operates the Mt Cattlin mine in Ravensthorpe Western Australia, which is currently producing spodumene and tantalum concentrate, and the James Bay lithium pegmatite project in Quebec, Canada.
Galaxy is advancing plans to develop the Sal de Vida lithium and potash brine project in Argentina situated in the lithium triangle (where Chile, Argentina and Bolivia meet), which is currently the source of 60% of global lithium production. Sal de Vida has excellent potential as a low cost brine-based lithium carbonate production facility.
Lithium compounds are used in the manufacture of ceramics, glass, and consumer electronics and are an essential cathode material for long life lithium-ion batteries used in hybrid and electric vehicles, as well as mass energy storage systems. Galaxy is bullish about the global lithium demand outlook and is aiming to become a major producer of lithium products.
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