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Greentech Metals Share Price Soars on Lithium Pegmatite Discovery

15 June 2023 14:25

Greentech Metals ASX-Listed share price has skyrocketed over 247 per cent today on the back of the Company uncovering a high-grade lithium pegmatite bearing zone with rock chip grades up to 1.65% Li2O at its Ruth Well Project in Western Australia’s West Pilbara region.

Pegmatite Potential

The newly christened Ruth Well pegmatite zone can be traced for up to 6 kilometres of strike and is up to 200 metres wide, with the zone also remaining open in all directions.

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Figure 1: Location of the Pegmatite Bearing Zone

The zone was defined from 7 rock chip samples taken from Ruth Well as part of an initial reconnaissance program completed over a number of GRE’s exploration licences, which showed compelling results for lithium mineralisation leading to a further 15 samples being collected which both confirmed initial results and the strike length.

Highlight returns include:

o 1.65% Li2O Sample No 23GT06_006
o 1.63% Li2O Sample No 23GT10_003
o 1.03% Li2O Sample No 23GT10_012
o 0.57% Li2O Sample No 23GT10_002
o 0.36% Li2O Sample No 23GT10_015

Greentech is currently awaiting assays of an additional forty rock chip samples taken from along the entire 6km strike length.

Exploration Partners

GRE will waste no time following up on this compelling discovery, with the Company also having just contracted industry-leading lithium exploration and development team, Obsidian Metals Group, to assist in exploring for, evaluating and potentially developing lithium-bearing pegmatites throughout its tenement package and the broader West Pilbara region.

The two companies have entered into a service agreement that will see OMG and its investors pump $1 million dollars into GRE through the placement of 6,944,445 fully paid ordinary shares priced at $0.144 (a 30 per cent premium to GRE’s last closing price).

Funds raised will be fast-tracked to accelerate the Company’s WA lithium exploration strategy, with an extensive exploration pipeline including further rock chip sampling, soil geochemistry and trenching programs already planned at Ruth Well to define priority target areas.

Overseeing this exploration campaign will be entrusted to Michael Fotios, a prominent figure in the lithium industry and the founder of both Stalwart and Galaxy Resources. Notably, Galaxy Resources is now a subsidiary of Allkem Group, the fifth largest lithium producer globally. Leveraging his vast expertise in successfully guiding lithium projects from the exploration phase to full-scale production, Fotios will play a vital role in implementing Greentech’s lithium strategy.

The Company is now in the process of preparing a programme of work for a maiden drilling campaign at Ruth Well, which will commence subject to relevant approvals.

Looking Forward

The Company emphasised that the partnership signifies robust support for GreenTech and underscores the quality and potential value of its West Pilbara assets.

“This partnership will allow GreenTech to leverage OMG’s extensive technical expertise in pegmatite-hosted lithium exploration, whilst also benefiting from OMG’s substantial network of contacts in the global lithium sector,” Executive Director Thomas Reddicliffe.

“We are very encouraged by these high-grade lithium assays from our reconnaissance program at Ruth Well, which has confirmed the discovery of spodumene-bearing pegmatites within our tenements. The West Pilbara region is continuing to attract significant interest from listed companies and investors and GreenTech has secured a strategic and highly prospective foothold.”

GRE’s Australian Stock Exchange-listed share price has risen 247.61 per cent today, currently selling at 36.5c (1:42 pm UTC+ 8 hours).

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