Firetail Resources Exploration Accelerates at Yalgoo Lithium Project in Collaboration with SensOre

7 November 2023 10:23

Firetail Resources Limited (ASX: FTL) has successfully completed a farm-in agreement in collaboration with SensOre (ASX: S3N) and its joint-venture subsidiary, Exploration Ventures AI Pty (EXAI), along with German resource investment group Deutsche Rohstoff AG, to expedite exploration activities within the Yalgoo Lithium Project in Western Australia.


Figure 1: Yalgoo Dalgaranga Lithium Project Showing FTL Drilling & Definition of 25km “Goldilocks Zone”

Key Highlights of the Farm-In Agreement

The terms of the agreement offer a detailed framework for EXAI’s involvement, enabling them to earn a 51% beneficial interest in the Lithium Rights in E59/E2252 by financing the initial $1.5 million of Farm-in Expenditure. In addition, under this agreement, EXAI is poised to earn up to 80% of the lithium rights on tenement E59/E2252 by investing $3.5 million in two stages.

Additional considerations of up to $600,000, along with various conditions and mechanisms, are in place to ensure a balanced and mutually beneficial partnership, contingent upon the delivery of a maiden Mineral Resource Estimate (MRE) and Pre-feasibility Study (PFS).

Leveraging SensOre’s AI Technology

One of the key highlights of the collaboration is SensOre’s identification of Lithium-Caesium-Tantalum (LCT) mineralisation using its proprietary technology.

This breakthrough will empower both companies to work closely together in identifying and confirming Lithium exploration targets within the Yalgoo region.

The agreement goes beyond the farm-in deal, as SensOre will provide Firetail access to its cutting-edge AI technology across the broader Yalgoo and Dalgaranga Lithium Projects.

Exploration Successes in Yalgoo

Exploration in Yalgoo has been characterised by a systematic approach, including surface mapping and geochemical sampling, leading to the identification of a 25km “Goldilocks Zone” with confirmed LCT pegmatites.

The Company’s maiden reverse-circulation (RC) drilling campaign in this zone revealed high-grade rubidium, further igniting interest in critical minerals with potential applications for decarbonisation.

A Fertile Lithium Hub

The Johnson Well prospect, located 8km southeast of Yalgoo, showcased fertile pegmatites with impressive rock chip assay results.

Subsequent RC drilling unveiled pegmatites extending over a significant strike length, with encouraging assay results confirming high lithium grades.

The presence of lepidolite and zinnwaldite in the pegmatites, along with potassium feldspar, albite, muscovite, and biotite, is also indicative of rich lithium mineralisation.

Future Exploration Initiatives

Looking ahead, Firetail’s exploration strategy encompasses diamond drilling at the Picha Copper Project in Peru, expected to last 2-3 months.

Regulatory approvals are in place for further drilling, which is anticipated to yield valuable insights into the Project’s potential.

In Western Australia, the Company plans to initiate an RC drilling campaign to follow up on previous successes at the Johnson Well Prospect. Simultaneously, regional target generation, soil sampling, and detailed petrographic and mineralogical studies will be conducted to better understand the pegmatite mineralogy at the Yalgoo and Dalgaranga Lithium Projects.

Firetail Executive Chairman Brett Grosvenor said the agreement with SensOre enables the Firetail team to continue to concentrate efforts on the current targets identified, whilst simultaneously unlocking the potential of the other tenements in the region.

“Firetail has its initial drill program underway at the Picha Copper Project in Peru, and we are delighted to be able to progress our exploration activities across our portfolio in collaboration with SensOre,” he said.

“This is a great outcome for FTL shareholders and we look forward to working with the SensOre team in the coming months.”

SensOre Executive Director and CEO, Richard Taylor, also stated, “We are delighted to have the opportunity to collaborate with Firetail in this LCT-prospective region, where the FTL team has made great progress with their exploration so far.”

“We are excited to see the value that SensOre will be able to bring with our proprietary AI technology in exploring the wider Yalgoo and Dalgaranga Project area.”

FTL’s Australian Stock Exchange-listed share price is currently trading at 10 cents (10.00am UTC+ 8 hours).

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