Easing the lithium squeeze

The lithium market is hot right now because there is simply insufficient availability, with more than half of the world’s increasing short supply coming from hard rock Spodumene in Western Australia.

The International Energy Agency predicts that demand for lithium-ion batteries for portable power devices, energy storage and particularly EVs could lead to demand outstripping supply in less than three years.

Red Dirt Metals (ASX: RDT) is a handful of companies developing newly discovered hard rock lithium projects in WA – projects critical for avoiding an extended lithium squeeze within the next few years and capable of putting the brakes on global decarbonisation trajectories in the coming decades.

The Company aims to be Australia’s next big lithium producer, focusing on the rapid development of its Mt Ida lithium project near the Menzies in the state’s goldfields following aggressive exploration since acquiring 26 tenements from Ora Banda Mining in 2021.

More than 65,000 metres of drilling (about half the distance from Washington, D.C. to New York City) since the acquisition has led to the discovery of multiple high-grade open lithium deposits and clear sight to a final investment decision for the project early as next year.

Mt Ida Lithium Project in Western Australia.

This timely achievement was significantly boosted in the last days of September when the extended exploration recorded the best intercept to date of 28.9 metres for 1.92 per cent lithium (Li2O) and 187ppm Tantalum
oxide (Ta2O5) from 318.5 metres.

At the time of publication, Red Dirt was expecting to announce its Mineral Resource Estimate as Spodumene Concentrate 6% heads north of US$5000 per tonne, making speed to market the critical factor.

The Company believes it has the gravitas to expedite the project’s development, which remains highly prospective for discoveries and a “massive value-add” because Metallurgical testwork demonstrates remarkable lithium recoveries and simple processing capability.

The highly experienced technical team share an aggressive approach wasting little time getting underway with Pre-Feasibility Study planning with the testwork ongoing and the results to be included as part of the study.

Meanwhile, the commercial team is advancing offtake supply negotiations, including possible supply structure arrangements with future partners.

“We must get this asset into production as fast as possible,” Red Dirt Managing Director Mathew Boyes says.

“Key components of this story include offtake partners, strategic partners, and a clear development pathway.

“The asset is on granted mining tenure in Western Australia and placed in an excellent geographical position being close infrastructure with freight access available from the Esperance or Geraldton ports.

“The size, simplicity, and continued highly prospective nature of this project combined with the fact that it all exists in a prime location within tier-1 mining jurisdiction are the factors that excite me most.”

The Company will now shift the drilling focus towards regional exploration and the maiden drill programme at the recently acquired Yinnetharra Project in November this year.

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