Ora Banda Mining Limited (OBM) has announced the results of its maiden drilling program at the Federal Flag prospect near the Davyhurst Processing Plant.
According to OBM, lithium mineralisation at Federal Flag was observed in drill spoil during the field mapping exercise, along with a small exposure in the high wall of a shallow open pit that was historically mined for gold.
Observations on the core suggest that the pegmatites pre-date the later gold mineralisation, with the company saying further work is needed to identify the extent of the pegmatite swarm.
It added that X-ray diffraction and petrography confirmed that spodumene is the dominant lithium-bearing material in the area.
Regional rock chip sampling supported the collection of 209 samples, 86 of which contained anomalous lithium and seven that contained spodumene.
Work started in December 2022 with desktop studies and extensive field mapping generating immediate drilling targets starting at the Federal Flag prospect.
OBM added that initial regional reconnaissance identified the areas of Barney, Waihi, Young Australian, Gila and Siberia as hosting lithium-bearing lithium-cesium-tantalum (LCT) pegmatite swarms.
Further regional exploration and progression of all identified lithium occurrences will be continued as part of the company’s strategy to create value from investing in exploration.
OBM Managing Director Luke Creagh said that though initial results are encouraging, the company will continue its drill programs to further unlock the lithium potential of the Federal Flag prospect.
“The fact that we have intersected high-grade spodumene in the first hole targeting lithium prospectivity is both a testament to the excellent work completed by the geology team and the outstanding potential of the entire tenement package,” he added.
Creagh noted that the exploration program will not compromise its objective to find a second high-grade underground mine to drive further production growth and increase cash flow for the company.
