Microsoft Word - Q3 report_March 2016_Final.docx
ASX Release: 28 April 2016 ASX Code: VMC
QUARTERLY REPORT
FOR PERIOD ENDING 31 MARCH 2016
Venus Metals Corporation Limited's (Venus) activities conducted during the quarter ending 31 March 2016 include:
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MoU with Lithium Australia NL: The Company has executed a Memorandum of Understanding (MoU) with Lithium Australia NL (ASX: LIT) to initially test the commercial lithium potential of Venus' holdings in the Pilgangoora area - an emerging "lithium hot spot" in Western Australia.
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Greenbushes East Lithium-Tantalum Project in WA: The Company has applied for two strategic tenements in the world‐class Greenbushes lithium province. The Greenbushes mine in the Southwest Mineral Province of Western Australia is one of the world's largest producers of 'hard‐rock' lithium and tantalum. Venus Metals tenements lie to the east of the mine and abut Talison Lithium Australia's mining leases.
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Review of historical geological/geophysical data of Venus Lithium projects (Pilgangoora Northeast and Stannum projects in the Pilbara, the Nardoo project in the Capricorn and the Poona Project and the Greenbushes East Project) and delineation of potential target areas. A reconnaissance field trip to Pilgangoora, for rock chip/soil sampling, is planned for the coming field season.
Please Direct Enquiries to:
Matthew Hogan Kumar Arunachalam
Managing Director Executive Director
Ph: 08 9321 7541 Ph: 08 9321 7541
STRATEGIC LITHIUM-TANTALUM PROJECTS IN WA:
1.0 Project Background:
Venus Metals Corporation Limited ('Venus Metals') had previously made applications over four strategic lithium‐tantalum project areas in Western Australia, namely the Pilgangoora Northeast and Stannum projects in the Pilbara, the Nardoo project in the Capricorn and the Poona Project in the Murchison region (Figure 1). The Company has subsequently extended its tenement holdings (E45/4684) in the Pilgangoora region, a recognised 'lithium hot spot' covering an area of substantial pegmatite swarms (refer ASX release 21 January 2016).
In addition, the Company made applications for two tenements in the 'world‐class' Greenbushes lithium‐tantalum terrane in the Southwest of Western Australia.
2.0 Greenbushes East Lithium-Tantalum Project, Southwest Mineral Field, WA.
Venus Metals made applications for two strategic exploration licences in the Greenbushes region of Western Australia during the quarter. These new applications (ELA 70/4810 & 4814) (550 km2 ) is located 220 km to the south‐southeast of Perth in the Southwest Mineral Field of Western Australia and covers an area adjacent to, and east of, Talison Lithium Australia's world‐class Greenbushes lithium‐tantalum mine. The tenement areas contain outcropping pegmatitic stratigraphy, the host rock for lithium‐tantalum mineralisation in the region and show similarities of structure and geology setting to those of the mine area. Other tenement holders in region including Lithium Australia NL (ASX: LIT) and Metalicity (ASX: MCT) (Figure 2).
The recent applications at Greenbushes continue to build the Company's portfolio of lithium projects and further complement other lithium‐tantalum project areas applied for by Venus Metals in 2015. These project areas all cover, or are adjacent to, recognised lithium-tantalum mineralisation.
3.0 MoU with Lithium Australia NL:
The Company has executed a Memorandum of Understanding (MoU) with Lithium Australia NL (ASX: LIT) to initially test the commercial lithium potential of Venus' holdings in the Pilgangoora area - an emerging "lithium hot spot" in Western Australia with a view to exploiting mineralisation dominated by the lithium micas (lepidolite and zinnwaldite), spodumene and clay minerals. The broader objective of the partnership will be to determine if the potential exists for sufficient feedstock to feed a Pilbara lithium processing facility to produce high grade lithium carbonate and/or hydroxide for use in advanced hi‐tech applications including lithium ion batteries.
The terms of the MOU require that Lithium Australia produce a report outlining the ways in which the combined expertise of Venus and Lithium Australia can be optimised. Lithium Australia will pay a fee for exclusive access to the Venus ground and will sole fund exploration over the project tenements in the first year following tenement grant. Venus will retain 100% ownership of its Pilgangoora tenements. The test work program by Lithium Australia will include field inspections, data and observations across the project area and in the laboratory to confirm the suitability of the lithium mica, spodumene and clay materials within the MOU area as a source for battery grade lithium carbonate and lithium hydroxide (refer LIT ASX release 18 February 2016).
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Review of Historical Geological/Geophysical Data
The Company has continued reviewing the historical geological/geophysical data of Venus Lithium projects and delineation of potential target areas. Venus is planning a reconnaissance field trip to Pilgangoora with LIT for rockchip/soil sampling.
The Lithium Market1
The global lithium market is growing at a rapidly due to developments in the technology and energy sectors, especially in the use of lithium based batteries for automotive and domestic applications.
Presently the global lithium market consumes around 200,000 tonnes of lithium carbonate (or lithium carbonate equivalent, 'VCE') per annum. Two thirds of global consumption is utilised in ceramics, glass, polymers and alloys, however growth in the technology (smart phones and computers) and energy sectors (lithium batteries for automotive and home usage) may see consumption double to over 400,000 tonnes of LCE by 2025.
The short to medium term growth in the lithium market will be limited by supply constraints, with few new operations being commissioned and four producers controlling much of the market. Current price predictions indicate that LCE may rise to over US$7,000 in 2016. Hence new sources of lithium carbonate are required to meet growing demand.
References
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Lithium - The Future is Electric, Citi Research, 16 October 2015.
Competent Person's Statement
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr T. Putt of Exploration & Mining Information Systems, who is a member of The Australian Institute of Geoscientists. Mr Putt has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australian Code for Reporting of Exploration Results, Mineral Resource and Ore Reserves". Mr Putt consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Forward‐Looking Statements
This document may include forward‐looking statements. Forward‐looking statements include, but are not limited to, statements concerning Venus Metals Corporation Limited planned exploration program and other statements that are not historical facts. When used in this document, the words such as "could," "plan," "estimate," "expect," "intend," "may", "potential," "should," and similar expressions are forward‐looking statements. Although Venus Metals Corporation Ltd believes that its expectations reflected in these forward‐looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward‐looking statements.