Capital Mining LimitedASX: CMY, CMYO
Level 11, 216 St Georges Tce
Perth WA 6000
Telephone +61 8 9481 0389
Fax +61 8 9463 6103
www.capitalmining.com.au
Directors
Mr Peter Torney Mr Peter Dykes
Mr Anthony Dunlop
Company Secretary
Mrs Elizabeth Hunt
ASX Release
2 September 2016
CAPITAL MINING SECURES ADDITIONAL LITHIUM PROJECTS
FURTHER EXPANDS LITHIUM ASSET PORTFOLIO
Highlights
Capital Mining Limited (ASX: CMY) ("Capital" or "the Company") is pleased to announce it has further expanded its lithium-prospective project portfolio with the pegging of two projects in the Murchison District in Western Australia.
The projects comprise two exploration licence applications over a total area of 85.50 km2; the Bigbell South Project (ELA20/906) and the Mindoole Project (ELA20/907), refer Project Location map; Figure 1.
Both projects are considered prospective for lithium-rich spodumene bearing pegmatites, and are located in close proximity to known mineral occurrences associated with lithium- caesium-tantalum (LCT) pegmatites.
The new projects continue to expand the Company's lithium-focused asset portfolio, and are consistent with its project generation and exploration strategy. Capital has, to date, accumulated a lithium prospective ground position covering approximately 771km2 of sought after mineral fields in WA via a highly selective project generation process.
Its strategy moving forward is to commence systematic exploration programs across the project portfolio, and to also continue to pursue further quality acquisitions.
Exploration Rationale
The Bigbell South and Mindoole Projects are both considered prospective for rare-element granitic pegmatites of the LCT geochemical group, and have been identified and pegged on the basis that both demonstrate a strong conventional LCT Pegmatite model.
Pegmatite is composed of common granite minerals including quartz, feldspar and micas, as well as economically significant minerals containing elements such as lithium (spodumene), tantalum, niobium, tin and tungsten.
The projects demonstrate a granite and greenstone contact, which is recognised as a prime target zone (or 'goldilocks zone') for LCT pegmatites. An assessment of magnetics data over the project areas indicates the presence of greenstone, which further adds to the spodumene bearing pegmatite potential of the projects.
The Bigbell South Project lies adjacent to the Big Bell Gold Mine and is located 3km from an active pegmatite field, which hosts tin and beryllium occurrences - which are key indicators to potential fertile LCT pegmatite mineralisation (Figure 2).
The Mindoole Project is situated 5km north of the Patons Lode and Doreen LCT pegmatite field where Venus Metals Corporation (ASX: VMC) is exploring the Poona Lithium Project and Montezuma Mining (ASX: MZM) also has a ground holding (Figure 3).
Figure 1: Bigbell South and Mindoole Project locations.
Works Program
Capital plans to immediately commence a first phase reconnaissance, ground work program at the Bigbell South and Mindoole Projects. This will include soil sampling, rock chip sampling and mapping as part of the target identification and definition process, and will form part of the Company's progressive exploration of its lithium- prospectiveasset porfolio.
Upon grant of the tenements, which is expected in approximately three months, the Company will embark on a more detailed field work program to further define and refine target areas.
Location and Infrastructure
The Projects are located in an established and active mineral field in the Murchison region of WA, which hosts numerous active exploration and mining operations and where requisite labour and exploration equipment is readily available. Mindoole is the northernmost project and is located approximately 40km north west of the Bigbell South Project. The projects are situated in close proximity to the town of Cue and approximately 330km from the port of Geraldton. The tenements are accessible via main roads, regional roads plus secondary roads and tracks.
Figure 2: BigBell South Project location.
Figure 3: Mindoole Project location.
New Project Opportunities
Capital continues to assess new lithium project opportunities as well as projects in other demand-driven commodities as part of its ongoing project generation and acquisition process. The Company will update the market in due course on any further acquisitions to its project portfolio.
ENDS
Peter Dykes Director