Reed Resources increases Lithium Resource at Mt Marion Project by 220%

Australian diversified resources company Reed Resources (ASX: RDR), together with joint venture partner Mineral Resources (ASX: MIN), continues to prove up the world class nature of its Mt Marion Lithium project near Kalgoorlie, Western Australia.

The total contained lithium oxide resource increase by 220%, to 128,000 tonnes (Li2O) with total resources of 8.9 Mt @ 1.4% Li2O.

The planned production rate, subject to a decision to mine, is 200,000 per annum of +6.5% Li2O concentrate, which contains 13,000 tonnes lithium oxide (Li2O).

This upgraded resource is the first at the project since the previous resource/reserve estimate was compiled in 1996 and reported in compliance with the JORC Code 1989.

In recent times, the company has conducted an extensive drilling program at the project, these results, together with further modelling and evaluation of the deposits, are the basis of the new resource.

“This new resource estimate highlights the significant potential of the Mt Marion Lithium project and our opportunity to become a major participant in the world lithium market,” said Reed Resources Managing Director, Chris Reed.

The geological model was prepared by way of a collaborative effort by Hellman and Schofield Pty Ltd (H&S) and Reed, from data provided by Reed. Independent consultants H&S have completed data validation, analysis, domain coding and interpretation and subsequently undertaken a re-run of the Mineral Resource Estimates.

The new estimates give total contained mineral resources for the Mt Marion Deposit of 128,000 tonnes of lithium oxide (Li2O) above a cut off grade of 0.3% lithium oxide, reported below in accordance with the JORC Code and Guidelines. Details of the previous resource/reserve estimate are included in Table 2 for comparison.

The resource estimate was based on 197 RC holes (9,959m) and 8 diamond holes (499m) drilled by the Joint Venturers. Collar positions of drill holes completed for the 2010 resource estimate are shown in Figure 3. Drillhole spacing ranges from 30 x 30m to 80m x 40m.

The company is currently preparing a Mining Proposal and Works Approval for lodgement this month.

The Joint Venturers expect to mobilise a processing plant and related equipment with a production rate of 17,000 tonnes per month of +6.5% Li2O concentrate in 2010, subject to adecision to mine and obtaining all necessary approvals.

http://www.proactiveinvestors.com.au/companies/news/6436/reed-resources-increases-lithium-resource-at-mt-marion-project-by-220-6436.html