Galaxy Resources Limited (ASX:GXY) Extends Mt Cattlin Lithium Resource Base
Perth, Sep 9, 2009 AEST (ABN Newswire) - Emerging lithium producer, Galaxy Resources Limited (ASX:GXY)(PINK:GALXF) today announced it has significantly extended its tenement footprint near the Mt Cattlin Project at Ravensthorpe in Western Australia through an agreement to acquire an 80% interest in a block of tenements from Traka Resources Limited.
The acquisition will further extend the life of the Project and increase the overall robust strength of the mine. The tenement block, which is largely located on cleared farmland, is contiguous with Galaxy's 100% owned Mt Cattlin tenements.
Managing Director, Mr Iggy Tan said that the Traka ground covered a similar geological sequence to that of Mt Cattlin and contains a number of spodumene (lithium)-bearing pegmatite outcrops. Rock chip sampling of pegmatite outcrops on the tenement package have returned significant Li2O values showing excellent potential for complex, lithium tantalum-bearing pegmatites.
Mr Tan said the acquisition of the tenements clearly demonstrated Galaxy's intent to extend the life of the mine and build a world's-best lithium production company.
"Our clear intent it to fast track moves towards production and build a sustainable resource and tenement base," Mr Tan said. "This acquisition is a clear example of the Company's intent to capture a large part of total world lithium production at a time when vehicle manufacturers are clearly showing a preference towards long life, battery fuel cell vehicles."
Further early stage work at the Traka tenements has shown that rock chip sampling of pegmatite outcrops on farmland in the west of the tenement package has returned significant Li2O values. In particular, of seven rock chip grab samples taken over a strike length of more than 500m from one subcropping pegmatite, five samples returned values over 0.70% Li2O, with a maximum of 2.04% Li2O. Galaxy plans to drill test this target in the near future and is currently arranging the required permitting.
In addition, diamond drilling by previous companies exploring for gold on the tenements have encountered significant widths of pegmatites, which will also be followed up by Galaxy.
For the complete Galaxy Resources ASX Announcement, please click the link below:
http://www.abnnewswire.net/media/en/docs/61398-ASX-GXY-459517.pdf
About Galaxy Resources Limited
Galaxy Resources Limited (ASX:GXY) (OTCMKTS:GALXF) is an international S&P / ASX 200 Index company with lithium production facilities, hard rock mines and brine assets in Australia, Canada and Argentina. It wholly owns and operates the Mt Cattlin mine in Ravensthorpe Western Australia, which is currently producing spodumene and tantalum concentrate, and the James Bay lithium pegmatite project in Quebec, Canada.
Galaxy is advancing plans to develop the Sal de Vida lithium and potash brine project in Argentina situated in the lithium triangle (where Chile, Argentina and Bolivia meet), which is currently the source of 60% of global lithium production. Sal de Vida has excellent potential as a low cost brine-based lithium carbonate production facility.
Lithium compounds are used in the manufacture of ceramics, glass, and consumer electronics and are an essential cathode material for long life lithium-ion batteries used in hybrid and electric vehicles, as well as mass energy storage systems. Galaxy is bullish about the global lithium demand outlook and is aiming to become a major producer of lithium products.
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