Golden State believes that electric vehicle manufacturers should finance the first line of lithium exploration

GSM MD Mike Moore says the relationship between EV makers and lithium explorers should be closer.  Image: Ozgur Donmaz/DigitalVision via Getty Images.
GSM MD Mike Moore says the relationship between EV makers and lithium explorers should be closer. Image: Ozgur Donmaz/DigitalVision via Getty Images.

The world’s automakers could soon fund mineral exploration efforts as they scramble for a reliable supply of materials for electric vehicle batteries, according to Mike Moore of Golden State Mining.

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Golden State Mining (ASX:GSM) Managing director Mike Moore leads a company with potential lithium land in Western Australia in the Pilbara at the flagship multi-product Yule project and in the Murchison region at the recently acquired Payne’s Find project.

Moore has watched with interest as automakers have competed for lithium supplies in the face of global shortages of battery materials, recently telling Stockhead that he believed it was only a matter of time before automakers got involved. in early-stage lithium exploration to shore up its own supply chains.

“I think the way things are developing will ultimately require closer relationships between mineral explorers and end-users of materials, such as automakers,” he said.

“I think they will have to engage at an earlier stage with companies that they think have prospective land, and maybe even help these exploration companies do a little bit of the heavy lifting.

“The opportunity for exploration companies is to identify areas that have good lithium credentials. Historically, we have seen explorers develop the fundraising model to pay for their exploration activities, with mining partners coming in and providing funding in exchange for mining once there is a bona fide resource.

“However, what we are seeing now is end-users getting involved earlier where companies have discovered lithium.

“I think that trend will continue as these companies look to shore up reliable supply for themselves – companies will get involved sooner than they might have previously considered.”

It’s an interesting thought, particularly when viewed in the context of Elon Musk’s recent calls for more people to get into the lithium business.

The lithium bond

When it comes to lithium credentials, Golden State’s potential is well known. The company’s flagship underexplored lithium, gold and base metals project, Yule, was pegged by WA exploration legend Graeme Hutton in the mid-2000s for its prospects for tantalum, a mineral that usually occurs geologically in LCT pegmatites together with lithium.

(No prizes for guessing what L and T stand for in LCT.)

Golden State picked up the project prior to the 2018 IPO and hired leading lithium hard rock geology expert and academic Dr. Marcus Sweetapple as a consultant to guide its exploration strategy.

“What he also brought up during that time was that if we were able to expand our footprint, there were certain areas that he identified as more prospective,” Moore said.

“Since then, we have increased our footprint from what was initially 360 km2 to more than 700 km2 in the region.

“We have been very active, not only on the exploration drilling front, but also in terms of acquiring a greater presence in what we see as strategic positioning in a region that is certainly on the radar of lithium explorers and producers.” .

Yule’s Target 2A is rich in LCT pegmatite pioneers, and the company plans to get a reverse circulation drill rig on site in the coming months to follow up on its early-stage air-core drilling.

“We plan to do a minimum of 1,500m of RC drilling in four areas at Target 2A,” Moore said.

“The program has already been approved and we can’t wait to get out there and do that job. It’s just a case of securing a platform at this stage.

Lithium is not the only mineral on Yule’s agenda, just 13 km from Mining De Gray (ASX:SDR) Hemi gold discovery.

The company also has several gold targets in place, while nickel was previously found at the project’s Balla Yule prospect, an under-explored area that Moore believes has potential in the minerals province.

Gaining ground

In a bid to add to its established Pilbara flagship, GSM recently hired a team of expert consultants, including former CSIRO and University of Western Australia Research Associate Dr Marcus Sweetapple, to work with its geology team. and identify new mineral opportunities within WASHINGTON.

As part of this process, the company submitted applications for five homes covering 1,200 km2 near Payne’s Find in Murchison, Washington.

Two of the five homes in the aptly named Payne’s Find project have already been awarded, with early planning underway before first-pass exploration work.

The project is close to known lithium pegmatite fields at Goodingnow and Mt Edon and is in a favorable geological setting for mineralization.

It is also 30 km from Tempest Minerals’ (ASX: TEM) recent copper discovery in Meleya, which highlights the mineral potential of the region.

Moore said that recent work with Dr. Sweetapple was to identify projects that others may have “missed.”

“We have built a good working relationship with Dr. Sweetapple, which is why we hired him to work with our geophysical consultant to identify any lithium areas that may have been neglected, because many of the lithium opportunities have already been pinned down. ,” he said.

The company is currently reviewing open file exploration data to help generate some targets, with potential for geophysical surveys if gaps in what is available are discovered.

Moore said he hoped to have rigs on the ground by the end of this year or early next year.

Combining these projects with the gold potential at Yule and the company’s Four Mile Well project; where soil sampling was recently conducted, along with a host of other multi-product tenure applications filed around WA, exposes GSM to a compelling mix of mineral prospectivity in old and new industries.

“Compared to something like gold, which we’re also very familiar with, lithium is such a nascent industry,” Moore said.

“I personally believe that WA will become one of the world’s leading lithium hubs in terms of exploration, extraction, value addition and processing.

“There’s a huge lithium opportunity here, and through our work at Yule and the Payne’s Find tie-in, we’re looking to capitalize on it.”

This article was developed in collaboration with Golden State Mining, a Stockhead advertiser at the time of publication.

This article does not constitute advice on financial products. You should consider obtaining independent advice before making any financial decisions.

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