TG Metals is eyeing a potential direct shipping ore development at Burmeister after lodging a mining lease application. Pic: Getty Images
- TG Metals has applied for a mining lease covering the Burmeister lithium deposit at Lake Johnston
- Previous testwork suggests a DSO product grading about 1.5% Li2O could be produced through simple onsite crushing and ore sorting
- The company has planned 41 drill holes for 4,809m at Burmeister to prioritise shallow material for a potential DSO operation
Special Report: TG Metals has taken the next step at its 100%-owned Burmeister lithium deposit in WA, lodging a mining lease application as it advances a potential direct shipping ore development pathway.
Mining lease application M63/0697 covers the Burmeister deposit and planned infrastructure at Lake Johnston, providing TG Metals with a clearer approvals pathway for potential development at Lake Johnston.
Conceptual modelling based on wide-spaced drilling has outlined an exploration target of 15.6Mt to 20.1Mt at 0.97% to 1.19% Li2O, positioning Burmeister as a shallow, low-strip DSO opportunity close to infrastructure and the Port of Esperance.
TG Metals (ASX:TG6) CEO David Selfe said the mining application sets TG Metals on course for the potential early establishment of a DSO operation.
“The lithium market has rapidly recovered, and TG Metals can take advantage of these vastly improved conditions via the Company’s wholly owned Burmeister lithium deposit,” he said.
“Metallurgical testwork and the shallow nature of the Burmeister pegmatites support the potential for a high-grade and low-capital DSO development pathway at Lake Johnston.
Selfe said Burmeister’s development would run in parallel with TG Metals’ primary focus of bringing the Van Uden gold heap leach development into first production.
Ore sorting edge
TG Metals says previous metallurgical test work points to a lower-capex processing route at Burmeister, with simple ore sorting of plus-10mm material lifting three composite samples to average concentrate grades of 1.52% Li2O, 1.51% Li2O and 1.47% Li2O on a first pass.
The coarse concentrate stream returned Li2O recoveries of 71.2%, 70.0% and 72.2%, while the combined concentrate-plus-fines streams graded 1.42% Li2O, 1.47% Li2O and 1.32% Li2O, with total lithium recoveries above 94% across all three composites.
This provides TG Metals with a practical early development option.
TG Metals is considering a mine-crush-ore-sort approach to produce a saleable DSO product onsite, instead of constructing a conventional concentrator at the outset.
Burmeister’s oxidised cover is shallow, around 5m, indicating that pre-strip requirements may be modest for early mining.
Drilling to support DSO plans
With growing interest from producers and offtake enquiries from Asia, TG Metals plans further drilling at Burmeister to define the first 5Mt to 10Mt of shallow material for a potential early DSO operation.
The 41-hole RC and diamond drilling program, totalling 4,809m, will support early pit design, refine overburden estimates, and provide additional core for metallurgical testwork and DSO product specification.
TG Metals pointed to current DSO pricing of US$362/t to US$430/t CIF China for a 1.2% Li2O product as part of the market backdrop for its renewed development push.
With the mining lease application lodged, drilling planned and ore-sorting results supporting a simpler processing route, TG Metals is moving Burmeister toward early-stage development at Lake Johnston.
This article was developed in collaboration with TG Metals, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
