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Neometals shares down on low prospectivity at Spargos following tests

13th Feb 2024 09:19

(Alliance News) - Neometals Ltd on Tuesday said that saw its shares fall, after announcing that a review of its Spargos project indicated a low potential for lithium-bearing pegmatites.

Spargos, which Neometals has full ownership of, is 50 kilometres southwest of Coolgardie in Western Australia.

According to the London-based battery materials producer, the re-sampling and assaying of historical nickel exploration diamond drill core, as well as the assaying of recently collected rock chip and soil samples, has returned no significant lithium assay results.

Following this review, Neometals has decided that the eastern side of the greenstone belt at the project has a low chance for lithium-caesium-tantalum pegmatite prospectivity.

"We are naturally disappointed the pegmatites in historic drilling didn't contain lithium despite having the geological features to host lithium mineralisation. Given the current market conditions for both nickel and lithium, further exploration activities have been placed on hold pending a strategic review of the project. Our core focus remains our Primobius lithium battery recycling JV and the installation of a turn-key recycling plant for a leading German carmaker," said Managing Director Chris Reed.

Neometals shares were trading 6.3% lower at 7.50 pence each in London on Tuesday morning.

By Holly Beveridge, Alliance News reporter

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