Sigma Lithium (TSXV: SMGL) is reporting that it could “potentially” expand its mineral resource estimate following phase four work exploration that was conducted at its Grota do Cirilo property in Brazil.
The details come from a late night news release issued by the company on Wednesday, with Sigma suggesting that the results of recent exploration “could” represent the increase of its total mineral resource estimate at the project to 110 million tonnes.
The figure is based on the Phase 4 exploratory work potentially adding 26 to 30 million tonnes to the current resource, which sits at 77.0 million tonnes of measured and indicated resources grading 1.43% Li2O.
The phase 4 program saw exploratory work focused on the Murial South and Lavra do Meio deposits, which have the potential to be mined via open pit methods. The program covered 2.3 kilometres of strike, with the deposits remaining open to the east and west, with drilling also suggesting potential exists to connect the phase three and phase four regions via pegmatites.
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The two deposits saw a maiden resource issued in 2019, with Muria South having 5.6 million tonnes of 1.14% Li2O on a measured and indicated basis, and Lavra do Meio having 2.3 million tonnes of 1.09% Li2O measured and indicated resources.
Additional increases to the resource estimate for the entire project is also said to be a possibility, with a potential phase 5 program estimated to be capable of adding up to 20 million tonnes of further resources to the project. The figure is said to be based on five remaining former artisanal mines that have yet to have volumes and grades defined, along with 57 known pegmatites within Sigma’s concessions that have yet to be tested.
The “potential” expansion of the resource estimate however is of course highly speculative, given that the company has not gone through the effort of actually calculating a new resource based on the exploration results.
Sigma Lithium last traded at $35.46 on the TSX Venture.
Information for this briefing was found via Sedar and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
