The Donelly Lithium Project is located in the world class Greenbushes Mineral Field in south-west Western Australia. It extends from 12 km to 60 km southwest of the world class Greenbushes Lithium Mine, and comprises two exploration licence applications (E70/4826 and E70/4829) covering a total area of 220 km².

The Donnelly Project is considered prospective for lithium contained in spodumene-bearing pegmatites of the Lithium-Caesium-Tantalum (LCT) geochemical family. This type of pegmatite hosts the Greenbushes mine, and is similar to that intersected in drilling at Pioneer’s recently acquired Mavis Lithium Joint Venture Project in Canada (ASX announcement, 15 March 2016), and targeted at the Company’s 100% owned Phillips River Lithium Project in the Great Southern region of WA (ASX announcement, 6 April 2016).

Lithium and other elements associated with LCT pegmatites are evident as anomalies in sampling undertaken by the Geological Survey of Western Australia (Morris P.A. 2008). To date no follow up exploration has been completed.

Most of the Project is covered with laterite - which is known to degrade and mask pegmatites, however laterite is an excellent geochemistry sampling medium and has been proven very effective by CSIRO to locate LCT-style mineralisation in the Greenbushes district (Smith et al, 1987).

April 2016