Cadence Minerals investee Evergreen reports progress at Bynoe

14th Mar 2024 13:48

(Sharecast News) - Cadence Minerals updated the market on its investee company, ASX-listed Evergreen Lithium, on Thursday, after the latter disclosed significant developments in its phase three geochemical soil sampling programme at Bynoe in Australia's Northern Territory.

The AIM-traded firm said the results indicated the identification of additional large lithium targets, further underscoring the potential for lithium spodumene mineralisation within the Bynoe pegmatite field, situated within Evergreen's 231 square kilometres of tenure.

It said the phase three sampling initiative uncovered highlights, including the discovery of three large new lithium pegmatite prospects within the central area of the tenement.

Assay results from 1,214 samples had been received, revealing similar large-scale lithium trends to those previously identified.

Additionally, assays for around 900 more samples were expected shortly.

The upcoming dry season in 2024 would see planned work programs, incorporating auger, RAB/AC, and reverse circulation drilling to test geochemical and geophysical anomalies.

Cadence said the programmes held the potential for further exploration, with potential follow-up diamond drilling to delve deeper into the identified prospects.

Cadence Minerals holds a significant interest in Evergreen Lithium, having acquired 15.8 million shares in Evergreen in July 2022 through the sale of its stake in Lithium Technologies and Lithium Supplies.

Further shares valued at AUD 3.47m (£1.86m) were slated for Cadence on the achievement of specific performance milestones by Evergreen.

The shares are under a two-year escrow agreement subject to ASX listing rules.

"These soil results add to the potential of EverGreen identifying an economic LCT pegmatite discovery at the company's Bynoe Project," said Evergreen's exploration manager Andrew Harwood.

"Using a variety of proven exploration tools, the team is looking forward to the upcoming dry season to recommence field activities targeting the anomalies outlined by the soils program, the ANT geophysical work, and recent field mapping."

At 0928 GMT, Cadence Minerals shares were down 3.24% at 5.08p.

Reporting by Josh White for Sharecast.com.