Segue Resources Ltd (ASX:SEG) has exercised its option to acquire Next Advancements Pty Ltd, which owns three exploration licences in the Gascoyne region of Western Australia.
The 220 square kilometres of applications will expand on Segue’s existing footprint in the area referred to as the Gascoyne Lithium Project.
Segue is the largest explorer in the Gascoyne region.
The licence applications contain host rocks known to contain lithium-bearing minerals.
Segue will commence the next stage of exploration in early September, which will include mapping and sampling.
A similar exploration approach was successful in making lithium discoveries in Canada.
Option exercise details
Under the agreement, Segue will issue Next Advancements with 100 million Segue shares in exchange for 100% of the share capital of Next.
Voluntary escrow agreements are in place for 43.4 million of the shares issued for a period of three months.
The Next tenements are a key component of the project, as the tenements cover a large portion of the highly fertile Thirty Three Supersuite, which displays the same range of fractionation from barren to highly fractionated as known lithium deposits.
This demonstrates the fertility of the project to contain lithium-bearing minerals.
Gascoyne Lithium Project
Segue entered the lithium sector by acquiring the Gascoyne Lithium exploration tenements and entering the Mortimer Hills Lithium joint venture with Zeus Resources Ltd (ASX:ZEU).
Since then, Segue has applied for an additional 707 square kilometres of ground taking the total holding to over 1,100 square kilometres across six tenements.
This makes Segue the largest explorer in the Gascoyne region of Western Australia.
Rock chip sampling shows that source rocks within the Gascoyne project compare to world class North Pilbara lithium deposits such as Wodinga.
The tenements are highly prospective for tantalum‐lithium minerals and are adjacent to exploration licence applications held by Lithium Australia NL (ASX:LIT) and Venus Metals Corporation Ltd (ASX:VMC).
Segue continues to grow its exploration ground in the prominent Gascoyne region.
Segue is now leveraged to exploration upside through multiple commodities – lithium, gold, nickel and copper.
The lithium fieldwork program planned for this new ground is highly amenable to this type of exploration due to its predominantly residual soil and sub-cropping rocky natures.
The company continues to rally higher year to date already having quadrupled its share price to $0.004.
Segue is awaiting drill results from a recently completed 57 hole, 3,147 metre aircore drill program at the Plumridge Gold Project located in the Fraser Range. Results are expected by the end of August.
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