Rio Tinto Exploration (RTX) and Charger Metals are set to break ground on an exploration program for the Lake Johnston lithium project in the Yilgarn region of Western Australia.
Charger will receive $250,000 from RTX this month and $250,000 next quarter in milestone payments that will eventually total a $1.1 million budget set for the exploration activities.
The major will also spend a minimum $3 million over the first 12 months of the project.
The budgeted work program includes approximately 5000m of drilling to test priority targets at Lake Johnston’s Mt Day, Mt Gordon and Pagrus prospects.
The RTX-Charger collaboration has been established through a farm-in agreement that will see Rio spend up to $42.5 million to earn up to a 75 per cent interest in Lake Johnston.
Charger managing director Aidan Platel said the RTX farm-in agreement enables Charger to keep advancing Lake Johnston counter cyclically during the recent softening in lithium prices.
“During the current lithium price downturn, most lithium explorers are struggling to justify counter cyclical exploration expenditure,” Platel said.
“Charger’s farm-in agreement with RTX is testament to the potential of our lithium targets and allows the company to continue lithium exploration at Lake Johnston.
“We look forward to commencing our planned 2025 work programmes and continuing to build our strong relationship with the RTX team.”
Lithium prospects occur within a 50km long corridor along the southern and western margin of the Lake Johnston granite batholith.
Key target areas include the Medcalf and Medcalf West ppodumene prospects, the Mt Gordon lithium prospect and much of the Mount Day LCT pegmatite field, prospective for lithium and tantalum minerals.
Lake Johnston is also located approximately 70km east of the large Earl Grey (Mt Holland) lithium project, which was commissioned by Covalent Lithium, the manager of a joint venture between subsidiaries of Sociedad Química y Minera de Chile S.A. and Wesfarmers.
Mt Holland, which began production in March 2024, is understood to be one of the largest hard-rock lithium projects in Australia.
