PERTH (miningweekly.com) – ASX-listed Mineral Resources has increased the resource estimate at its Mt Marion lithium project, in Western Australia, by 66%.

The project is now estimated to host an indicated and inferred resource of 23.24-million tonnes, at 1.39% lithium oxide and 1.43% iron oxide. This was up from the previous estimate of 14.8-million tonnes.

A total of 10.05-million tonnes has been classified as indicated, with a further 13.19-million tonnes classified as inferred.

Mineral Resources pointed out this week that 359 holes had been drilled to date, totalling some 19 546 m in length. The majority of the drilling had been reverse circulation, while diamond core drilling made up the balance.

Meanwhile, seven exploration targets have also been discovered which could potentially expand the Mt Marion resource.

A new mining study based on the expanded resource was expected to increase the mining inventory at Mt Marion and lift potential processing rates, as project partner Neometals moves into the construction phase in the coming weeks, Neometals MD Chris Reed said.

Meanwhile, the shareholders of China’s second-largest lithium producer Jiangxi Ganfeng Lithium have approved a transaction with Mt Marion owners Neometals and Mineral Resources.

The three parties in July entered into a memorandum of understanding under which Jiangxi Ganfeng would acquire an upfront 25% interest in joint venture vehicle Reed Industrial by way of a share sale and equity subscription, leaving Neometals with a 45% interest in Reed Industrial and Mineral Resources with a 30% shareholding.

Further, Mineral Resources subsidiary Process Minerals International and Jiangxi would both be granted options by Neometals to increase their respective shareholding in Reed Industrial to 43.1% each by the fourth quarter of 2016 by way of a share purchase.

If these options were fully exercised, Neometals would be left with a 13.8% shareholding in Reed Industrial.