Mount marion

The Mount Marion Lithium Project is located in the Eastern Goldfields Region of Western Australia about 40 kilometres south west of the gold mining centre of Kalgoorlie. It is a joint venture partnership involving Reed Resources Limited that holds 70 percent shareholding and Mineral Resources Limited with 30 percent.

Mount Marion Project Aiming at the Growing Global Energy Storage Market
The joint venture partnership is planning to enter the global energy storage market with the production of high purity LiOH (lithium hydroxide). An inorganic compound composed of a white crystalline material that readily absorbs water from the atmosphere, is slightly soluble in ethanol and wholly soluble in water.

Mount Marion Project Consists of six Separate Deposits
Mineral Resources Limited is to fully fund and operate the project from the mining and processing stage through to transporting the end product to the port for exporting to overseas customers. The Mount Marion project has a JORC compliant ore resource estimated to be 14.9 million tonnes that grades as 1.35 percent of lithium oxide. There is a total of six deposits that makes up the Mount Marion orebody, all open along strike and at depth. The ore fresh from the surface is a distinguishable white colour.

Plan to Make the Mount Marion Project an Independent Lithium Producer
The development plan for the Mount Marion project, going forward, will involve a complete definitive feasibility study regarding the downstream plant and for it to become an independently financed producer of lithium.

Mineral Resources now Have Direct Shareholding in the Mount Marion Project
Under the initial farm-in agreement signed between Reed Resources and Mineral Resources in 2009, Reed Resources retained full ownership of the project, with Mineral Resources providing the development funding that included the construction and ownership of the lithium ore processing facilities. In return they were to be offered 40 percent of the profit made from the sale of the lithium produced at the mine. However, this agreement was amended early in 2011, with Mineral Resources now given a direct 30 percent ownership of the project and Reed Resources retaining a 70 percent interest.

Mount Marion Test Programs Encouraging
The proof of technology test work program at the Mount Marion Project is due for completion during 2013 after which a decision will be made on whether to complete the engineering cost study regarding further development. A metallurgical test work program has been successfully carried out at the SGS laboratories in Perth. SGS is the worlds foremost inspection testing and certification company, globally recognised for its integrity and quality. All testing carried out so far has been encouraging with a production level of 99.9 percent of lithium chloride having been obtained from the Mount Marion spodumene ore with a last stage of electrolysis in chlor-alkali cell remaining outstanding, awaiting the result from an International and Australian Patent application.

Third Party Arrangements Still Being Sought for the Mount Marion Project Going Ahead
Reed Resources is currently engaged with Mineral Resources Limited in
carrying out strategic discussions with third party companies as to how best to set up the new company's transaction structures. These discussions are in their early stages and there is no guarantee any binding proposal will eventually emerge but it appears to be the favoured route to follow given the wish to make the company fully independent.
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