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GLOBAL LITHIUM RESOURCES LIMITED (GL1) - Shaping the Future of Lithium: Executive Chairman Ron Mitchell on Strategic Board Transformations and Expanding Lithium Projects

July 24, 2024 • Andrew Musgrave

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Join us as we uncover the dynamic transformations at Global Lithium Resources Limited with Ron Mitchell, their newly appointed Executive Chairman. Ron delves into Global Lithium's meteoric rise since their ASX debut in May 2021, growing from a single asset to an impressive 70 million tonnes of JORC-compliant lithium resources. He shares exclusive updates on their Marble Bar and Manna Lithium projects, detailing the critical steps they are taking towards a definitive feasibility study and a native title mining agreement.

Ron also highlights the significance of recent board changes at Global Lithium Resources. Learn how these strategic moves are set to streamline decision-making and harness Ron's extensive global network for future partnerships and alliances. From the strategic advantages of the Marble Bar project to the broader lithium market's outlook, this episode is packed with valuable insights for anyone interested in the future of lithium exploration and development. Don't miss this chance to gain a deeper understanding of Global Lithium's ambitious plans and the pivotal role they aim to play in the industry.

Andrew Musgrave:

Welcome again to ASX Briefs, and today we're joined by Ron Mitchell, the Executive Chairman of Global Lithium Resources Limited, which is a leading lithium exploration and development company in Australia, with significant projects like the Marble Bar Lithium Project in the Pilbara and the Manna Lithium Project in the Goldfields region of Western Australia. Today we'll discuss the company's recent achievements, strategic direction and outlook. Ron, thanks for joining us today and welcome to the podcast.

Ron Mitchell:

Yeah, good morning, great to be here.

Andrew Musgrave:

Okay, Ron, do you just want to give us a brief overview of who Global Lithium Resources are and some of your key projects?

Ron Mitchell:

Sure Look. We were listed on the ASX back in May of 2021. We came to market with a single asset, our Marble Bar Lithium Project, which we delivered a maiden JORC-compliant lithium resource of around 10 million tonnes at 1%. We now own two projects and we have a JORC-compliant lithium resource of close to 70 million tonnes. So the Marble Bar Lifting Project currently grades at 18 million tonnes at 1% and our Manna Lithium Project, which is our flagship project under formal development at the moment, is an asset now grading at more than 50 million tonnes at 1%. So we're thrilled with the progress across both projects in a very short period and we're currently de-risking and ultimately pushing towards the finish line of a definitive feasibility study for our Manna Lithium project and are very close also to concluding a native title mining agreement which will pave the way for a mining lease to be granted a bit later this year. So we're in a great position going forward as the market the lithium market looks to rebound going to 2025.

Andrew Musgrave:

All right, and the company has announced some significant board changes only recently. So how do you envision these changes influencing the company's strategic direction and operations?

Ron Mitchell:

Yeah, look, good time. We, you know previously, I think, a five, five person board. We felt, you know, probably straight, being able to streamline the board process more broadly by having a smaller board is probably the the appropriate way to go. So we saw a good opportunity to do that. Um, and with myself stepping into the exec chair role, I'm incredibly well networked globally and happy to comment. Also, the other role I have is the chair of the London Metal Exchange Lithium and Cobalt Committee. Been in that role for about five years, so good global networks.

Ron Mitchell:

We've got some really important decisions to make going forward as we progress the DFS and we've been approached by a whole range of different partners strategic partners, potential off-take partners and, of course, industry stakeholders. So a more streamlined board, I think, will deliver a better outcome for the company and, of course, our shareholders. And we also have Dianm in Chen, who was previously a non-exec director mining engineer by background, coming into the business in a part-time role as executive director. So these are great changes and I think, as I said, we'll benefit the company going forward as we close in on the DFS and conclude ultimately that very critical work stream and announce it to market in the not too distant future.

Andrew Musgrave:

Okay, and if we just dive into the projects to a little bit more detail, first of all Marble Bar. So what's the strategic importance of that and what bearing does that have on the company moving forward?

Ron Mitchell:

Yeah, sure, look, Marble Bar, that approach is a very large land holding. The first thing I will say, and I did mention, we're a young company, only listed in 21. So there's more work to be done really on that asset. We're sitting at 18 million tonnes, at 1%. My internal view is we need a resource of at least 30 million tons before you move into a formal development cycle by way of embarking on technical studies and and definitive feasibility studies and these type of work streams. Um, so we've got more exploration to do. Importantly, from a strategic viewpoint, we're in good company in that part of the world, the Pilbara, we're only 160 kilometres from the port of Port Hedland. Our resource, our asset, is based adjacent to the town of Marble Bar, so it's a nice warm bed for our drillers and development crews, and the resource itself is only about 15 kilometres north of Marble Bar, adjacent to a sealed road. So we've got great infrastructure at our disposal. Of course, there's two very large and globally significant operating lithium assets just out to the west of us, of course, the Pilgangoora lithium mine operated by Pilbara Minerals, and then, of course, to the west of that asset is the Wodgina deposit operated by Mineral Resources Minerals. So good company.

Ron Mitchell:

As I said, we've received a phenomenal number of inbound inquiries from potential partners, off-take partners, in terms of developing that asset. But our Manna project is where our efforts are at the moment in terms of our project development team, in terms of delivering that particular asset to market. But what we will do, as soon as Manna's, you know, we execute the DFS and hopefully position that project for a final investment decision in the June quarter next year. We'll look to then turn our attention to Marble Bar in a very meaningful way, so land banking that particular project. At the moment we think the value of the asset will only increase over time. We own the asset wholly, so we're in no rush, we're under no pressure from potential joint venture partners and the like to develop the asset. We'll just take our time and ensure we get maximum value from that asset and, of course, the Manna of project as we move forward.

Andrew Musgrave:

All right, and can you discuss how the partnership with Mineral Resources and the offtake agreement with Canmax has influenced the growth trajectory of the company?

Ron Mitchell:

Yeah, sure, look, we have a great relationship with both of our strategic shareholders. As you know, Mineral Resources owns 10% of the company and they progressively built that position over a period of time and really prior to the lithium market going gangbusters back in late 22 and into 2023. But obviously their technical expertise is second to none, one of the largest looking producers on the planet. They've got an incredible skill set around operating assets, developing assets. They're well integrated in what we call the Kalgoorlie Lithium Province. They own the largest single asset in that province, the Mount Marion lithium mine, which has been operating for more than a decade now. So we think having them at the table as a strategic shareholder is a great option for us going forward. We own the second largest lithium resource in the Kalgoorlie lithium province, our Manna lithium project, which is currently sitting just over 50 million tonnes just shy of 52 million tonnes at 1%, and it's a near-surface spodumene-dominant ore body. So we feel that certainly there's some synergies with some of the other assets controlled by Mineral Resources in that area and certainly they're one partner that we'll look to lean on and engage with going forward. And then, of course, Canmax. You know Canmax is one of the largest lithium hydroxide producers in China. They currently own and operate about 130,000 metric ton lithium hydroxide conversion plant capacity in and around Chengdu, which is in Sichuan province, have been operating these assets and I visited these assets last year in October and they're really world-class incredibly advanced technology and world-class facilities. So a great partner on the upstream side which will support us as we look to move and develop our projects. Clearly, having a strategic partner on the downstream is important because it will be a capital component to our project and the intention is that you know the likes of our strategics will look to support us going forward as we move through the funding phase, which is scheduled for the first half next year.

Ron Mitchell:

So we do have an offtake with Canmax. It's the only offtake agreement we have in place. It's for 30% of our total production. What makes our company unique is that you know we still hold the balance of power in terms of having 70% of our offtake uncontracted.

Ron Mitchell:

That's been a deliberate strategy. We've had probably more than, I would say, 20 counterparties come through our boardroom over the last couple of years, all searching for long-term off-tape positions. But we know that's a key commercial lever for us and, as I've said publicly previously, we're not looking to give our lithium away. I think these are unique, finite resources and this market is going to continue to evolve and develop in the coming years. Energy transitions take decades to play out and we feel we're wonderfully positioned given the advancement of our project, our Manna lithium project, the fact that we're dual asset, we're operating in arguably the world's best mining jurisdiction and all the upsides ahead of us. So we've been very deliberate in terms of our strategy, very clear and we'll look to partner, as I said, as part of the funding process in the first half next year.

Andrew Musgrave:

Excellent, all right. Well, just to wrap things up, what are some of the key milestones that investors can look forward to in the next 12 months?

Ron Mitchell:

Yeah, we've got a big, really defining next six months. I mean, we've concluded a number of our very important technical de-risking work streams. The metallurgy is in the very last stages and we've proven for our metallurgical test results to date at Manna that we can produce a very high grade concentrate with low impurities. So, first and foremost, if your metallurgy doesn't stack up, you don't have a project. We're very fortunate that our metallurgical test program today has been incredibly positive. We've locked a flow sheet. We've got our DFS, which will be announced back half of this calendar half I talked about land access and approvals more broadly. We've got a mining lease which we will have in hand by the end of this year.

Ron Mitchell:

Yeah, we're clearly looking at some M&A opportunities. Some of these opportunities, I think, may come to market, if not this year, certainly next year. And then we've got the partnering piece ahead of us as well. So, yeah, fantastic, exciting, half coming up for us as a company. And, as I said, we're one of the few companies on the planet that has a project close to completing a DFS and having a mining lease in hand. And so, as that market does turn next year, we'll be wonderfully positioned and, last and foremost, we've got a fantastic team, a very experienced team and a team that you know is long term and they certainly believe in the future of the sector. So, yeah, well positioned.

Andrew Musgrave:

Well, Ron, thanks for your time today. It's been great to get an update on where the company's at, and we look forward to further updates from Global Lithium Resources in the upcoming months.

Ron Mitchell:

Thanks, Andrew, great to be here.

Andrew Musgrave:

That concludes this episode of ASX Briefs. Don't forget to subscribe and we look forward to catching you on our next episode.