Mt Usher’s Untapped Gold Potential: Can Lithium Energy Deliver on Historic Promise?

Re-Assay Validates Historical Gold Potential

Lithium Energy Limited (ASX, LEL) has announced compelling results from the re-assay of 125 historical rock chip samples collected in 2017 at the Mt Usher prospect, part of its Capricorn Gold-Copper Belt Project in Queensland. The re-assays confirm significant high-grade gold mineralisation, with standout samples reaching up to 24.1 grams per tonne (g/t) gold, alongside notable silver and base metal content. This validation of historical data breathes new life into a region with a rich mining heritage but limited modern exploration.

Geological Significance and Mineralisation Style

The mineralisation at Mt Usher is interpreted as a base metal-gold-telluride system formed at sub-epithermal depths, associated with a quartz-feldspar porphyry intrusion. Elevated levels of molybdenum, gallium, and tellurium detected in the samples support this interpretation, suggesting a complex and potentially large-scale mineral system. The gold occurs within quartz vein lodes along a 3.8-kilometre strike, historically mined intermittently since the late 19th century, producing approximately 100,000 ounces of gold from both hard rock and alluvial sources.

Strategic Location Near Historic Mt Morgan Mine

Mt Usher lies within the Capricorn Gold-Copper Belt, surrounding the historically prolific Mt Morgan gold-copper mine, which produced over 7.6 million ounces of gold and significant copper between 1883 and 1981. While Mt Morgan itself is excluded from the project, Lithium Energy aims to explore for similar mineralisation styles along strike within its tenements. The Capricorn Project hosts multiple targets for gold, copper, molybdenum, and zinc, with Mt Usher representing a high-grade gold vein prospect among other porphyry and volcanic massive sulphide targets.

Next Steps, Modern Exploration Program Underway

Following the recent granting of the Mt Usher Mineral Development Lease (MDL 2020), Lithium Energy is poised to commence an extensive on-ground exploration program. Planned activities include a comprehensive geochemical review, drone magnetic surveys, detailed field mapping, airborne electromagnetic surveys, and ground induced polarisation surveys. These efforts will culminate in reverse circulation (RC) drilling designed to define the extent, thickness, and grade continuity of the gold mineralisation, as well as scout for potential blind deposits along the historic vein corridor.

Unlocking Underexplored Potential

The Mt Usher goldfield has seen limited modern exploration despite its historic production and geological promise. Lithium Energy’s application of contemporary geophysical techniques and 3D data analytics to consolidate historical and new data positions the company to unlock value in this underexplored region. Executive Chairman William Johnson emphasised the significance of the re-assay results and the company’s commitment to accelerating exploration to evaluate the gold potential of Mt Usher and the broader Capricorn Belt.