Strategic development drilling to the east of the tenement boundary with Altura Mining returned 8m at 1.75% lithium oxide from 56m; 8m at 1.57% from 82m; 23m at 1.35% from 119m; and 10m at 1.71% from 161m.

The drilling indicates the potential for the expansion of the proposed South pit, in conjunction with Altura’s mining operations.

Pilbara and Altura signed a memorandum of understanding in August, which contemplated the joint exploitation of the pegmatite system that crosses tenement boundaries.

Meanwhile, drilling at the Far East prospect returned 13m at 1.61% lithium oxide from 96m; and 5m at 1.87% from 104m; while the Houston Creek pegmatite returned 12m at 1.55% lithium oxide from 13m.

Resource extension drilling at Monster returned 12m at 1.73% lithium oxide from 48m; 15m at 1.76% from 81m; and 16m at 1.41% from 53m, down-dip of the currently defined resource.

Pilbara has completed more than 80,000m of drilling at Pilgangoora in the past two years, growing the resource to 128.6 million tonnes at 1.22% lithium oxide for 1.57Mt of contained lithium.

The company has flagged another “material” upgrade before Christmas.

Pilbara managing director and CEO Ken Brinsden said the 2016 exploration campaign had been fruitful for the company.

“When you stand back and look at what has been achieved this year in terms of drilled metres and the astonishing return on that investment in terms of resource and reserve growth, it has been a standout performance by our exploration team,” he said.
 
“The major focus of this final chapter of the exploration program has been to sterilise locations for key infrastructure and strategically target resource extensions which could impact materially on pit designs and infrastructure placement.”

The company has continued to find pegmatites during sterilisation drilling, ahead of the expected start of construction at Pilgangoora early next year.

Pilbara shares were unchanged at A53.5c.