Exceptional Lithium Values Discovered at Perpetual Resources Igrejinha Project

Perpetual Resources Fast-Tracks Maiden Drill Program at Strategic Igrejinha Lithium Project

Perpetual Resources (ASX:PEC) has announced the imminent commencement of a high-impact drilling program at its Igrejinha Lithium Project in Brazil's prolific "Lithium Valley." The 1,500-metre reverse circulation program, scheduled to begin 5 June, will target multiple high-priority zones identified through comprehensive exploration work.

The maiden drill program represents a significant milestone for the company, testing strike extensions and depth continuity of known high-grade spodumene-bearing pegmatites for the first time. With all necessary permits secured and infrastructure in place, Perpetual Resources is positioned to accelerate exploration at this strategically positioned project.

Recently Exposed Spodumene Reinforces Target Potential

Recent pre-drilling activities have uncovered additional spodumene and pollucite (caesium) mineralisation during trench construction, providing further evidence of potential strike extensions at the primary "Target 1" area. These newly exposed materials align with the mapped pegmatite corridor targeted in the upcoming drill program.

The company's soil sampling and auger drilling results have refined multiple high-priority targets that will now be tested systematically. Geological interpretations support the continuity of these pegmatitic structures both at depth and along strike.

What is Spodumene and Why Does it Matter?

Spodumene is a lithium-bearing mineral that forms in pegmatite rock formations. It contains higher lithium concentrations (up to 8% Li₂O) than other sources like clay deposits or brines.

For investors, spodumene deposits are significant because:

1. Higher grades typically result in lower processing costs – The higher the lithium content, the more economical extraction typically becomes.

2. Potentially faster path to production – Hard rock lithium projects can often reach production faster than brine operations, which may require years of evaporation.

3. Consistent product quality – Spodumene concentrates typically yield a more consistent chemical composition compared to other lithium sources.

4. Premium pricing – High-grade spodumene concentrate (5.5-6% Li₂O) currently commands premium prices in the global market due to its suitability for battery-grade lithium chemicals.

When companies like Perpetual Resources report visual spodumene in exploration results, it's a preliminary indicator of potential lithium mineralisation, though laboratory assays are required to confirm actual grades. Recent lithium values exploration has shown impressive results with samples assaying up to 7.6% Li2O, further validating the project's potential.

Strategic Location in Brazil's Emerging Lithium Hub

Perpetual Resources Igrejinha Lithium Project sits in the heart of Minas Gerais, a region gaining recognition as "Brazil's Lithium Valley." This emerging lithium province hosts multiple significant discoveries and development projects, including operations by Sigma Lithium advances (NASDAQ:SGML) and Lithium Ionic (TSXV:LTH).

The selection of ServDrill Brazil as drilling contractor adds further credibility to the program. ServDrill has successfully completed recent drilling campaigns for both Sigma Lithium and Lithium Ionic in the region, bringing valuable local experience and operational expertise to Perpetual's program.

Upcoming Catalysts and Exploration Timeline

With drilling set to commence 5 June, Perpetual has outlined a clear timeline for upcoming activities and results:

Investors can expect a steady flow of news throughout this period, with particular focus on any visual identification of lithium-bearing minerals encountered during drilling, followed by laboratory assay results expected in July.

"We've long understood that the artisanal workings at Igrejinha point to significant spodumene and caesium mineralisation, supported by both historical mining activity and remaining outcrops. This has been consistently validated by high-grade assay results, detailed multispectral analysis, and more recently, through soil geochemistry and trenching — all of which continue to reinforce our confidence in the scale and potential of the system," said Exploration Manager Allan Stephens.

Investment Thesis: Exposure to Brazil's Emerging Lithium Sector

Perpetual Resources offers investors exposure to Brazil's rapidly developing lithium sector, with several key advantages:

1. Strategic positioning in Brazil's "Lithium Valley," a region gaining global recognition for significant lithium discoveries

2. Multiple prospective targets across approximately 12,000 hectares of highly prospective lithium exploration permits

3. Visible spodumene mineralisation already identified at surface, with high-grade assay results from initial sampling

4. Imminent drilling program providing near-term catalysts and news flow

5. Experienced exploration team with regional expertise and track record

The company's focus on high-grade spodumene pegmatites in an established lithium province provides substantial upside potential as the global transition to electric vehicles and renewable energy storage continues to drive lithium demand. Furthermore, lithium discoveries in Côte d'Ivoire demonstrate the growing global footprint of lithium exploration, highlighting the strategic importance of Perpetual's Brazilian assets.

Understanding Pegmatites and Their Significance

Pegmatites are coarse-grained igneous rocks that form during the final stages of magma crystallisation. What makes them particularly valuable is their tendency to concentrate rare elements that don't easily fit into the crystal structures of common rock-forming minerals.

In the context of lithium exploration, lithium-caesium-tantalum (LCT) pegmatites are the primary target. These specialised pegmatites can host economic concentrations of lithium (in minerals like spodumene), caesium (in pollucite), and tantalum (in columbite-tantalite).

The Perpetual Resources Igrejinha Lithium Project targets these LCT pegmatites, which are particularly well-developed in the Minas Gerais region of Brazil. These geological formations typically appear as dyke-like bodies that can vary significantly in size, from small veins to massive structures hundreds of metres in length and tens of metres in thickness.

For investors, understanding the basic characteristics of these pegmatite systems helps contextualise exploration results:

• Zoning patterns – Pegmatites often display mineralogical zoning, with different minerals concentrated in different parts of the pegmatite body

• Outcropping potential – Many pegmatites are resistant to weathering and may outcrop at surface, making initial discovery possible through field mapping

• Strike and dip continuity – While pegmatites can be irregular, many follow predictable trends in their orientation, allowing for targeted exploration

The upcoming drilling at the Perpetual Resources Igrejinha Lithium Project will test both the lateral extent (along strike) and depth continuity of these pegmatite structures identified at surface.

Why Investors Should Follow Perpetual Resources

As global lithium demand continues to grow, companies with strategic assets in emerging lithium provinces offer significant potential for value creation. Perpetual Resources stands out for several compelling reasons:

Strategic asset portfolio – Beyond the flagship Igrejinha Lithium Project, Perpetual holds approximately 12,000 hectares of prospective lithium exploration ground in Brazil's premier lithium province, providing multiple exploration opportunities.

Imminent catalysts – The upcoming drilling program provides near-term news flow and potential value-creation milestones over the coming weeks and months.

Established mineralisation – Unlike purely conceptual exploration plays, Perpetual has already identified visible spodumene mineralisation at surface, providing greater confidence in the project's potential.

Experienced management – The company's technical team brings relevant expertise to advance these assets efficiently.

With drilling about to commence and results expected in the coming weeks, Perpetual Resources Igrejinha Lithium Project offers investors exposure to potentially significant lithium discoveries in one of the world's most promising emerging lithium provinces. In a similar vein, companies like Venus Metals securing copper project co-funding and those reporting high-grade gold mineralisation demonstrate the growing opportunities in the resource sector.

Brazil's Position in the Global Lithium Landscape

Brazil is rapidly emerging as a significant player in the global lithium market, with the Minas Gerais region becoming increasingly recognised for its high-grade lithium deposits. This region, sometimes referred to as "Lithium Valley," hosts numerous pegmatite fields with demonstrated potential for commercial lithium production.

The country benefits from several key advantages in lithium development:

• Established mining infrastructure and expertise – Brazil has a long history of mining operations, providing skilled labour and established supply chains

• Favourable mineralogy – The predominance of spodumene-bearing pegmatites allows for conventional processing methods

• Proximity to emerging battery manufacturing – As South America develops battery manufacturing capacity, locally sourced lithium could have logistical advantages

• Supportive regulatory environment – Brazil's government has identified lithium as a strategic mineral for the country's economic development

For companies like Perpetual Resources, operating in this emerging lithium hub provides both technical and strategic advantages. The presence of other successful lithium developers in the region, including Sigma Lithium and Lithium Ionic, demonstrates the potential for new discoveries to advance rapidly toward development.

The Perpetual Resources Igrejinha Lithium Project represents an opportunity to participate in this emerging lithium province at an early stage, with drilling about to test the economic potential of already identified mineralisation.

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