en.Wedoany.com Reported - Australian exploration and development company TG Metals (ASX:TG6) submitted a mining lease application on June 1, 2026, for the Burmeister lithium deposit at its Lake Johnston Project in Western Australia, marking a critical step toward the project's early development phase. The company is simultaneously advancing a direct shipping ore (DSO) development pathway, planning to further delineate shallow ore resources through a drilling program comprising 41 holes totaling 4,809 meters, supporting a potential low-capital development scenario.
TG Metals is a dual-commodity exploration and development company focused on lithium and gold resources in Western Australia. Founded in 2020 and listed on the Australian Securities Exchange (ASX:TG6), the company is headquartered in Perth. Its flagship asset, the Lake Johnston Project, is located approximately 117 kilometers west of Norseman, with well-established surrounding infrastructure and proximity to the Port of Esperance. The mining lease application, numbered M63/0697, covers the Burmeister deposit and planned infrastructure for the Lake Johnston Project.
The Burmeister deposit is an exploration target delineated based on a preliminary geological model from wide-spaced drilling, with an estimated resource of 15.6 to 20.1 million tonnes at a lithium oxide grade ranging from 0.97% to 1.19%. The deposit features a shallow weathered cap of approximately 5 meters, suggesting relatively low stripping requirements for early mining. TG Metals is considering a simplified processing route of "mining-crushing-ore sorting" to produce marketable DSO products on-site, replacing the high capital expenditure of constructing a traditional processing plant in the initial phase.
TG Metals Chief Executive Officer David Selfe, a graduate of the Western Australian School of Mines with extensive experience in exploration geology and expertise in ore estimation and grade control, stated that the mining lease application paves the way for potential early DSO operations. Previous metallurgical test work and the shallow nature of the Burmeister pegmatite support the development of a high-grade, low-capital DSO pathway for the Lake Johnston Project. According to the company's plans, the development of Burmeister will proceed in parallel with the Van Uden gold heap leach project.
TG Metals plans to further delineate an initial 5 to 10 million tonnes of shallow ore resources through the upcoming 41 reverse circulation and diamond core holes (totaling 4,809 meters), supporting early pit design, optimizing overburden estimates, and providing core samples for metallurgical testing and DSO product specifications. The company noted that the current market price for DSO products with 1.2% lithium oxide grade, on a China cost, insurance, and freight (CIF) basis, is approximately USD 362 to 430 per tonne, providing a favorable market backdrop for project advancement. This mining lease application clarifies the approval pathway for TG Metals' Lake Johnston Project, laying the foundation for the subsequent development of the Burmeister lithium deposit.
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