Arcadia Minerals (ASX:AM7) reports it has entered into agreements with power and water suppliers in anticipation of the conclusion of a Definitive Feasibility Study (DFS) at its Swanson Tantalum and Lithium Project in Namibia.
The DFS at the Swanson Project is progressing as planned and within budget, and is expected to be finalised at the end of October.
Arcadia’s share price was up 11.11% to $0.30 as of 11am AWST.
The company has entered into an agreement to the use of land over the mining licence area to secure the supply of electricity and water at the project.
The company has entered into an agreement to the use of land over the mining licence area to secure the supply of electricity and water at the project
Arcadia’s subsidiary Orange River Pegmatite (Orange River) concluded a water supply agreement with Namibia Water Corporation (NamWater), a corporation established in terms of section 2(1) of the Namibia Water Corporation Act, 1997.
Through this water supply agreement, NamWater is to supply 210 cubic metres of water per day from its boreholes at Warmbad (approximately 21km north of the Swanson Project) utilising the proposed Swanson Mine Water Supply Scheme.
The Supply Scheme will be constructed by Orange River to provide a water supply to the project.
The company also received confirmation that the South-West Africa Water and Electricity Corporation, now commonly known as NamPower, holds sufficient capacity at its Warmbad substation for the transmission of up to 2.7MVA power, without violations.
Orange River will construct a 21km long, 33kV line to the proposed Swanson Project.
Orange River has also concluded a land use compensation agreement in terms of section 52 (1) of the Namibian Minerals Act with Tantalite Valley Estates.
In terms of the land use agreement, it was agreed that the land-use agreement will last 20 years or until final termination of the mining licence, or until Orange River terminates the land-use agreement.
Orange River is entitled to enter into, access and establish mining operations within the mining licence area and will pay compensation in terms of the Minerals Act and rent to the owner of the property of which the mining licence has been granted to Orange River.
Arcadia is a Namibia-focused diversified metals exploration company, based in Guernsey.
The company explores for a suite of gold, lithium, tantalum, palladium, nickel and copper, and its strategy is to bring the ‘advanced’ Swanson Tantalum Project into production and to use cashflows to drive exploration and development at the project.
The first two pillars of Arcadia’s development strategy are established through a third pillar, which consists of using the company’s human capital of industry specific experience, tied with a history of project generation and bringing projects to results to create value for the company and its shareholders.
Most of Arcadia’s projects are located around established mining operations and ‘significant’ discoveries.
Its mineral exploration projects include:
- Bitterwasser Project, prospective for lithium-in-brine, and an expanding JORC Mineral Resource for lithium-in-clays.
- The Kum-Kum Project which is prospective for nickel, copper and platinum group elements.
- The Karibib Project prospective for copper and gold.
- The Swanson Project, an advanced tantalum project which contains an expanding JORC Mineral Resource within the project area and neighbouring tenements held by Arcadia.
As an exploration company, all the projects of Arcadia are currently receiving focus, and the Swanson Project and the Bitterwasser Lithium Project are considered the company’s primary projects.
