Melbourne-based explorer Cohiba Minerals (ASX:CHK) is planning to undertake a field exploration program at 4 lithium and rare earth element (REE) properties in Ontario, Canada, throughout August and September 2023.
The $8.85 million market capitalisation company reports Dahrouge Consulting was engaged to conduct an initial detailed desktop study from its own ‘extensive’ technical library, followed by a field exploration program over the Big Rock, Rogers Creek, Ottertail, and Gathering Lake lithium properties.
The proposed program of work for August and September will include detailed and comprehensive reviews of historical data, geological mapping, systematic geochemical sampling program, and of field data.
Cohiba will also seek recommendations for follow-up work, including aeromagnetics and multispectral analysis, complete ongoing target prioritisation, and complete necessary statutory documents.
In December 2023, Cohiba plans to conduct aeromagnetic and multispectral surveys, along with reverse circulation (RC) drilling over strategic targets.
As stated in its June quarterly report, on 25 May 2023, Cohiba announced it executed a binding agreement to acquire Maple Minerals 2 Pty, which holds the rights to acquire the 4 lithium and REE properties in Ontario, following an extensive due diligence process.
As a condition of the proposed acquisition, Cohiba received firm and irrevocable commitments from professional and sophisticated investors to raise $1.75 million in a placement.
Under the placement, Cohiba issued 350 million shares at $0.005 per share. The company also agreed to issue a free attaching CHKOB option for every new share issued under the placement.
Cohiba issued 300 million shares under the first tranche, while the remaining 50 million shares were subject to shareholder approval at a general meeting held on 11 July 2023.
Cohiba reported the proceeds from the issue will be used to fund the proposed acquisition, along with exploration costs on the newly acquired projects and current projects, as well as for working capital requirements.
PAC Partners acted as lead manager for the placement and received 40 million CHKOB options as partial consideration for the placement. The company closed out the quarter with $1.8 million cash at hand, as of 30 June 2023.
In South Australia, the company entered into a deed of settlement and release with Olympic Domain to acquire the remaining 20% ownership in the Olympic Domain tenements. After the deed was executed, the company issued 40 million fully paid shares to Olympic Domain with a 3-month escrow.
During the quarter, a major technical review of the geology, mineralisation, alteration styles and structures was completed for hole HWDD03, which determined the site has numerous iron oxide copper-gold (IOCG) indicators.
Cohiba says it resampled the hole in Q2 2023 to better cover the mineralised area, with 51 additional samples submitted for analysis, but despite the visual identification of chalcopyrite in the core, these assays did not return any anomalous copper metal values.
At the Horse Well prospect, additional samples were submitted for HWDD08 to test for the presence of mineralisation in the Wallaroo Group sediments with the footwall of the Horse Well Fault. Assays including 1.5m @ 0.32% Cu and 0.18 parts per million (ppm) Au and 2.99ppm Ag from 1,162m to 1,163.5m confirmed the presence of minor copper-gold-silver mineralisation.
The company says additional structural analysis was undertaken during the period and will continue as part of its investigation into the IOCG potential at this location.
At the Pyramid Lake Gypsum Project in Western Australia, a Mining Rehabilitation Fund (MRF) report was submitted during the June quarter, and Cohiba also submitted an exploration licence application for E74/768 comprising 28 blocks to the north and east of Pyramid Lake to increase its footprint in the area and secure additional potential resources.
Cohiba Minerals is a Melbourne-based explorer focused on its portfolio of assets in South Australia, Western Australia, Queensland, and Ontario, Canada.
Write to Harry Mulholland at Mining.com.au
Images: Cohiba Minerals Ltd