Core Lithium (ASX: CXO) has entered into a binding Tenement Sale and Purchase Agreement to acquire the Shoobridge Project, located 80km from its 100%-owned Finniss Lithium Project in the Northern Territory.
The deal with Newmont Exploration will see Core become the first company to explore and drill the ‘prospective, potentially lithium-rich’ tin and tantalum pegmatites with the potential to extend and expand their lithium production.
Addressing the transaction, Core Lithium Managing Director Stephen Biggins said: “While we are firmly focused on developing the Finniss Lithium Project, we are excited by projects such as Shoobridge that provide synergies and complementary lithium growth opportunities.
“we are excited by projects such as Shoobridge that provide synergies and complementary lithium growth opportunities”
The expected increases in resources from this deal and our well-funded resource drill programs at Finniss this year should provide a strong platform for extending and expanding Lithium production from the project as lithium prices continue to rise.”
The company notes that this newly-acquired ground has the potential to host a variety of target styles following historical mining operations, with little prior exploration focused on lithium.
Despite this, pegmatites within the deposit are considered analogous to those in the Bynoe district, providing further support that Shoobridge is consistent with the company’s objective of continuing to increase lithium resources.
Location of the new Shoobridge tenement in relation to CXO’s Finniss Lithium Project. Image: Core Lithium LtdTerms of the acquisition include Core paying $250,000 plus a royalty of 2% net smelter return on all gold, lithium and uranium extracted from the tenement.
The Shoobridge Tenement is located approximately 80km south-southeast of the company’s flagship Finniss Lithium Project within the Northern Territory’s Pine Creek Orogen.
On completion of the purchase of the Shoobridge project, Core has announced that it will plan drilling campaigns on key pegmatites and targeting below depth of oxidation.
Completion of transaction is determined by and subject to Northern Territory Ministerial consent.
