Emerging copper and iron ore company CuFe (ASX:CUF) has entered an agreement to acquire tenement E15/1495 within the Southern Yilgarn Lithium Belt in Western Australia.
The company reports it is acquiring the tenement from an unrelated private vendor for $300,000 in cash up front, a $300,000 milestone payment to be made in the event production occurs in the future from the tenure, and a 1% gross sales royalty.
Under this agreement, the vendor will retain the rights to gemstones on the tenement. CuFe says there are no conditions precedent to the transaction and notes completion is expected to occur within 20 business days.
CuFe reports its geologists have completed a reconnaissance visit to date and says the first work stream is planned to begin at the tenement next month. This work involves detailed mapping and rock chip sampling to define the local geology in detail and to identify any prospective pegmatites in outcrop.
Several historical surface workings occur across the tenements, which CuFe says will provide invaluable information for understanding the local geology.
“While it’s early days for this ground, it is clearly located in a prospective geological setting which hosts several other commercial lithium discoveries”
Commenting on the agreement, CuFe Executive Director Mark Hancock says: “We are pleased to acquire a landholding in an established lithium province. While it’s early days for this ground, it is clearly located in a prospective geological setting which hosts several other commercial lithium discoveries.
If we have exploration success, the proximity to existing lithium concentration facilities and the CuFe team’s prior experience in lithium DSO (direct shipping ore) export offer clear pathways to market. Our experienced exploration team is ready to get started and will be on the ground shortly.”
CuFe reports tenement E15/1495 covers 14km-square about 20km south of Mineral Resources’ (ASX:MIN) MT Marion Mine and about 50km south-southeast of Coolgardie in Western Australia.
The company says the local geology comprises mafic and ultramafic intrusives within felsic volcanics and siliciclastics of the Black Flag Group. Regional granites are within 1km of the tenements, which CuFe says provides a prospective setting for pegmatite-hosted lithium-tantalum mineralisation.
Historically, the tenement has been explored for both nickel and gold. Additionally, there has been little or no modern exploration for lithium, rare earth elements (REE), or tantalum on the tenure. However, CuFe reports there are known historical tantalum occurrences and pegmatite swarms immediately adjacent to the tenement.
CuFe is an emerging copper and iron ore company focused on its various projects in Australia. These projects include the JWD and Bryah Basin projects in Western Australia, as well as the Yarram Iron Ore and Tennant Creek projects in the Northern Territory.
Images: CuFe Ltd
