Firetail Resources (ASX:FTL) has completed a farm-in agreement with a subsidiary of mining technology company SensOre (ASX:S3N) that will accelerate exploration at the Firetail Yalgoo Lithium Project in Western Australia.
The deal was executed through SenOre’s joint venture (JV) subsidiary Exploration Ventures AI (EXAI) in partnership with German resource investment group Deutsche Rohstoff on tenement E59/E2252.
Exploration Ventures can earn up to 80% of the lithium rights on the tenement by spending $3.5 million in 2 stages. Additional contingent payments will be made to Firetail including $200,000 on the completion of a maiden Mineral Resource Estimate (MRE) and $400,000 on the completion of a Prefeasibility Study (PFS).
Under the terms of the agreement, SensOre is expected to provide Firetail access to its proprietary artificial intelligence (AI) technology, which has flagged the presence of lithium-caesium-tantalum (LCT) mineralisation across the Yalgoo and Dalgaranga Lithium projects.
Firetail Resources Executive Chairman Brett Grosvenor says the farm-in with SensOre provides an opportunity to progress exploration while unlocking the potential of other tenements in the area.
“The approach and subsequent deal with SensOre, validates our understanding of the region and the potential for a lithium discovery in this region.”
“The approach and subsequent deal with SensOre, validates our understanding of the region and the potential for a lithium discovery in this region”
SensOre Chief Executive Officer (CEO) Richard Taylor says the company’s proprietary AI technology will be valuable in exploring the wider Yalgoo and Dalgaranga Project area.
The Yalgoo and Dalgaranga Lithium Project comprises 14 granted concessions covering over 1750km-square near Geraldton Port.
Firetail will move forward with reverse circulation (RC) drilling at Yalgoo-Dalgaranga to follow up on results from an initial program at the Johnson Well prospect and test the down-dip extent of the pegmatites.
Meanwhile, drilling is now underway at the company’s Picha Project in Peru, with the program expected to be complete in the next 2-3 months.
Firetail Resources is a battery minerals company with an ‘exciting’ project portfolio with exposure to its Western Australian and Queensland projects.
SensOre is focused on deploying its AI and machine learning (ML) technologies.
Firetail Resources had $7.80 million cash and cash equivalents at hand as of 30 September 2023, according to its latest quarterly report.
Write to Adam Drought at Mining.com.au
Images: Firetail Resources and SensOre
