Its sights newly set on the polymetallic potential of black shale, Octava Minerals (ASX:OCT) has signed a deal to acquire the Byro REE and Lithium Project in Western Australia’s Gascoyne region from Byro Mining.
Located 220km south-east of carnarvon and 650km north of Perth, the Byro Project — which already has Native Title agreements in place — consists of two exploration licences spanning 798km-square. Local infrastructure includes a commercial port at Geraldton and access to power from the north-west gas pipeline.
Octava will pay $240,000 — in cash, or a combination of cash and shares — and issue 3 million shares to Byro’s shareholders, who will retain a 1% net smelter royalty over the project.
Upon publication of a scoping study, or an equivalent high-level study completed by an independent mining consultant, Byro’s shareholders will be granted another 2 million shares.
Though binding, the deal remains subject to a number of conditions, including the completion of Octava’s due diligence, Octava’s satisfaction that Byro is cash and debt free, and the necessary board, shareholder and regulatory approvals.
“Previous work has identified the Permian black shales of the Byro sub-basin to be metalliferous, with anomalous REE and lithium that is laterally extensive over large thicknesses in historic drilling,” Octava Managing Director Bevan Wakelam says.
“With a low-cost entry point into this highly prospective project, Octava will investigate the potential for Australia’s first large-scale sedimentary deposit of REE and lithium. Metal extraction from black shale is a proven, low-cost technology and we will immediately get to work on material characterisation and initial mineral extraction testwork and further drilling.”
Permian black shales are known for their potential to host enriched polymetallic deposits, which can contain significant volumes of lower-concentration resources, such as base metals, rare earths, lithium, and other strategic minerals.
Previous soil sampling in the area by the Geological Survey of Western Australia found large anomalous halos of rare earth oxides up to 540 parts per million (ppm), plus lithium oxide up to 180ppm, over a strike length of 40km and width of 20km.
Historical drilling has also shown anomalous lithium oxide between 200ppm and 430ppm over thicknesses between 30m and 90m.
Octava said it may look to recover the metals from black shale using biologically-assisted leaching — ‘biomining’ — methods. Biomining, which presents a more environmentally friendly and more economically efficient alternative to producing metals, is already in use at some projects around the world, such as the Talvivaara mine in Finland.
Nevertheless, initial work at the Byro Project will involve characterising existing material and examining mineralogy and geochemistry, before the focus moves to beneficiation and extraction processes.
Given the “innovative nature” of the proposed activities, Octava said it hopes to take advantage of government research and development tax incentives and grants, and has already engaged with consultants from institutions in Australia and Europe.
In addition to the company’s planned acquisition of the Byro Project, the company owns the Talga Project near Marble Bar, the East Kimberley Project south of Halls Creek, and the Yallalong Project to the northeast of Geraldton.
Write to Oliver Gray at Mining.com.au
Images: Octava
