Gold explorer OzAurum Resources (ASX:OZM) has signed a binding term sheet with Jamie de Souza Pacheco to acquire the Linopolis Jaime hard rock Lithium Project in Brazil.
The $4.06 million market capitalisation company says the project, which lies in the state of Minas Gerais, is situated on a strategically held area of over 20 lithium-caesium-tantalum (LCT)-bearing pegmatites but has undergone no lithium exploration.
Grades of up to 7.36% lithium oxide (Li2O) with an average spodumene grade of 6.94% Li2O have been returned from the project within a +7m-wide spodumene zone consisting of at least 20% volume coarse spodumene crystals up to 1m in length at the Sito do Estevinho underground mine workings.
Following the news of the purchase, OzAurum’s share price has more-than-tripled, up 203.13% to $0.097 as of 1:30pm AEST.
Under the term sheet, OzAurum will pay US$10,000 for the exclusive right to conduct due diligence on the project, which must be completed in 45 days. If satisfied with the investigations, the company will then pay US$20,000 in return for the option to acquire the mineral rights to the project.
Under the option, OzAurum will need to fork out a total consideration of US$800,000 — which includes US$30,000 in option fees — in cash instalments over 24 months.
The instalment payments consist of US$50,000 payable 6 months after the grant of the option, US$120,000 payable 12 months after the grant, and a further US$600,000 payable 24 months after the grant.
In conjunction with the acquisition, OzAurum has made applications for new tenements west and north of the municipality of Governador Valadares.
In total, 10 tenements have now been applied for covering an area of 19,700 hectares within 65km of the Linopolis Jaime Project. The company considers this area to be ‘highly prospective’ for lithium discoveries, being the southern extension of the known LCT pegmatite belt.
Speaking on the acquisition, OzAurum Resources Chief Executive Officer (CEO) and Managing Director Andrew Pumphrey says: “We believe this is an ideal opportunity for the company to acquire strategic lithium projects in addition to the Mulgabbie and Patricia Gold Projects in Western Australia.
“The advanced Jaime Linopolis lithium Project … offers an immediate drill target and potential for a new lithium discovery”
In particular, the advanced Jaime Linopolis lithium Project, with a +7m wide spodumene zone with an average grade of spodumene crystals of 6.94% LiO2, offers an immediate drill target and potential for a new lithium discovery. Significant upside also exists, with over 20 LCT pegmatites identified within the project area to date.
Coarse spodumene crystals up to 1m in length are rare in lithium deposits and are also seen at Greenbushes and Mt Marion in Western Australia. Brazil is fast becoming a Tier-One hard rock lithium producing jurisdiction in the world, with Sigma Lithium leading the charge with a targeted production rate of 104,000tpa lithium carbonate equivalent ‘LCE’ from a hardrock reserve base of 54.8 Mt @ 1.44% LiO2 and also CBL’s underground lithium mine. Both are located only 200 kms north of the project.
We are very excited by the opportunities that these projects will bring to the company and look forward to exploring and providing updates to shareholders.”
Sigma Lithium’s Grota do Cirilo open pit project and the Companhia Brasileira de Litio underground lithium mine are both situated 200km north of the project area.
OzAurum Resources is a Western Australian explorer with gold projects located about 130km northeast of the township of Kalgoorlie.
Write to Adam Drought at Mining.com.au
Images: Ozaurum Resources