PERTH (miningweekly.com) – ASX-listed Tawana Resources has moved to increased its footprint in Western Australia by acquiring the Lake Cowan lithium project from fellow-listed Metalicity.
The Lake Cowen project borders Tawana’s own Cowan lithium project, as well as its 50%-held Bald Hill lithium and tantalum project.
The Lake Cowen project comprises two exploration licenses totaling 410 km2, and one application comprising 152 km2.
Under the terms of a binding agreement between Tawana and Metalicity, Tawana will issue A$50 000 in cash and 769 230 of it own shares to Metalicity.
“While we are currently focused on commencing production at the Bald Hill mine in early 2018, the enlarged Cowan lithium project, which includes a significant portion of the same rare metal pegmatite belt, offers exciting targets for future exploration drilling,” Tawana MD Mark Calderwood said on Monday.
“Exploration to the north of these newly acquired tenements continues to expand the known limits of rare metal pegmatites southwards. Over time, I expect the pegmatite belt to prove one of the most important producers of lithium and tantalum in Western Australia.”
Meanwhile, Metalicity on Monday also exercised its option to acquire the Napier Range zinc project, and the Emanuel Range zinc project, in the Kimberley region of Western Australia.
Under the terms of the option agreement with Chinese enterprise Northwest Nonferrous International Investment Company, Metalicity would pay A$450 000 in cash by November 22, and a further A$500 000 in cash six months thereafter. A further payment of A$1-million in cash would be made by November 22, 2018.
Metalicity on Monday pointed out that the Napier Range project included the Wagon Pass deposit, which is estimated to host a mineral resource of some 750 000 t, at 13.6% zinc equivalent, with the Emanuel Range project comprises an extensive 30-km strike of a largely untested target adjoining the Pillara zinc deposit.
Metalicity has completed field work, exploration targeting and base case financial modelling for the projects, and is now looking to start an aggressive exploration programme to determine the capacity of the projects to provide a source of cash flow for Metalicity’s ongoing advancement of its Admiral Bay zinc project.