PERTH (miningweekly.com) – ASX-listed Leo Lithium and its Goulamina joint venture (JV) partner Ganfeng Lithium Group have struck a £2.5-million deal to acquire two mineral concessions in Mali from Bambara Resources and Kodal Minerals.

The concessions are located immediately to the south and east of the Goulamina project, and will increase the project’s land area from 101 km² to 287 km².

“We are pleased to have acquired these concessions. The Goulamina project has a 23-year mine life and this is likely to grow due to the very large increase in the Danaya resource announced in January. This increased land holding will enable the Goulamina JV to optimise the location of infrastructure and mining stockpiles over the long term and this will be especially useful for our Stage 2 expansion,” said Leo Lithium MD Simon Hay.

“Our initial plans for the concessions are to sterilise drill areas needed for near-term infrastructure and stockpiling and then to develop an exploration programme for the remaining area, to be implemented in future years. The concessions have had scant exploration to date and the Goulamina area has been shown to be very prospective for lithium mineralisation.”

In addition to the £2.5-million being paid to the vendors, the JV partners will also pay a 2% gross royalty. In the event of an economic mineral discovery on the area of the concessions and that discovery being supported by a bankable feasibility study, then on the granting of a mineral exploitation licence over that area, the Vendors have the right to be issued an equity-carried interest level of 15% for no initial consideration. The Goulamina JV has the obligation to expend a minimum of A$250 000 over two years on mineral exploration activities on the concessions.

Construction of the Goulamina project is currently on track, with 45% of the $255-million project capital having been committed, with the majority of the spend to take place this year.

The Stage 1, 2.3-million-tonne-a-year development will produce 506 000 t/y of spodumene concentrate, which will go entirely to Ganfeng under an offtake agreement. The Stage 2 development will see an additional 325 000 t/y of spodumene added to the production portfolio, for a further investment of $70-million.