JOHANNESBURG (miningweekly.com) – Western Australia-focused miner Tawana Resources’ subsidiary Lithco has spent the required $7.5-million to earn a 50% interest in all lithium rights at the Bald Hill mine tenements, south east of Kambalda.
Tawana in February entered into a farm-in agreement with Bald Hill’s holding company Amal to set up a joint exploration venture. In May, the miner earned its 50% rights to all lithium minerals from the tenements.
The ASX-listed miner is required to spend $12.5-million in capital expenditure on upgrading and converting the plant for processing ore derived from the project, infrastructure costs, prestripping activities and other expenditures, including operating costs, by December 31, 2019.
Tawana now plans to deliver the Bald Hill feasibility study by the first week of July to allow the respective boards to give final approval for the construction of the dense-media separation plant for lithium production.
During the earn-in period, the partners have declared a maiden indicated and inferred lithium mineral resource of 12.8-million tonnes at 1.18% lithium oxide (Li2O) and 158 ppm tantalum at a 0.5% Li2O cutoff.