How promising is Arcadia Minerals’ (ASX: AM7, FRA: 8OH) new Namibian lithium clay project?

Highlights

• Arcadia’s associate Brines Mining and Exploration Namibia has acquired 100% interest in Bitterwasser Lithium-in-Clay Project.
• Currently 14 exposed clay plans exist on the project, with only two pans currently hosting a total JORC inferred mineral resource of 327,284 tons of lithium carbonate equivalent (LCE).
• Infill drilling has been completed at the Eden lithium-in-clay pan, where an existing JORC Mineral Resource of 286,909 tons LCE at a cut-off grade of 500ppm Li.
• For supplementary leach testwork, a 140kg composite sample has been gathered from the site post infill drilling.
• Drilling at the Meerkat Pan has commenced.

Arcadia Minerals Limited (ASX: AM7, FRA: 8OH) is an ASX-listed diversified exploration firm mainly focused on battery metal projects. In September 2023, the company completed 100% acquisition of Bitterwasser Lithium-in-Clay Project, Namibia.

Strategic acquisition of the project

Brines Mining and Exploration Namibia (Pty) Ltd (BME), an associate of AM7, has acquired Bitterwasser Lithium Exploration (Pty) Ltd (BLE). With this development, BME acquired 100% interest in Bitterwasser Lithium-in-Clay Project, previously owned by BLE. With the completion of this transaction, BLE has acquired three exclusive prospecting licenses - EPL5358, EPL5354 and EPL5353 in Namibia. Over these three licences, fourteen pans are located.

Over two pans, resource drilling was conducted, and the inferred mineral resource of the project stands at 327,284 tons of lithium carbonate equivalent (LCE). 

The company aims at converting a significant portion of the mineral resource into the indicated category from the inferred category, therefore, it is focused on conducting infill drilling campaign at the Eden Pan. Moreover, a pre-economic assessment and scoping study are planned over this pan to ascertain its economic potential.

Progress at Bitterwasser Lithium Clays Project

On 1 December 2023, the company informed that it has concluded infill drilling at the Eden Pan and has initiated drilling at the Meerkat Pan. Details here.

Over the Eden Pan, the company continued its exploration activities by concluding the third phase of auger drilling for 26 infill holes. The two phases of drilling include 80 holes at a grid spacing of 500m and it led to the JORC Mineral Resource of 286,909 tons LCE at a cut-off grade of 500ppm Li within 85m tons.

At Eden Pan, 13 QAQC and 155 clay samples were collected and would be transported to Scientific Services, South Africa for assessment. Commencement of pre-economic assessment/scoping study is dependent upon the assessment results.  

Metaltek has implemented a Fines Optimized Heap Leaching (FOHL) process as an efficient deposition leaching method that helps in extracting several target metals from challenging feed materials.

To evaluate the feasibility of the FOHL leach process, preliminary laboratory testwork will be carried out on the composite samples collected at the time of infill drilling.

AM7 shares last traded at AU$0.07 apiece.