Lithium Consolidated Obtains 2 New Mozambique Lithium Licences; Shares Zoomed Up By More Than 30%

  • Mar 25, 2019 AEDT
  • Team Kalkine
Lithium Consolidated Obtains 2 New Mozambique Lithium Licences; Shares Zoomed Up By More Than 30%

Lithium Consolidated Mineral Exploration Ltd (ASX: LI3) declared that it has successfully obtained 2 new lithium exploration licenses in the Alto Ligonha Pegmatite Province (ALPP) in northern Mozambique (the Mozambique Assets). It is also the first ASX listed company to enter Mozambique for hard rock lithium.

ALPP holds a huge concentration of pegmatites in Mozambique, consisting of numerous examples of Lithium Caesium Tantalum (LCT) family of pegmatites, which have been mined since the 1920s.

During the 1960s, Mozambique was the second biggest beryl producer, though the lithium-bearing minerals were not exploited in the Beryl and tantalite mining.

Alto Ligonha Pegmatite Province (ALPP)

The ALPP is principally located in the NNE - SSW trending Namama Thrust Belt/Shear Zone. It extends from Mocuba in the southwest to around 100km northeast of Alto Molocue in the northeast in the Zambézia Province of North Mozambique region.

ALPP consists of Pegmatites which is well-known for their gemstones, and rare-element minerals like beryllium, tantalum etc. The province also has additional potential for unrecognized LCT pegmatites in the neighbourhood of earlier mined pegmatites. It also has several abandoned historical workings, which might have initial small-scale lithium and tantalum production potential which enables for quick start-up. Besides, the province has a potential for the delineation of bigger, and pegmatite held lithium mineralisation via systematic exploration. 

The present exploration maturity of ALPP can be compared to that which existed in the Pilbara and Yilgarn Craton pegmatites of West Australia region. It took place around a decade ago, before the modern lithium-based exploration. The exploration gave an outcome of huge lithium resources in the Pilgangoora, Wodgina, and Earl Grey pegmatites.  

The region of North Mozambique contains well-developed infrastructure coverage for mining. The Mozambique assets are close to the Mocuba-Nampula main road which is a sealed, all-weather road. The latest upgraded Nacala railway corridor connects Nampula to the natural deep-water port of Nacala, the main port for the export of coal from mining operations at Moatize.

On securing the new licenses, Shanthar Pathmanathan, MD, LI3 said that the company is on its way to consolidate its land position in northern Mozambique. LI3 believes that it would develop into an internationally significant lithium province. The company is aiming towards obtaining a major share of lithium supply from Mozambique region. 

Mozambique comes under a pro-mining jurisdiction and has a favourable fiscal regime and mining code. The corporate tax rate is 32% of net profits and capital gains with an effective royalty on lithium minerals production of 3.0%. Lithium Consolidated has been granted 2 new Licenses covering a region of 10,977 ha (10.98 square kilometres).

The Mozambique Assets include two granted licenses, namely 9190L and 9167L sprawling an entire region of 10,977 ha. The evaluation of Aerial image had recognized potential pegmatite outcrops with artisanal workings and pegmatite outcrops, which calls for systematic mapping and sampling.

If the early appraisal is encouraging, evaluation via programs of surface sampling for indicator element geochemistry would be followed by shallow drilling, with or without supporting geophysics. Few of the abandoned small-scale tantalite or beryl workings, might reflect an initial development and production potential if economic lithium mineralization is discovered. 

License 9190L is in the northeast of ALPP, in the Alto Ligonha pegmatite field. The host rocks to the pegmatites majorly consist of gneisses from the Mamala Gneiss, the Molecule Group and the Culicui Suite of the Nampula Complex. 

License 9167L is in the southwest part of the ALPP within, known as Mugeba pegmatite field. The license covers several potential pegmatite clusters, and at least 9 areas of possible artisanal workings, identified from satellite imagery, three of which are remote from the earlier recorded pegmatites around the Murrule-Nigula cluster.

At the end of the trading session, the company’s stock stood at A$0.060 (as on 25 March 2019), up by 30.435% from its previous close.


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