Arcadia Minerals Limited (ASX:AM7) jumps 43% on acquisition of lithium project

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Arcadia Minerals Limited (ASX:AM7) jumps 43% on acquisition of lithium project

Arcadia Minerals
Image source: Arcadia Minerals Website

Highlights 

  • Arcadia announced the acquisition of proven lithium project with existing JORC mineral resources, adjacent to its Bitterwasser Lithium Project.
  • The tenements hold an inferred JORC Mineral Resource of 15.1 million tons @ 828ppm Li and 1,79% K at a cut-off grade of 680ppm Li with significant potential to host a lithium-in brines aquifer.
  • The mineral resource represent just 6% of the exposed clay pans at the new tenements
  • Arcadia plans to commence the auger drilling program in November 2021 with an objective to upgrade the existing resource.
  • The Mineral Resource compares favourably with similar deposits in Nevada, USA
  • Proof-of-Concept study for Lithium Brine and sub-surface clay potential at Bitterwasser underway to guide exploration over a geological feature known as the “Kalkrand Half-Graben”, which displays first order requirements to possibly qualify as the world’s latest district scale Lithium province

Shares of Arcadia Minerals Limited (ASX:AM7) zoomed 43.75% on Wednesday following an upbeat announcement of the acquisition of a proven lithium project with existing JORC mineral resource, adjacent to its Bitterwasser Lithium Project.

Arcadia announced that its 50% owned associate firm, Brines Mining and Exploration Namibia (Pty) Ltd has entered into a conditional agreement to acquire 100% stake in the Exclusive Prospecting Licences 5358, 5354 and 5353. The tenements will be acquired from LexRox Management Services (Pty) Ltd, a South African company managed by the executive directors of Arcadia.

Suggested Read: Arcadia Minerals sets its sights on unlocking Namibia’s untapped minerals potential

Some of the terms of the acquisition agreement are as follows –

  • the right to acquire 25% for a consideration of AU$87,000 by ~May2022
  • the right to acquire 100% for a consideration of AU$176,000 within 2 years of the initial acquisition.
  • An additional consideration of ~AU$615,000 to be paid upon completion of a DFS over a resource containing >500,000 tons of LCE arising from lithium-in brines

Defined JORC Resources with significant potential for upgradation

The tenements together hold an inferred JORC Mineral Resource of 15.1 million tons @ 828ppm Li and 1,79% K at a cut-off grade of 680ppm Li with significant potential to host a lithium-in brines aquifer.

The mineral resource represent just 6% of the exposed clay pans at the new tenements, indicating significant potential for the expansion of resources. Also, the resource has been delineated over just one of the seven mineralised clay pans at the project which hold Li, K, and B.

Suggested Read: Arcadia Minerals (ASX:AM7) hits its stride with ASX listing, bets on battery metals

The new tenements expand over ~593km2 area, offering the company extensive geological knowledge to maximise its understanding of the Lithium opportunity at the existing ~3,438km2 of clay pans and brines potential at the Bitterwasser Lithium project.

Arcadia Minerals Limited

Arcadia’s lithium clay deposits against similar deposits globally Source: Arcadia Minerals 3 November 2021

When compared to similar world class lithium clay projects, Arcadia’s Clay deposits stand strong and hold geological similarities with the clay deposits in Nevada, USA.

Important Read: Arcadia Minerals Ltd (ASX:AM7) kicks off exploration at Swanson and Karibib

Next Steps

Arcadia plans to commence the auger drilling program in November 2021 with an objective to upgrade the existing resources. The Bench scale metallurgical test work to assess the potential lithium recoveries from the Clay Units have already been completed.

Currently, Arcadia is conducting a “Proof-of-Concept” study at the Bitterwasser lithium project to explore the “Kalkrand Half-Graben” geological feature at the project.

Also Read: Arcadia Minerals Limited’s (ASX:AM7) Recipe for success on ASX

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