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Arcadia Minerals Ltd (ASX:AM7) makes significant strides in June quarter, shares future plans

Highlights

  • On 25 June 2021, Arcadia listed on the ASX after concluding an oversubscribed IPO.
  • AM7 owns a diversified suite of mineral projects with special focus on battery metals and gold.
  • AM7 plans to undertake a Hydrological study at the Bitterwasser Project to determine the concentration of lithium and boron in the subsurface groundwater.

Guernsey-domiciled, diversified Minerals exploration company Arcadia Minerals Ltd (ASX:AM7) on June 25 successfully listed on the Australian Stock Exchange (ASX) following an overwhelming response to the AU$6.4-million IPO (initial public offer).

Recently, the company released its activity report for the quarter period ending on 30 June 2021, outlining the major milestones achieved by Arcadia during the period. The quarter saw culmination of milestones related to the ASX listing, capital raising and acquisition of the Namibian projects.

IPO places AM7 to unlock true potential across portfolio projects

Arcadia management is not only focused on the battery metals projects in Namibia but it is also pursuing substantial gold exploration potential at the Karibib project. On 25 June 2021, Arcadia listed on the ASX after concluding an oversubscribed IPO, issuing 32,000,000 CHESS Depositary Interest (CDIs) under the public offer at an issue price of AU$0.20 a unit.

Budget allocation by Arcadia Minerals Source: Arcadia Minerals June Quarterly Report

The AU$6.4-million funds raised will be utilised to fund aggressive exploration programs across its projects. During the June quarter, a total of AU$155,000 were spent towards the exploration and development activities. The IPO proceeds will allow Arcadia to unlock the full value of battery metals and gold projects.

Diversified mineral projects added to the portfolio

On 17 June 2021, a week before the listing on the ASX, the company acquired a suite of mineral’s projects –

  • 80% stake in Orange River Pegmatite (Proprietary) Limited, the Namibia-based company, ORP, owns the Swanson tantalum and lithium project and the Kum-Kum nickel, copper and platinum group elements Project.
  • 50% stake in Brines Mining Exploration Namibia (Proprietary) Limited, which owns the Bitterwasser lithium Project.
  • 80% stake in Karibib Pegmatite Exploration (Proprietary) Limited, which owns the Karibib gold and the copper Project.

Upon the completion of the acquisition of these projects, a total of 45,000,000 CDIs and 8,550,000 performance shares were issued to its vendors.

Swanson Project: An Ace in the making

The Swanson Project stretches over 19.4 km2 area on the exclusive prospecting licence 5047, located 100 km south of Karasburg and 15 kms north of the Orange River. The project hosts numerous well-mineralised pegmatites, which are mainly found in the Tantalite Valley Shear belt. The pegmatite strikes northeast – southwest and is a few cm to 10m thick.

The pegmatites are primarily being targeted by ORP for tantalum minerals and spodumene. In fact, the company has already executed an extensive mapping and sampling program which resulted in the identification of 15 well-mineralised pegmatites at the project.

Must Read: Swanson Tantalum project bodes well for Arcadia (ASX:AM7) as 5G market is set to gain traction

The program received encouraging results delineating the potential presence of a substantial tantalum resource along with minor lithium occurrences. The preliminary sampling program was followed by a limited drilling campaign. An operational tantalite mining operation, owned by Kazera Global PLC, is located within the boundaries of EPL 5047.

As for the September quarter, AM7 plans to –

September quarter plans for the Swanson project Source: Arcadia Minerals 4 August 2021

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

Kum-Kum Ni-Cu-PGM Project

The Kum-Kum project includes exclusive prospecting licences, 6940, 7295 and 5047, in the neighbourhood of the Swanson project and stretches over an area of 787.61 km2. AM7 holds an 80% effective stake in the Kum-Kum Project.

Kum Kum is an early-stage exploration project where the initial exploration efforts demonstrated the prospectivity to host a potential magmatic-hosted sill/dyke complex-type Ni-Cu-(PGE)-(Au)-(V-Co-Cr-Fe) sulphide deposits.

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

Initial reconnaissance work has been completed on the three licences but is not sufficient to allow any exploration targets to be considered for JORC mineral resource classification.

The company plans the following exploration activities for the September quarter at the project –

  • Interpretation of hyperspectral information.
  • Commencement of Mineral System Approach investigation of the Tantalite Valley Complex.
  • TDEM Survey

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

Karibib gold and copper Project

The Karibib project includes the exclusive prospecting licence, 4663, located 45 km south of Karibib and stretches over an area of 409,86 km2. The project is in the immediate neighbourhood of the operational Navachab Gold Mine and the trending Twin Hills gold discovery.

AM7 owns a 68% stake in the Karibib Project following the acquisition. Although some reconnaissance work has been completed at the Karibib Project but it is not sufficient for JORC mineral resource classification.

The planned activities for the September quarter include –

  • Results of the grab sampling program over mineralised outcrops
  • Results of the IP geophysical survey

Bitterwasser lithium Project

The Bitterwasser Project includes 5 exclusive prospecting licences which stretch over an area of 3,438.94 km2.

The Bitterwasser Saltpan Complex adheres to the first order geological and environmental principles that are essential for the development of significant lithium clay and brine deposits. The historical exploration activities included a ground electrical conductivity survey, which indicated the presence of an anomalous electrical-conductive body, 20m below the current groundwater level.

Currently, the project does not hold any reserves or resources and is classified as an 'exploration project'. The project is considered to be prospective enough to warrant future exploration activities at the site.

AM7 plans to undertake a Hydrological study during the September quarter to determine the concentration of lithium and boron in the subsurface groundwater.

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

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