Auroch to acquire 90% of Karibib lithium project located in Namibia
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Auroch Minerals (ASX:AOU) has exercised an option to acquire 90% of EPL 5751, part of the Karibib lithium project located in Namibia.
Management’s confidence in the prospectivity of the asset has been boosted by assay results which returned up to 2.73% lithium dioxide during first-pass reconnaissance fieldwork.
AOU’s joint venture partner is Namibian entity, Dynamic Geo-Consulting Services (DGS). The option and joint-venture is for the exploration of base and rare metals, industrial metals (including lithium) and precious metals with a view to developing a mining operation should results indicate a commercially viable project can be established.
Importantly, AOU is in a strong financial position with $8.3 million as at March 2, providing it with the funds required to fulfil its side of the joint venture agreement by financing an exploration program.
It should be noted here that this is an early stage play, so investors should take a cautious approach to their investment decision and take all publicly available information into account.
From a broader perspective, AOU CEO, Doctor Andrew Tunks said, “The new joint venture is an important step in the growth of the Karibib lithium project as we continue to grow the company’s Namibian portfolio.”
While acknowledging that exploration is at an early stage, Tunks said that the identification of substantial lithium mineralised pegmatites across the licence has provided the scope for a focused exploration program.
Historical pegmatite occurrences at EPL 5751
Previous exploration has identified four pegmatite occurrences, referred to as Tsaobis, Nordenburg, Dorstriver and Villa Rosa. In the course of undertaking field visits AOU geologists have revealed lithium mineralisation at Tsabosis.
The company noted that at this stage mineralisation is confined to sporadic occurrences of Lithiophilite, and iron-manganese-lithium phosphate mineral, confirming that the pegmatite is an LCT pegmatite which is important from a broader perspective as it increases the potential to find lithium enriched mineralisation on the licence.
Management noted that airborne radiometric data showed there is potential for a continuation of the Tsaobis pegmatite, and within EPL 5751 there are mapped pegmatite occurrences not yet visited.
On this basis, management is of the view that there is a high potential to discover LCT pegmatites that contain the economically important lithium minerals, spodumene, petalite or the lithium micas.