Accelerate Resources Ltd (ASX:AX8) has boosted its coffers by $300,000 following the sale of two non-core exploration licences to Fortescue (ASX:FMG) subsidiary FMG Resources Pty Ltd, with the potential of more cash to come.
The sale was executed according to two key terms:
- a $300,000 cash payment at the time of sale completion; and
- a milestone payment of $500,000 cash upon Fortescue commencing mining within the areas.
Prinsep lithium drilling on horizon
Proceeds from the sale of the exploration licences will be channelled into the budget for the upcoming exploration and drilling campaign at Prinsep and the company’s larger Karratha Lithium Projects portfolio.
AX8’s Prinsep Project is an advanced, drill-ready lithium pegmatite system in the rapidly developing Karratha-Roebourne hard-rock lithium belt, just 35 kilometres west of Azure Minerals’ Andover lithium discovery.
Permitting and heritage survey activities for the Prinsep Lithium Project maiden drilling program have already been submitted in preparation for the campaign.
Prinsep is only 15 kilometres south of the regional service centre of Karratha and 35 kilometres west of Azure Minerals’ Andover lithium discovery, which is currently subject to a $1.7 billion takeover offer by SQM and Hancock Prospecting.
The project forms part of the company’s wider Karratha Lithium Projects portfolio which encompasses 90 square kilometres of prospective tenure within the emerging Karratha – Roebourne hard-rock lithium belt.
To date, mineralisation has been defined across two subparallel pegmatite zones, each over 1,800 metres in length with widths up to 60 metres.
Significant rock chip sample assays results from Prinsep include 2.06% lithium dioxide (Li2O), 1.87% Li2O, 1.66% Li2O, 1.55% Li2O and 1.31% Li2O.
Next steps
AX8 is actively engaging with the traditional owners to finalise the Native Title Agreement (NTA) and to confirm a heritage and ethnographic survey date.
Discussions are progressing well with the NTA expected to be executed in the coming weeks.
A program of works for the maiden drilling program has been submitted to the Department of Energy, Mines, Industry Regulation and Safety (DEMIRS) for approval while consumables and infrastructure are sourced to ensure the drills can be rapidly deployed once approvals come in.