Boadicea Resources Ltd (ASX:BOA) has enhanced its focus on key battery metals by completing an earn-in agreement with Daly Resources Pty Ltd covering BOA's Hanns Gully lithium tenement in Queensland, a deal which incorporates the expertise of a former Core Lithium Ltd (ASX:CXO) (Core Lithium Ltd (ASX:CXO)) exploration manager.
This earn-in agreement involves an initial cash payment of $100,000 to BOA, as well as two staged investments for Daly Resources to earn up to an 80% interest in Hanns Gully.
The first stage requires Daly to spend $500,000 over two and a half years to earn up to a 51% interest and a further $500,000 over the subsequent two years to earn an additional 29%.
Once all earn-in conditions have been met an 80/20 joint venture will then be formed between the two parties with Boadicea free carried until the completion of the stage two funding.
Exposure to lithium
This agreement allows Boadicea to primarily focus on its Western Australian projects while also enhancing its exposure to lithium as part of BOA’s exploration strategy centred on four of the key electric vehicle metals – copper, nickel, cobalt and lithium.
Driving Daly Resources' efforts at Hanns Gully will be its founder and executive director Dr David Rawlings, who has significant lithium exploration skills as demonstrated in his time as exploration manager at Core Lithium where he was responsible for the discovery of the Finnis Lithium Project.
Through his successful career in lithium discovery, Rawlings will drive exploration activities at Hanns Gully for Daly, a Perth-based unlisted exploration company aiming to list on the ASX in 2023 and which has exploration assets in the Northern Territory and Queensland
Committed to in-ground exploration
“The Hanns Gully agreement provides an opportunity to grow exploration work on Boadicea’s tenements in the east of Australia, while our team focuses on our Western Australian tenements,” Boadicea Resources managing director Jon Reynolds said.
“Daly Resources provides significant expertise to our commitment of being in-ground explorers to prove up our tenements.
“Hanns Gully is a unique geological environment, and we are confident Daly Resources brings the right expertise we need to ensure exploration success.
“We are looking forward to working with Daly for a successful outcome and the potential discovery of a new lithium resource in Queensland.”
Hanns Gully tenement
Hanns Gully is within the Croydon district of North Queensland, an area historically mined for tin with 58 known occurrences of the mineral within BOA’s tenement boundary.
Through the earn-in exploration will target greisen-style igneous lithium deposits which are strongly associated with tin mineralisation, and coincident rubidium and lithium anomalies have been identified at Hanns Gully from historical stream sediment sampling.
BOA also has four other lithium projects within its battery metals portfolio:
- Two Tanks - Mt Ida district, Western Australia;
- Cat Camp - Lake Johnston district, Western Australia;
- Ant Hill - Lake Johnston district, Western Australia (application stage); and
- Bald Hill East - Bald Hills district, Western Australia.