CuFe Ltd (ASX:CUF) has entered into an agreement with a private vendor to acquire tenement E15/1495 in the emerging Southern Yilgarn Lithium Belt, some 50 kilometres south-southeast of Coolgardie, in the Goldfields region of Western Australia.
The new tenement acquisition offers an opportunity to add lithium to CuFe’s future-facing critical mineral portfolio, while also leveraging the company’s experience and contacts within the lithium space.
The 14-square-kilometre tenement sits about 20 kilometres away from Mineral Resources’ Mt Marion Lithium Mine, a producing lithium mine currently being upgraded to produce 900,000 tonnes of mixed grade spodumene concentrate per annum.
CUF believes the tenement is prospective for lithium-tantalum mineralisation, with potential for high-grade lithium-bearing pegmatites due to known occurrences immediately adjacent to the tenure.
Lithium and tantalum are currently particularly high-value minerals for exploration, given their position on the Australian Government’s Critical Mineral list.
Critical minerals are elements considered essential for the function of modern technologies, economies or national security, especially when there is a risk that supply chains could be disrupted.
Exploration to begin shortly
“We are pleased to acquire a landholding in an established lithium province,” CuFe executive director Mark Hancock said.
“While it’s early days for this ground, it is clearly located in a prospective geological setting which hosts several other commercial lithium discoveries.
“If we have exploration success the proximity to existing lithium concentration facilities and the CuFe team’s prior experience in lithium DSO (dry shipping ore) export offer clear pathways to market.
“Our experienced exploration team is ready to get started and will be on the ground shortly.”
CUF will pay $300,000 in initial cash consideration for the tenure, with an additional $300,000 milestone payment should production occur in the future from the land package, and a 1% gross sales royalty.
CuFe expects to put boots on the ground at its new lithium tenement by next month, having already completed a reconnaissance visit and planning of a detailed mapping and rock chip sampling campaign.
The company will investigate historical surface workings and search for any outcropping pegmatites that may be prospective for lithium.