Lightning Minerals Ltd (ASX:L1M) is gearing up to begin ground reconnaissance at the Caraíbas and Sidrônio Projects in Brazil’s prolific Lithium Valley, having completed all due diligence and met conditions precedent to seek approval to acquire the projects.
The company’s contracted geologists will begin the groundworks this week, preparing for a site visit by managing director Alex Biggs and exploration manager Jarrad Woodland in early June.
Highly prospective lithium ground
“It is with great pleasure that we announce completion of due diligence on Bengal Mining and the Caraíbas and Sidrônio projects in Brazil’s Lithium Valley region of Minas Gerais,” Lightning Minerals managing director Alex Biggs said.
“All conditions precedent (except shareholder approval which is sought at the upcoming EGM) have also been completed.
“Gaining access to these projects and this region of Brazil is a significant achievement for the company and provides us with highly prospective lithium ground in one of the most prospective lithium regions globally.
“We are believers of the lithium and green energy thematic and have used the downturn in lithium prices as an opportunity to acquire projects that we see as cornerstones to our growth.
“We endorse Brazil as an excellent jurisdiction in which to do business and have some clear analogues from other operators in the region on how quickly projects can be defined and developed.
“I will be on the ground in early June to complete a site visit plus attend the Lithium Summitt conference in Belo Horizonte and look forward to updating you all on our progress.”
The acquisition terms include resource milestones based on targets of 5 million, 10 million and 30 million tonnes, demonstrating the vendor’s confidence that the tenure will hold economical lithium mineralisation.
Globally significant lithium district
The Lithium Valley region of Minas Gerais, Brazil has emerged as one of the world’s premier lithium districts over the past few years, with sizable projects being developed in the area and especially within the host Salinas Formation.
Just 20 kilometres to the north of L1M’s proposed acquisitions sits Latin Resources Ltd (ASX:LRS, OTC:LRSRF)’s Colina lithium project, which hosts a mineral resource estimate of 70.3 million tonnes at 1.27% lithium, while Signa Lithium’s Grota do Cirilo project is just 60 kilometres to the southeast, hosting 108.9 million tonnes at 1.41% lithium oxide.
Caraíbas and Sidrônio project location, geology and tenements.
The projects themselves have already demonstrated prospectivity for lithium, with previous rock chip assays grading up to 0.55% lithium oxide (lepidolite) over several identified pegmatites.
The tenure has also produced promising indicators of further prospectivity, with rock chips containing up to 1,245 parts per million (ppm) tantalum, 1,175 ppm rubidium and 1,455 ppm caesium – all pathfinder elements for hard rock lithium.
Lightning Minerals says the project also had strong aeromagnetic geophysical trends that correlate with regional mineralised trends.
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