MetalsGrove Mining Ltd (ASX:MGA) is trading higher on entering into a strategic agreement to acquire six, contiguous and highly prospective lithium-tin-tantalum claims in Zimbabwe, in what the company considers a “transformational” opportunity.
The newly acquired claims are close to the ‘world-class’ Arcadia Minerals (ASX:AM7) lithium-producing mine in Zimbabwe, which is one of the world’s largest lithium mines producing up to 450,000 tonnes per annum of lithium concentrate.
Notably, five claims are within the well-known Goromonzi lithium belt with the sixth claim located in the Beatrice lithium belt.
Looking ahead, MGA’s technical team is finalising plans for an initial exploration campaign which is due to kick off in the March quarter of 2024.
The markets have welcomed the news with shares trading as high as $0.105, up 40% from the previous close.
“Transformational opportunity”
MetalsGrove managing director Sean Sivasamy said: “MetalsGrove is very excited to be acquiring these advanced lithium assets which provide the company with prime exposure to the proven lithium-producing district in Zimbabwe.
“Importantly, the upfront acquisition terms are modest, allowing the company to set about rapidly advancing these projects through a targeted exploration campaign early next year.
“Further highlighting the near-term development potential of these projects, we will be located nearby to accessible high-quality infrastructure and a large-scale lithium processing facility.
“The board considers this a transformational opportunity for MGA supported by a strong lithium market and we look forward to advancing these assets as quickly as possible over the coming months.”
Project location (Arcturas and Beatrice projects)
Asset summary
The new claims spanning 510 hectares are situated across the Arcturas and Beatrice projects, where recent rock chip samples have returned grades up to 2.5% and 2.1% lithium respectively.
Arcturas Lithium Project (ALP) is 35 kilometres northeast of Harare and the Beatrice Project is 55 kilometres south of Harare.
The ALP is also close to the Arcadia Lithium Mine and the Arcturas Gold Mine.
The Arcadia Minerals lithium mine was purchased by Zhejiang Huayou Cobalt in 2022 for US$422 million.
Well-known pegmatite zone
This region is the most well-known pegmatite zone that is mineralised in spodumene, lepidolite, beryllium, tantalum and caesium.
The lithium minerals consist of spodumene and lepidolite-bearing pegmatites and are populated by several artisanal workings and pegmatite surface outcrops.
The pegmatites are exposed at the surface and close to the surface with some of the pegmatites being flat-lying.