Oar Resources Ltd (ASX:OAR) has inked a binding option term sheet for the acquisition of one granted tenement and two tenement applications, covering a combined area of 217.7 square kilometres and adding lithium to the company’s diverse project portfolio.
The deal has been signed with Denchi Pty Ltd and First Standard Minerals Pty Ltd for the 100% acquisition of a lithium project around 50 kilometres west of Wiluna in the Northern Goldfields of Western Australia.
Prospective LCT tenements
The tenements expose OAR to prospective lithium-caesium-tantalum (LCT) pegmatite targets with historic lithium and rubidium anomalies reported from historical rock chips.
The rock chip samples, taken in 2019, revealed lithium and rubidium anomalies, along with the presence of other minerals common in LCT pegmatites. These were provided to OAR by Denchi and verified using DMIRS’ historical exploration reporting system, WAMEX.
The type of pegmatite found at the project is the same host rock found at several key lithium projects including Pilbara Minerals’ Pilgangoora project and Talison’s Greenbushes operation.
In WA terms, the project is close – 120 kilometres northwest – to Liontown Resources (ASX:LTR)’ Kathleen Valley lithium deposit, which holds a mineral resource estimate of 156 million tonnes at 1.4% lithium dioxide (Li2O) and 130 parts per million (ppm) tantalum pentoxide (Ta2O5).
“Race for renewables”
OAR executive chairman Chris Gale said: “This exciting lithium project will add to our strategy of developing Oar Resources into a battery metals-focused company.
“OAR currently has a graphite project in South Australia and now with a lithium project in our stable we have two key battery metal elements to focus on, then hopefully develop to the next stage of drilling out a resource.
“The Denchi Project is in proximity to large, established lithium projects. The historical rock chip sample data, as well as our initial reconnaissance completed last month, which identified outcropping pegmatites, have demonstrated the project is prospective for LCT pegmatites and warrants imminent exploration activities.
“We see this project as a valuable addition to our stable of critical mineral assets that are in demand globally as the race for renewables continues to accelerate.”