OzAurum Resources Ltd (ASX:OZM) has wrapped up due diligence for the acquisition of the Linopolis Jaime hard rock lithium project in Minas Gerais, Brazil, and is on track to take possession.
Commitment to lithium
The Linopolis Jaime project and new tenement applications represent OzAurum's robust commitment to lithium exploration in Brazil, backed by strategic planning and targeted investments.
The project sits in an area rich with more than 20 lithium–caesium–tantalum (LCT) bearing pegmatites.
This area has confirmed spodumene grades of up to 7.36% lithium dioxide (LiO2) with an average spodumene grade of 6.94% LiO2. These spodumene crystals are unique in their coarse texture, a rarity in lithium deposits.
The project site has also seen intermittent mining activities for tantalite, beryl, tourmaline, brazilianite and feldspar by the Pacheco family and other artisanal miners over a 50-year period.
OZM managing director and CEO Andrew Pumphrey will travel to Brazil in mid-October for a month-long fieldwork program.
In-house diamond drilling capability
One of the activities he will oversee is progressing the purchase of a diamond drilling rig, which will give the company in-house diamond drilling capability and reduce drilling costs.
“I am keen to get back on the ground in Brazil and commence exploration of the company’s Linopolis Jaime project,” Pumphrey said.
“While there, I will be looking to acquire a diamond drilling rig and get our in-house diamond drilling capability organised which will provide us with certainty around our exploration program.
“We will also review additional lithium acquisition opportunities should they arise. We are very excited by the opportunities that these projects will bring to the company and look forward to exploring and providing updates to shareholders.”
On-site office; new tenements
The company will also set up an office in the Governador Valadares-Linopolis area as a base for its fieldwork activities.
Environmental permitting for drilling at the Linopolis Jaime site has already begun and groundwork, including the reinstatement of farm access tracks and roads, is underway.
In a broader strategic move, OzAurum has submitted applications for 10 new tenements covering an area of 19,700 hectares in regions north and west of Governador Valadares, prospective for lithium.
These applications are further proof of the company's extensive lithium exploration strategy.