A mining services company engaged in a deal with Novo Resources for 80 per cent of battery mineral rights at the Quartz Hill project has expanded the operation and increased the earn-in amount to $1.7 million.
In line with the original agreement with Novo’s subsidiary Nullagine Gold in December last year, private company Liatam Mining has spent an extra $200,000 after choosing to increase its exploration ground from 615sq km to 818sq km.
Liatam had been granted the right to earn the 80 per cent interest by spending $1.5 million over 24 months. It also had a one-time right to add further tenements of its choosing to the operation near the Nullagine gold project in Western Australia’s Pilbara region – which it has now done.
Novo retains its 20 per cent interest, in addition to holding all other rights within the project, including for gold and silver. In accordance with the original deal, it will also be free-carried to either a bankable feasibility study or $20 million in spending at Quartz Hill, depending on which occurs first.
The project now takes in 25 tenements, where Liatam is on the hunt for lithium-caesium-tantalum-style pegmatite-hosted lithium mineralisation in a bid to impact the growing battery industry. The unlisted explorer has already extended mapped pegmatite swarms at the site to a more than 5km of strike through reconnaissance work this year.
Novo retains a 20% interest in battery mineral rights at Quartz Hill, a 100% interest in all other rights including gold/silver and is free-carried to the earlier of a Bankable Feasibility Study or A$20 million expenditure by Liatam. Novo’s exposure to lithium and battery metals through our existing and proposed JVs and investments is part of our strategy to maximise value from our strong portfolio. Novo Resources executive chairman and acting chief executive officer Mike Spreadborough
WA-based Liatam Mining is a privately-held company focused on the exploration, extraction and construction of mining projects.
Novo’s decision to form a commercial partnership is seemingly tied to Liatam’s extensive resume in the battery minerals space, particularly with the Bald Hill lithium and tantalum mine, where the company assisted in the asset’s operational pre-commissioning.
Geological mapping and geochemical sampling continues at Quartz Hill, while a helicopter-supported mapping and reconnaissance program is expected to kick off this month.
And that could well lead to a win-win for both companies.
Once heritage and additional clearances are approved, Liatam says it expects to begin a drill campaign at the operation in the first half of next year.
Is your ASX-listed company doing something interesting? Contact: office@bullsnbears.com.au
Comments