Cadence Minerals to acquire lithium assets in Argentina

13 December 2017 (Last Updated December 13th, 2017 17:58)

UK-based exploration firm Cadence Minerals has signed agreements with Lithium Technologies and Lithium Supplies to acquire up to 100% of six prospective hard rock lithium assets in Argentina.

UK-based exploration firm Cadence Minerals has signed agreements with Lithium Technologies and Lithium Supplies to acquire up to 100% of six prospective hard rock lithium assets in Argentina.

Through the transactions, Cadence is embarking on a new strategic initiative to earn-in to early stage lithium assets in well-known lithium jurisdictions with potential for investing in projects that have shorter development timeline to cashflow.

The exploration permits are spread over 55,773ha and are located within the known spodumene bearing pegmatite fields in San Luis Province, Central Argentina.

Cadence Minerals CEO Kiran Morzaria said: “These assets tick all the boxes that we were looking for: located in a well-known lithium producing country and in a large pegmatite field with known lithium compound production; potential to deliver quicker and cheaper development timelines and produce lithium oxide concentrate; near-term value triggers in the form of sampling and drilling and low cost in terms of the acquisition itself and the mineral exploration.”

“These assets tick all the boxes that we were looking for: located in a well-known lithium producing country and in a large pegmatite field with known lithium compound production.”

Based on initial site visit and reviews, Cadence has confirmed the presence of multiple pegmatite outcrops across the six claims.

Historically, the pegmatite fields of San Luis produced mica, beryl, spodumene, tantalite, columbite, and recently potassium feldspar, albite, and quartz.

The company plans to evaluate and define the most prospective targets across the six areas, with an initial focus on geological mapping, mineralogical studies of exposed pegmatites and the mapping and any newly identified historical workings.

The programme is expected to begin in the first quarter of next year.

An extensive sampling programme will then be carried out to identify any potential mineralisation, with the company then developing a drill programme.

Under the agreements, Lithium Technologies and Lithium Supplies will retain a 1.5% net smelter royalty on products produced from the assets.