Lightning Minerals Ltd (ASX:L1M) has inked a binding exclusive call option agreement for the acquisition of the Esperança Project, which is just 5 kilometres south of the company’s recently acquired projects in the prolific lithium district of Minas Gerais, Brazil.
This agreement offers L1M a 24-month low-cost option to acquire Esperança, which would offer an attractive consolidated land package, given the Caraíbas and Sidrônio lithium projects are so close by.
The decision to secure the acquisition option came after managing director Alex Biggs visited the project area while conducting a site visit to Caraíbas and Sidrônio, where he was able to verify the presence of outcropping pegmatite formations, which offer potential for hard rock lithium mineralisation.
Maximising potential
“The signing of the option agreement and potential acquisition of the Esperança Project is another positive step forward for the company in Brazil,” Biggs said.
“Following a successful site visit to Brazil we were introduced to this opportunity which is a positive move to consolidating our land position around the Caraíbas and Sidrônio lithium projects which we acquired in June.
“The location of the Esperança Project in highly prospective geology of the Salinas Formation adds to the potential of our land package which we are now beginning a focused exploration campaign on.
“The ability to complete low-cost option deals such as this presents significant opportunity to the company as it allows us to minimise our downside and maximise the upside potential by having multiple targets and projects.
“As we begin to evolve our business and works in Brazil, we look forward to the potential that lies ahead for the company supported by our presence in Lithium Valley, one of the most prolific lithium regions globally.”
L1M intends to expand ongoing ground reconnaissance, geophysics and soil sampling works at the Caraíbas and Sidrônio projects to cover Esperança as well, with the goal of producing drill targets.
Prolific lithium province
All three of Lightning’s Brazilian projects sit along the Salinas Formation, a fertile geological control host to multiple economic-scale lithium mineral resources.
One such example is Latin Resources Ltd’s Salinas Project, consisting of two prospects and two deposits with a global mineral resource of 77.7 million tonnes at 1.24% lithium, with 95% in the higher confidence measured and indicated JORC categories.
LRS is targeting near-term resource growth to more than 100 million tonnes.
Regional project location of Lightning Minerals’ Brazilian lithium projects
The region hosts more than 300 mines operated by major mining companies including Vale, BHP and Rio Tinto, in turn offering a strong mining labour pool and a cost-competitive jurisdiction for exploration and project development with mature infrastructure, hydropower and road access.
Options agreement terms for Esperança include a stage one payment of about A$13,500, with a further A$13,500 to be paid within 12 months in stage two.
L1M will also pay monthly payments of about A$32,400 over the 24-month period, unless the company elects to exercise or terminate the option at any time.
Should Lighting choose to acquire the project, the company will pay a further A$270,000, with a A$540,000 bonus if a mineral resource exceeding 10 million tonnes at 1.3% lithium is successfully defined.
L1M expects to expend about $100,000 on ground exploration works at Esperança over the next 12 months.