Lithium Energy Ltd has inked binding agreements to consolidate a series of contiguous exploration tenements in Central Queensland, which will form a new district-scale project named the Capricorn Gold-Copper Belt Project.
Highly prospective district
The tenements, covering some 1,795 square kilometres, are adjacent to the historical Mt Morgan Gold Mine and are highly prospective for gold, porphyry copper and volcanic massive sulphide (VMS) mineralisation.
The acquisition terms include:
- a cash payment of A$3 million, payable over two years;
- contingent payments of up to A$2.5 million based on exploration success and feasibility study milestones; and
- a 2% net smelter return (NSR) royalty, with a partial buy-back option.
Additionally, Lithium Energy has committed to a minimum exploration and evaluation expenditure of A$4 million over the next two years.
The company intends to launch an extensive exploration program over high-priority targets as soon as the acquisition is finalised.
The tenement consolidation will further the company’s case with the ASX to recommence trading, subject to further consultation with the exchange.
Lithium Energy has reviewed substantial historical exploration data from the project area but notes that this data has not yet been fully validated to meet JORC Code (2012) standards.
The company will continue to assess and incorporate relevant historical findings as exploration progresses.
Exciting new direction
Lithium Energy executive chair William Johnson said: “The acquisition of the Capricorn Project is the first new project acquisition since the company sold its flagship Solaroz Lithium Brine Project in Argentina and sets an exciting new direction for Lithium Energy.
“This is the first time that this extensive group of tenements has been consolidated under a single ownership.
“The Capricorn Project acquisition presents the company with an exciting series of prospective targets in an area surrounding and adjacent to the historically highly productive Mt Morgan gold mine.
“Following completion of the acquisition, Lithium Energy will undertake an extensive program of exploration activities including data compilation, geophysics and drilling to test the highest priority target zones in the Capricorn Project – including seeking repeats of multiple Mt Morgan style gold-copper and porphyry copper-molybdenum prospects.
“With regard to the current suspension of the company’s shares from trading on the ASX following the sale of the Solaroz Project, the ASX has confirmed that one of the conditions for reinstatement to quotation is for the company to demonstrate a sufficient level of activities.
“The commencement of activities on the Capricorn Project will be an important step towards the lifting of the suspension.”