Askari Metals Ltd (ASX:AS2, FRA:7ZG) last week outlined a broadened exploration pipeline at its Uis project in Namibia, after identifying seven new prospective pegmatite targets across two licences.
Executive director Gino D’Anna told Proactive that the company had used in-house hyperspectral analysis to generate the new targets across EPL 7345 and EPL 8535, adding further depth to Askari Metals’ exploration plans ahead of RC drilling expected to begin next month.
D’Anna said four new targets had been generated on EPL 7345 — Eve, GP, MW and K10 — with a further three targets, Tawni, Marshall and S1, identified on EPL 8535. He said some of the interpreted strike lengths were substantial, pointing to K10 at 3.1 kilometres, GP at 2.4 kilometres and Tawni at 2.2 kilometres.
For investors, the key catalyst is the transition from target generation into field validation and drilling. D’Anna said rock mapping and sampling had already been undertaken on the new prospects, with results awaited. The targets are expected to move into mechanised trenching before potentially being added to the company’s drilling pipeline later this year.
“These seven targets, as I indicated, they tick the box of scale and potential for getting a very significant global resource,” D’Anna said.
The company is initially focused on four key targets for RC drilling next month. D’Anna said Askari Metals hoped to have trenching equipment on site at the same time, allowing the company to continue multiple streams of exploration without demobilising from the project area.
Askari Metals’ Uis project is considered prospective for a suite of commodities, including tin, lithium, tantalum, rubidium and cesium. D’Anna said the project’s polymetallic nature gave it exposure to both tin, where he pointed to tightening supply, and critical minerals, which remain relevant to supply chain security.
The company’s location is also central to the investment case. Askari Metals shares licence boundaries with Andrada Mining, which operates the neighbouring Uis Tin Mine. D’Anna said the pegmatites Askari Metals is exploring are analogous to the pegmatites Andrada is mining.
He also highlighted Namibia as a stable operating jurisdiction, with available power infrastructure and access to the deep-water port of Walvis Bay, providing routes to European, American and Asian markets.
D’Anna said the presence of an operating neighbour could potentially help Askari Metals pursue development without carrying large capital expenditure on its own balance sheet.
Interview highlights
- Askari Metals has identified seven new prospective pegmatite targets at its Uis project in Namibia.
- The targets were generated through an in-house hyperspectral analysis across EPL 7345 and EPL 8535.
- Four targets were identified on EPL 7345: Eve, GP, MW and K10.
- Three targets were identified on EPL 8535: Tawni, Marshall and S1.
- K10 has an interpreted strike length of 3.1 kilometres, GP has an interpreted strike length of 2.4 kilometres and Tawni has an interpreted strike length of 2.2 kilometres.
- D’Anna said the work demonstrated the scalability of blind or buried pegmatites across the project area.
- RC drilling is expected to start next month on four key targets, while rock mapping and sampling has already been undertaken on the newly identified targets.
- The new targets are expected to move into trenching before potentially joining the company’s drilling pipeline later this year.
- Askari Metals’ Uis project is described as a polymetallic pegmatite project with exposure to tin, lithium, tantalum, rubidium and cesium.
- The project is located next to Andrada Mining’s Uis Tin Mine.
- D’Anna highlighted Namibia’s stable operating environment, access to power infrastructure and proximity to Walvis Bay.
- D’Anna said Askari Metals’ proximity to Andrada could potentially support future development without requiring major capex on the company’s own balance sheet.
Proactive: Welcome back to Proactive Investors. Ladies and gentlemen, I’m your host Kerry Stevenson. Today I have Gino D’Anna, executive director of Askari Metals. The ASX code is AS2. The company has the project in Namibia, and this has got some really exciting exploration expansion on the way, with about seven new targets. I want to find out what these seven new targets are all about and why this is important for shareholders to take note of. Welcome back, Gino. Good to see you.
Gino D’Anna: Thank you so much, Kerry.
Proactive: Talk to us about these seven new targets. I believe it’s across two of your licences, not just one, and it’s going to expand the pipeline ahead of some RC drilling that you’re doing next month. How did you come about this? I also want to find out about the assays. I think you’re going to be doing assays on site as well.
Gino D’Anna: That’s right. What we did was an in-house hyperspectral analysis. The study itself generated seven new prospective pegmatite targets across EPL 7345 and EPL 8535.
On EPL 7345, there are four new targets that have been generated: Eve, GP, MW and K10. Then there are three on EPL 8535: Tawni, Marshall and S1.
These standout targets have interpreted strike lengths. K10, for example, has an interpreted strike length of 3.1 kilometres. GP has an interpreted strike length of 2.4 kilometres, and Tawni has an interpreted strike length of 2.2 kilometres.
For us, what’s really important, and what this study has demonstrated, is the scalability attached to these other blind or buried pegmatites. We’ve already done trenching on other targets on EPL 7345, which is what we announced: SOP and K9. Those targets will validate and graduate to a drilling campaign.
As you pointed out, RC drilling on these targets starts next month. The targets we generated from this hyperspectral analysis will initially start with rock mapping and sampling, which has already been undertaken and is currently in process. They will then graduate to a trenching campaign before we expand our drilling pipeline and make these part of the next phase of drilling to take place this year as well.
Proactive: I just need to remind people about why you are excited about this area. It’s a polymetallic deposit and some critical minerals in there. Why do you think people should be paying attention to what you’ve got your hands on, and specifically these seven new targets?
Gino D’Anna: Strategically, the Uis project is very well located. We share licence boundaries with Andrada Mining, which operates the Uis Tin Mine right next door.
As you’ve indicated, it’s not just tin and it’s not just lithium. It’s a polymetallic pegmatite project. There’s tin, lithium, tantalum, rubidium and cesium. You’ve got an anchoring base metal in tin, where we’ve got a tightening supply market at the moment, and you’ve got the added exposure to critical minerals, which are very much in vogue and are relevant to supply chain securitisation among developing and developed economies.
You’ve got a perfect blend as far as the commodity point of view is concerned. Strategically, you’ve got a producer right next door to you, and from an infrastructure perspective, you’re 230 kilometres away from the deep-water port of Walvis Bay as well.
As far as the project is concerned, and as far as near-term development is concerned, it’s perfectly positioned. These seven targets, as I indicated, tick the box of scale and potential for getting a very significant global resource, and they’ll graduate into that drilling pipeline.
We’ll initially start with those four key targets and RC drilling next month. While we’re drilling, we hope to have the mechanised trenching gear on site as well, trenching these targets. As I said, rock mapping and sampling has already been undertaken. We’re waiting for the results to be announced, and then we can move forward to our trenching programs and hopefully continue to get that drill running without having to demobilise from site. We want to continue to push multiple streams of exploration.
Proactive: You also mentioned an operating mine next to you. Remind people about operating in Namibia as a jurisdiction. People are always looking at that sort of thing as well.
Gino D’Anna: Yes. Namibia is ranked either third or fourth as far as African operating jurisdictions. It’s a very safe, stable country, with a very secure government. Power infrastructure is plentiful and low cost.
From a port perspective, as I mentioned, Walvis Bay gives you access to European markets, the American market and Asian markets, so you’ve got diversification of customer channels there as well.
Having Andrada right next door is important. It is producing lithium, tin and tantalum at the moment, and is looking to put in a rubidium and cesium circuit onto its operation. You’ve effectively got a beneficiary right next door that can help you get into production without having to have the massive capex on your own balance sheet.
Proactive: I love that. So are you and Andrada friends?
Gino D’Anna: We are. We’ve been kind of dancing in the moonlight together for some time. It’s always been a case of Askari needing to do some more work on its projects and build up that drilling dossier and get those resources onto paper, so we can demonstrate to Andrada: here we are at the start, here’s what the pipeline looks like and here’s what the upside looks like.
We’re analogous with each other. The same pegmatites that Andrada is mining are the same pegmatites that we’re exploring. What we’re finding and what Andrada is mining are like for like. It’s not unexpected.
This is all about scale, and these types of targets definitely tick the box from a scale perspective. That is categorically why we’re so excited.
Proactive: This is just demonstrating, as you said before, 3.1 kilometres and 2.4 kilometres. It’s open. It’s growing. This could be a world-class deposit. Still early days, ladies and gentlemen. Not financial advice — you know the rules. We’ll look forward to more updates, especially as you get drilling next month. For now, thanks for coming and giving us an update on Proactive Investors.
Gino D’Anna: Thank you so much, Kerry.