Africa-focused explorer Montero Mining & Exploration Ltd (CVE:MON) is set to acquire a 95% interest in the Uis lithium-tin tailings project in Namibia.
It has struck a binding Heads of Agreement (HOA) with owners Namib Base Minerals CC (NBM) and Namibia Silica CC over the project, where the Uis mine operated from 1924 to 1990.
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Between 1966 and 1981, a whopping 10.6mln tonnes of ore was mined and previous mining adding a total potential tonnage of tailings of up to 20mln tonnes derived from approximate surface measurements and density estimates from the 2016 drill programme.
Preliminary analysis of 2016 drill assay data showed samples range in lithium content from 0.07 % to 0.73 % Li2O (lithium oxide), the tin content from 12 ppm (parts per million) to 1,752 ppm, and tantalum content from 1.5 ppm to 114 ppm.
“Montero continues to secure the rights to tin assets with the potential to host significant tonnage for Lithium in Namibia," said Dr Tony Harwood, president and chief executive of Montero.
"The Uis tin mine ceased operations in the 1980’s and did not exploit lithium. Recent drilling of the tailings confirmed the presence of lithium and tin with average values of 0.42% lithium (Li2O) and 523 ppm tin (SnO2) from the drill data.
"There is an estimated potential of up to 20 million tonnes of tailings. Renewed interest in lithium to meet future battery demand for the burgeoning electric car battery market has focused Montero to re-examine the potential of tin districts in LCT pegmatites to host significant tonnages of lithium to meet the expected demand.”
Under the terms, Montero would earn a 95% interest by committing to milestone payments totalling US$1.425mln to the owners.
A payment of US$10,000 has already been paid and US$40,000 shall be paid on successful completion of due diligence, a further payment of US$275,000 shall be paid within six months and the remainder as staged milestone payments through to production.
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Montero will also issue C$125,000 of cash or shares in Montero to Lithium Africa 1 (LA1) for drilling and other data four months from successful completion of due diligence.
Yesterday (Monday) the firm said it had acquired an 80% interest in prospecting licence 6162 for lithium, base, rare and precious metals in Namibia.
The project is 20 km north of the town of Karibib, which is 211 km from Walvis Bay, Namibia’s largest commercial deep-water port.
Shares on Tuesday were unchanged at C$0.295.