Deutsche Lithium – 50%-owned by Bacanora – has been granted an additional five-year exploration licence which covers 42 square kilometres and completely surrounds Zinnwald.
Historical drilling has shown that the Altenberg licence forms part of the same geological unit that hosts the historic lithium-tin-tungsten deposits at Zinnwald and Falkenhain, where Deutsche Lithium has existing mining and exploration licences.
Deutsche Lithium plans to investigate the deposits on the Altenberg Licence over the next five years and to combine its exploration and development with its Zinnwald and Falkenhain licences.
Zinnwald, where a feasibility study is on track to complete in the second quarter, currently has a resource of 142,240 tonnes of contained lithium.
But Bacanora bosses believe the new licence grant has the potential to increase the resource there.
‘Easy decision to apply for further acreage’
“Hosting deposits that have historically produced lithium and lying on the same geological play as other mines in the area, the Altenberg Licence is an excellent addition to our existing Zinnwald lithium project,” said chief executive Peter Secker.
“The decision to apply for further acreage that has the potential to extend the life of mine at Zinnwald was therefore an easy one.
“With the FS at Zinnwald on course to be completed in Q2, we will soon have a first independent valuation for Zinnwald which we are confident will far outstrip our current market capitalisation.”
Sonora financing on track
Zinnwald is one of two projects in Bacanora’s portfolio, with the other being Sonora in Mexico.
The company is working on completing the financing for that project in the second quarter of this year, which will fund the development of an initial 17,500tpa lithium carbonate operation.
A net present value of US$1.25bn has been assigned to Sonora and production is expected to get underway in the second half of 2021.
Bacanora shares surged 10.7% to 23.3p on the back of the news.