Johannesburg – Dual listed junior lithium miner Tawana
Resources says it has completed due diligence on Bald Hill Mine.
In a statement issued on Tuesday, the company says,
subject to approval by its shareholders at its General Meeting, to be held on
December 23, it has decided to exercise its option to acquire Lithco. This will
result in Tawana becoming the joint venture partner of Alliance Mineral Assets in
the Bald Hill Lithium and Tantalum Project, it explains.
Tawana says Lithco had entered into a farm-in and JV with
Singapore-listed AMAL for the purpose of exploration and joint exploitation of
lithium and other minerals at the Bald Hill Mine, which includes a processing
plant, existing infrastructure and permitted mining licences.
“The acquisition of Lithco potentially allows Tawana to
become an Australian spodumene producer in the second half of 2017.”
Tawana says there are extensive spodumene pegmatites in
wide-spaced drilling, which indicates significant tonnage potential, over and
above existing tantalum reserves.
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Its research also found high spodumene recoveries and
high concentrate grades from initial metallurgical test-work.
As a result, it says, there are early indications of a
highly profitable operation and rapid payback period at the Bald Hill Mine.
MD Mark Calderwood says the “Bald Hill Mine represents a
unique opportunity for the company to quickly enter the spodumene supply chain
with modest capital expenditure at a time when demand is strongly outpacing
uncommitted supply. Engineering in the New Year will focus on fast-tracking completion
of the feasibility focused on installation of a DMS circuit and rescheduling of
the mine plan after a revised reserve estimate covering both lithium and
tantalum.”
The Bald Hill Project area is located 50km south east of
Kambalda in the Eastern Goldfields of Western Australia.
BUSINESS REPORT