AMN - NAMIBIA: Montero to acquire lithium prospects

Montero Mining and Exploration has entered into a binding Heads of Agreement with Namib Base Minerals CC and Namibia Silica CC to acquire a 95% interest in the Uis Lithium-Tin Tailings Project in Namibia. The agreement provides Montero two months to complete legal and technical due diligence.

Under the terms of the agreement, Montero would earn a 95% interest in the project by committing to milestone payments totalling US$1.425 million. A payment of US$10,000 has been paid on execution of the agreement 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.

Montero will also issue C$125,000 of cash or shares to Lithium Africa 1 (LA1) for drilling and other data pertaining to the project four months from successful completion of the due diligence.

In 2016 LA1 completed 1,531 metres of aircore drilling in a 63-drill-hole program. The drill samples have been assayed for tin, lithium, tantalum and niobium, and confirmed the continuous lithium and tin mineralisation within parts of the project.

Preliminary analysis of the 2016 drill hole assay data shows that the samples range in lithium content from 0.07% to 0.73%, the tin content from 12 ppm to 1,752 ppm, and tantalum content from 1.5 ppm to 114 ppm. The drill hole assay data shows average values of 0.42% lithium, 523 ppm tin and 55 ppm tantalum.

The Uis mine operated from 1924 to 1990 with confirmed ore tonnage production mined between 1966 and 1981 of more than 10.657 million tonnes and previous mining adding a total potential tonnage of tailings of up to 20 million tonnes derived from approximate surface measurements and density estimates from the 2016 drill program.

A review of available surface and drill data is underway. Further work including tonnage and resource estimation, mineralogical investigations, and preliminary metallurgical test work is planned.

Montero’s president and CEO Dr Tony Harwood said: “Montero continues to secure the rights to tin assets with the potential to host significant tonnage for lithium in Namibia.

“The Uis tin mine ceased operations in the 1980s and did not exploit lithium. Recent drilling of the tailings confirmed the presence of lithium and tin. 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.”

The company has also entered a letter of intent with Namibian national Esegiel Xamseb to acquire an 80% interest in an exclusive prospecting licence in Namibia for exploration of lithium, base, rare and precious metals.  

The agreement provides Montero three months to complete legal and technical due diligence to its satisfaction and is also subject to regulatory approval.

Under the terms of the letter, Montero immediately earns an 80% interest in the property by committing to spend C$1 million in three years.

“The acquisition of a lithium exclusive prospecting licence, on the Omaruru Lineament, has favourable geology to host lithium-caesium-tantalum mineralisation," said Tony Harwood.

"The licence has not previously been explored for lithium and is in proximity to existing lithium producers.”

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