brazilian PROJECTS HUB
Caraíbas and Sidrônio Lithium Projects
(Minas Gerais, Brazil)
Note: This is currently a Proposed Acquisition and is subject to shareholder approval at the Company’s upcoming Extraordinary General Meeting.
See ASX Announcement 22 April 2024 for full details of Proposed Acquisition
Project Highlights
LOCATION
Projects located in the prolific Lithium Valley region of Minas Gerais 20km south of Latin Resources’ (ASX: LRS) Colina project
Pegmatites Present
Multiple pegmatites have been identified at the Caraíbas Project, with peak lithium rock chip assay results grading up to 0.53% Li2O (lepidolite)
POSITIVE ASSAY RESULTS OF INDICATOR MINERALS
Significant tantalum (1,245ppm), rubidium (1,175ppm) and caesium (1,455ppm) rock chip assay results are considered positive exploration indicators
strong geophysical trends
Strong aeromagnetic geophysical trends correlate with regional mineralised trends
STRONG REGIONAL GEOLOGY FOR LITHIUM
Projects lie within geology of the Salinas Formation which hosts other lithium Resources in the region
VENDOR CONFIDENCE
Proposed Transaction based on 5Mt, 10Mt and 30Mt Resource milestones presenting significant upside at both a project and company level demonstrating vendor confidence
SEASONED FIELD TEAM
Access to a seasoned field team that holds significant local IP, providing invaluable fieldwork expertise and insights
Caraíbas and Sidrônio Projects
The Projects are located in the Eastern Brazilian Pegmatite Province that encompasses approximately 150,000 km2, stretching from Bahia state to Rio de Janeiro state. The Caraíbas Project consists of five (5) separate tenements covering 1,733 Ha and the project area contains a series of albite and muscovite rich pegmatites.
Aeromagnetic data shows the tenements are located along regional structures and shear zones which are analogous to the trends present at Latin Resources’ (ASX: LRS) Colina deposit. The Caraíbas Project is located approximately 20km to the south in the same Salinas geological formation.
The Sidrônio Project consists of two (2) tenements covering 1,638 Ha, strategically located adjacent and along strike to the south from the Caraíbas Project. Aeromagnetic data shows the tenements are located along similar interpreted structural trends that may potentially be conduits for mineralisation.
Strong Geophysics
– Highly Prospective Structural Trends that Host Lithium Mineralisation
Multiple prospective geophysical trends have been identified through interpretation of publicly available aeromagnetic data from the Servico Geologico do Brasil (Geological Service of Brazil) which correlates with the parallel mineralised corridor that hosts Latin Resources’ (ASX: LRS) Colina deposit. These trends will form the basis of further on-ground mapping, reconnaissance, and sampling across the tenements with a view to defining drill targets.
The Salinas Formation
– Host to Proven and Significant Lithium Deposits
Both Projects cover prospective Salinas Formation geology which is thought to provide adequate rheological conditions suitable for the emplacement of late hydrothermal fluids. In similar geological settings, proximal to S-type granites, the Salinas Formation is known to host fertile lithium mineral bearing pegmatites and are known to be favourable and form part of the genetic model for the creation of lithium-caesium-tantalum (LCT) deposits.
Strong Early-Stage Works Have Identified Lithium Bearing Minerals
Three rock chip samples were taken from the Caraíbas project with peak assay results of 0.53% Li2O, 1,245 ppm tantalum, 1,175 ppm rubidium and 1,455 ppm caesium. These results are considered encouraging and support the thesis that pegmatites in the project areas might have favourable geochemistry and fractionation conditions. Elevated tantalum levels are considered a good indicator of potential for adequate fractionation conditions
A) Photograph of sample BLR237 showing lepidolite minerals (purple) within pegmatite sample.
B) Photograph of sample VLR1269 showing lepidolite minerals (purple) within pegmatite sample.
C) Photographic example of workings located within the larger Caraíbas tenement area (805118mE, 8193908mN).
The Relevance of Brazil as a Significant Lithium Producing Country
Brazil has emerged in recent years as a significant lithium mining region with Latin Resources (ASX: LRS) Colina lithium project and Signa Lithium’s (NASDAQ: SGML) Grota do Cirilo project being the most advanced and largest scale lithium projects in Brazil. The Eastern Brazilian Pegmatite Province in Minas Gerais, which hosts the Company’s proposed acquisitions, is home to 100% of Brazil’s official lithium reserves.
Mining is a key driver of the economy in both Minas Gerais and Brazil with a strong history of mining and being the world’s second largest producing iron ore region. The region is also home to multiple other commodities and currently has in the region of 300 operating mines.
Other Operators in the Lithium Valley
– Something to Aspire To
Latin Resources’ (ASX: LRS) Colina project hosting 70.3Mt @ 1.27% Li20
Sigma Lithium’s (NASDAQ: SGML) Grota do Cirilo project hosting 108.9Mt @ 1.41% Li20
Lithium Ionic Corp. (TSXV: LTH) Bandeira project hosting 29.5Mt @ 1.37% Li20. A Pre-Economic Assessment (PEA) demonstrated a IRR of 121% and NPV8 post tax of C$1.6 Billion.