The mining lease covers 7.4km2 and to date has been primarily explored for gold. Pic via Getty Images.
CuFe picks up more land in established WA lithium province
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CuFe has acquired more exploration tenure in the emerging Southern Yilgarn lithium belt in WA via a lithium and rare earth mineral rights deal.
The addition of this tenure gives the company over 12km of strike length exposure to a 30km corridor that is proven to host Lithium-Caesium-Tantalum (LCT) bearing pegmatites.
The mining lease (M15/1893) covers7.4km2 and is just 30km from Mineral Resources (ASX:MIN) Mt Marion mine.
It’s also 2km along strike from CuFe’s (ASX:CUF) recently acquired tenement E15/1495 and immediately along strike from Marquee Resources (ASX:MQR) West Spargoville lithium project.
The Southern Yilgarn belt also hosts known spodumene deposits and projects including the Bald Hill mine, the Pioneer Dome project and the Manna lithium project.
Loads of lithium activity in the region
To date, the mining lease has been primarily explored for gold, and this acquisition takes the form of a rights swap with CuFe providing the vendor with gold rights over E15/1495 as consideration.
“We are pleased to secure these rights in a common-sense way that enables each company to focus on their commodities of choice and maximise use of the ground,” executive director Mark Hancock said.
“There is a lot of activity in the region, as illustrated by the recent acceleration of Mineral Resources farm-in to the Marquee Resources tenure which surrounds our ground so that encourages us that we are in the right region.
“We look forward to the outcome and results of the planned field work across this tenement package.”
Initial fieldwork already underway
Under the terms of the agreement, CuFe acquires rights to lithium and rare earth related minerals over the mining lease from Rosa Management and in return CuFe assigns Rosa rights to gold on the recently acquired E15/1495.
The parties each assume the obligations to pay a $300,000 milestone payment payable to the previous owner in the event production occurs in the future from the tenure and a 1% gross sales royalty.
Completion of the transaction is expected to occur within 30 days.
Initial visits to the site have occurred, with more detailed field work including detailed mapping and rock chip sampling planned across both tenements over the next 2-3 weeks.
This article was developed in collaboration with CuFe Limited, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
