Proven mine finder Prospect unearths more hidden lithium drill targets at Omaruru

Soil sampling outlines lithium pegmatite pathfinder signatures in new areas at Omaruru project
Prospect expects to complete Phase 2 earn-in to Omaruru during Q4 2023
Assay results and interpretation of shallow drill programme will inform deeper reverse circulation (RC) programme with the aim of delivering a resource during first half of ’24

Special Report: Detailed soil programmes at the Omaruru lithium project, 20km east of the regional centre of Karibib in central Namibia, have outlined new prospects in areas containing pathfinder signatures for LCT pegmatites.

Prospect Resources (ASX:PSC) is a proven mine finder, having sold the 72.7Mt Arcadia project in Zimbabwe to Huayou Cobalt in mid-2022 for about US$422m in cash.

It is looking to repeat that success at Step Aside – just 8km from Arcadia — and Omaruru in Namibia. Recent results continue to be very encouraging across both assets.

Earlier this week PSC reported a highlight drill hit of 33m at 1.18% Li2O from 81m, including 24m at 1.41% Li2O from 88m, from the WinBin discovery at Step Aside.

Meanwhile, the company believes 40% owned Omaruru (moving up to 51%, and potentially 85%) offers a great location and the potential to establish a resource quickly with walk-up drill targets and a great operating environment in Namibia, a tier one mining jurisdiction.

Soil sampling delivers new targets

Recent field mapping and geochemical soil sampling activities uncovered previously unidentified pegmatites at Omaruru with substantial overlain geochemical anomalism.

The programme was completed over four separate grids with all 1,241 sample assays having now been received and evaluated.

PSC says soil geochemical results returned from the new Karlsbrunn SE prospect sampling were particularly encouraging and showed strongly anomalous lithium and LCT pegmatite pathfinder elements aligned with the mapped deposits in that region.

Even more compelling, the coherent 500m long, 150m wide lithium geochemical anomaly in the southern central part of the grid represents a new scout RAB drilling target in this region, and strongly supports the ongoing regional geological mapping and sampling programmes in progress at Omaruru.

Untapped potential at Omaruru

“What our recent field mapping and geochemical soil sampling activities demonstrate is that there are previously unidentified pegmatites at Omaruru with substantial overlain geochemical anomalism,” Prospect MD & CEO Sam Hosack said.

“This not only provides key targets for further scout discovery drilling at Omaruru, but also demonstrates the additional potential that might lie in the largely untapped northern parts of the Omaruru licence.

“We look forward to RAB drill testing of the newly identified targets, and particularly the sizeable new zone unearthed at Karlsbrunn SE.

“The substantial surface footprint and strong concentration of some of these geochemical anomalies is very encouraging for the delineation of further discoveries in the short term at Omaruru.”

What’s next?

PSC expects to complete its Phase 2 earn-in to Omaruru during Q4 CY2023 and earn a 51% stake in Richwing, the Namibian domiciled company that holds the Omaruru asset.

The assay results and geological interpretation of the imminent RAB programme will inform the generation of a more detailed and deeper RC drilling programme at Omaruru, with the aim of delivering a maiden lithium resource during the first half of CY2024.

The company is cashed up with $23.7m in the bank at the end of September.

This article was developed in collaboration with Prospect Resources, 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.