Six Sigma moves quickly to drill high priority lithium target in Zimbabwe
Mining & Resources
Special report: Six Sigma Metals is wasting no time in getting on the ground in Zimbabwe to drill a high priority lithium target at the Shamva project it is planning to acquire.
Just a week after the company (ASX:SI6) announced it had struck a more favourable deal for the planned acquisition of lithium and vanadium projects in Zimbabwe, it has started its three-hole, 300m drilling program.
Six Sigma is drilling a target called “Bonnyvale” to identify the thickness of lithium mineralisation and see if it continues at depth.
The company previously completed an environmental impact assessment report for the Bonnyvale target so it could begin drilling.
Over 60 rock chip samples taken previously returned grades of over 2 per cent. Anything over 1 per cent can be considered high-grade in lithium mining.
This has made Bonnyvale a high priority target for Six Sigma.
Importantly for Six Sigma, it has the flexibility to expand the current drilling program pending initial results.
Drilling is due to be completed by the end of July.
De-risking the acquisition
Six Sigma previously executed an option agreement with Zimbabwe-based miner Mirrorplex to acquire up to an 80 per cent interest in the Shamva lithium and Chuatsa vanadium and titanium projects.
The company has now successfully negotiated a new deal that further de-risks the investment decision and speeds up drilling.
Instead of having to wait until due diligence is completed, Six Sigma can begin drilling straight away and have the results in hand before it needs to make a final decision on the acquisition.
Six Sigma also now only has to issue half the original amount of shares and will instead issue “out of the money” options.
Out of the money is a term used to describe a call option with a strike price that is higher than the market price of the underlying asset.
Loch Ness sampling
As part of the recent sample program, 75 surface rock samples were taken from the Loch Ness target and are currently being assayed.
Like the Bonnyvale target, Loch Ness is showing a prominent pegmatite body with historical trenches.
Pegmatites are rocks formed from lava or magma and are the primary source of lithium.
Six Sigma is expecting to have the results in hand in August.
This special report is brought to you by Six Sigma Metals.
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