Askari snaps up African lithium project

Askari Metals has inked a binding heads of agreement with private company LexRox Exploration Services to acquire a 90 per cent interest in its advanced Uis lithium, tantalum and tin project in Namibia, Africa. The advanced project bears visible spodumene mineralisation on its surface with previous rock chip assays delivering high-grade results up to 3.1 per cent lithium oxide, 3.2 per cent tin, 452 parts per million tantalum and 3387ppm rubidium.

An ongoing due diligence field campaign at the project has locked onto further altered spodumene mineralisation both on the surface and within historical tin and semi-precious stone workings. So far more than 150 samples have been collected and more than 80 pegmatites mapped with the explorer anticipating its rock chip assays within the next four weeks.

Multiple large workings have been visited during the due diligence work with several sites containing crushed mined ore on the surface. Sampling of the mined ore is currently underway.

A fully permitted 10,000m RC drilling program to pursue the project’s abundant surficial mineralisation is set to begin as early as next month.

Notably, the project is nearby an operating tin, tantalum and lithium mine owned by AfriTin Mining that hosts a mineral resource of 71.54 million tonnes grading 0.63 per cent lithium oxide, 0.134 per cent tin and 85ppm tantalum. It is also located about 230km by road to the deep water port of Walvis Bay on Africa’s western coast.

Askari Metals Executive Director, Gino D’Anna said: “The acquisition of the Uis Lithium-Tantalum-Tin Project signifies a transformational period for the Company as we expand our exposure to the battery metals sector. To acquire a project within 2.5km from an operating mine sharing the same geology and mineralised pegmatites is remarkable.”

The news of the acquisition comes hot on the heels of the explorer’s strategic deal struck with Shanghai-listed lithium-heavyweight Zhejiang Kanglongda Special Protection Technology. The new partner has a market cap of nearly US$1 billion and also holds a controlling interest of 51 per cent in Jiangxi Tiancheng Lithium Industry that specialises in extracting lithium sulphate solution. Zhejiang Kanglongda will assist the company with lithium chemical downstream processing techniques and opportunities in addition to providing access to capital for future development.

As part of the alliance, should Askari reach the mining stage, its Chinese partner will be provided with a preferred offtake position at market prices. Askari’s latest lithium land grab and partnership agreement is a continuation of its battery metals strategy that has seen the company acquire four other lithium projects in 2022 alone.

It would appear than the only thing greater than Askari’s appetite for new projects is the market’s hunger for more lithium with the International Energy Agency projecting demand for the battery metal by 2040 could be between 13 and 51 times higher than in 2021.

Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au