Osino partner drills 11 m of 0.95% Li2O at Omaruru
2023-03-31 09:31 ET - News Release
Mr. Heye Daun reports
OSINO PARTNER ANNOUNCES NEW LITHIUM DISCOVERY AND PHASE 1 DRILLING RESULTS AT OMARURU LITHIUM PROJECT, NAMIBIA
Osino Resources Corp. has provided an update on its majority-owned Omaruru lithium project in central Namibia following the completion of a phase 1 reverse circulation (RC) drill program by Prospect Resources Ltd. Osino entered into an earn-in and shareholder agreement with Prospect in Q4 2022 whereby Prospect can earn up to 51-per-cent and potentially up to 85-per-cent interest in the project (see Osino press release dated Sept. 30, 2022).
Omaruru is located 20 kilometres southeast of Osino's Twin Hills gold project for which a definitive feasibility study is anticipated to be delivered in Q2 2023. Located east of Karibib and spanning 175 square km, Omaruru is situated near several historical and current lithium mining operations, including Lepidico's Karibib lithium project located about 10 km to the southwest. Omaruru is accessible by road from the sealed B2 National Highway which links the capital Windhoek, 130 km the southeast, to the port at Walvis Bay, about 240 km farther southwest.
Heye Daun, Osino's president and chief executive officer, commented: "We are excited to receive excellent results generated by Prospect Resources' team at the Omaruru lithium project. The phase 1 drilling results confirm and expand the success of the early exploration and drilling programs completed by Osino between 2019 and 2021 and set the stage for a significant, maiden JORC compliant resource to be delineated at Omaruru later this year. Prospect is a world-class group with a track record for exploring and developing African lithium projects, evidenced by the team's previous success selling the Arcadia lithium project in Zimbabwe for approximately $378-million (U.S.) cash in 2022. Our earn-in agreement provides Osino shareholders with continued exposure to the growing scope and excellent upside potential of the Omaruru lithium project."
Project background
Omaruru contains more than 65 known and mostly zoned pegmatites which belong to the lithium-cesium-tantalum (LCT) family of rare element pegmatites. These pegmatites occur within an area known as the Karibib pegmatite belt, one of five major pegmatite districts in the Damara belt.
A number of pegmatites within the Karibib pegmatite belt have produced lithium in the past, including Lepidico's Karibib lithium project, which is focused on the Rubicon and Helikon pegmatites.
Historically, small-scale production from the Karlsbrunn and Brockmans pegmatites located on the project produced lithium minerals (mainly lepidolite, petalite, amblygonite and spodumene), as well as beryl. Exploration in the vicinity of the project has generally been for gold, and companies such as Anglo American and Helio Resources Corp. explored the area intermittently prior to 2015.
Osino undertook an initial evaluation of the lithium potential of the project from 2019 to 2021. This work included mapping, rock grab sampling and a 16-hole (1,942-metre) RC drill program in 2020. The drilling highlighted remaining potential at the Karlsbrunn pegmatite in particular, with a number of intersections of five m or more at grades in the range of 1 to 1.2 per cent of Li2O (lithium oxide). Other drilling and surface sampling indicated lithium mineralization associated with most of the other pegmatites on the project.
Karlsbrunn deposit phase 1 drilling program
Significant intersections returned from Prospect's phase 1 drilling program at the Karlsbrunn deposit include:
- Eight m at 99 per cent Li2O from six m;
- 11 m at 0.95 per cent Li2O from 51 m;
- 10 m at 0.88 per cent Li2O from 35 m;
- 10 m at 0.82 per cent Li2O from 15 m;
- 11 m at 0.80 per cent Li2O from 35 m.
These results show robust lithium grades and pegmatite widths across the deposit and are broadly in line with the initial drilling at Karlsbrunn completed by Osino in 2020.
Prospect also completed detailed sampling of several extensive underground adits at Karlsbrunn which pass laterally through the deposit at several locations. The adits were developed historically to extract petalite and gemstones from the pegmatite, including beryl. Assays from sampling of these adits are pending. These pending results, along with the surface RC drilling results outlined above, are expected to contribute to the estimation of a maiden JORC compliant mineral resource for the Karlsbrunn deposit later this year.
Brockmans deposit phase 1 drilling program
Prospect completed its maiden drilling at the Brockmans deposit, which is located just over four km northeast of the Karlsbrunn deposit. Assay results are highly encouraging with two adjacent holes completed in the southern zone evidencing a new discovery of continuous lithium mineralization.
Significant intersections returned from Prospect's phase 1 drilling program at Brockmans include:
- Six m at 1.30 per cent Li2O from 13 m within 14 m at 0.79 per cent Li2O from 13 m;
- Seven at 0.90 per cent Li2O from 17 m and eight m at 0.60 per cent Li2O from 28 m.
The results from this new drilling at Brockmans indicate a significant thickening of the pegmatite in the south, which is considered a key aspect for the zoning of lithium mineralization in the Karibib district (such as Karlsbrunn). Importantly, the limited drilling undertaken at Brockmans indicates significant prospectivity and scope for identifying larger tonnages of higher-grade lithium mineralization within the Omaruru project.
Metallurgical sampling
Prospect recently collected three 50-kilogram bulk samples of identified lithium mineralization from the Karlsbrunn, Brockmans and Hillside deposits. These samples are set to undergo early-stage metallurgical test work and evaluation in South Africa.
Geochemical soil sampling
Prospect completed detailed soil geochemical sampling at Omaruru over eight separate grids in January. Most assays for this work remain outstanding and will be reported separately once all data are received and interpreted.
Prospect's coming Omaruru exploration programs
Prospect expects to complete its phase 1 earn-in to Omaruru during Q2 2023. Coming programs during this period are expected to encompass infill and extensional RC drilling at the Brockmans deposit, limited diamond drilling for metallurgical test work purposes at Karlsbrunn, and potentially first-pass, short-hole, RC drilling of regional exploration targets identified from any cohesive geochemical and soil anomalies associated with LCT mineralization characteristics across the region (that is, elevated lithium-cesium-rubidium-beryllium values).
Earn-in agreement terms
Under the agreement, Prospect may earn-in to up to 40-per-cent interest in the project with a $1-million (U.S.) (phase 1) investment and a further 11-per-cent interest through a $560,000 (U.S.) investment (phase 2), totalling a 51-per-cent ownership in the project.
Phase 1 consists of a $560,000 (U.S.) cash payment to acquire 20 per cent, and a commitment to spend a further $440,000 (U.S.) on the project with a 12-month period, to earn an additional 20 per cent. Upon the completion of phase 1, Prospect may commit to a further $560,000 (U.S.) within a 12-month period for in-ground exploration to reach 51-per-cent ownership.
Upon the completion of phase 2 and having earned 51 per cent, development funds are to be contributed on a pro rata basis. If one party fails to contribute their pro rata share, their shareholding will be diluted. The minority shareholder will be diluted down to 15 per cent, at which point their interest shall be free carried until the completion of the DFS.
If Prospect chooses not to proceed after phase 1 or does not reach more than 50 per cent by the end of a 24-month period (or as extended by mutual consent) Osino will have the right to repurchase Prospect's interest for an agreed sum.
During the next phase of the agreement (phase 3), if Prospect's spending does not reach a minimum of $500,000 (U.S.) within the 12-month period following phase 2, either party will have the option to purchase the other party's interest for an agreed sum.
Osino will benefit from continuing exposure to the significant potential of the Omaruru project while remaining focused on the fast-tracked development of its wholly owned Twin Hills gold project and Ondundu gold project in Namibia.
Qualified person's statement