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Mining industry

Andrada Mining Initiates Exploration Drilling at Lithium Ridge Project

Strategic Insights

— 1 min read

Andrada Mining Limited has announced the commencement of exploration drilling at the Lithium Ridge project in collaboration with SQM Australia (Pty) Ltd, marking a significant step towards unlocking Namibia's lithium potential. The drilling activity is part of a three-stage earn-in agreement between the two entities, with SQM contributing up to $7 million for exploration and aiming to acquire a 30% stake at the project level, with a potential investment of up to $40 million across all stages. The project's promising lithium targets have already yielded historical findings of up to 2.13% lithium oxide concentrations along a six-kilometer mineralised ridgeline.

Key Takeaways:

  • Andrada Mining Limited has initiated exploration drilling at the Lithium Ridge project in collaboration with SQM Australia (Pty) Ltd, marking a significant advancement in the exploration of Namibia's lithium resources.
  • The drilling activity is part of a three-stage earn-in agreement between the two entities, with SQM contributing up to $7 million for exploration and aiming to acquire a 30% stake at the project level, with a potential investment of up to $40 million across all stages.
  • The project's priority lithium targets have features high-resolution geological mapping and sampling, which have identified new mineralised pegmatites featuring visible spodumene mineralisation.
  • Historical findings at the project have reported lithium oxide concentrations as high as 2.13% along a six-kilometer mineralised ridgeline.
  • The collaboration between Andrada Mining and SQM highlights Namibia's expanding role in the global supply chain of critical minerals.
  • The project's development is expected to be expedited with the integration of new geological mapping and sampling, further reinforcing confidence in the project's scale and quality.

Statistics:

  • The exploration effort includes 14,000 meters of Orientated Diamond Drilling focusing on priority lithium targets.
  • SQM is contributing up to $7 million for exploration and aiming to acquire a 30% stake at the project level.
  • The potential investment by SQM across all stages is up to $40 million.
  • Historical findings have reported lithium oxide concentrations as high as 2.13% along a six-kilometer mineralised ridgeline.
  • The project features high-resolution geological mapping and sampling, which have identified new mineralised pegmatites featuring visible spodumene mineralisation.

Sources:

  • Andrada Mining Limited (AIM: ATM, OTCQB: ATMTF)
  • Johannesburg Stock Exchange (JSE)
  • Sociedad Quimica y Minera de Chile SA's subsidiary, SQM Australia (Pty) Ltd

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