TIDMKDNC
RNS Number : 4274Q
Cadence Minerals PLC
27 October 2021
Cadence Minerals Plc
("Cadence Minerals", "Cadence")
Castillo Copper (ASX/LON: CCZ) to undertake comprehensive site
visit to test all known pegmatites at Picasso Lithium Project.
Further to the announcements of 29 September 2021, 7 October
2021 and 20 October 2021, Cadence Minerals (AIM/AQX: KDNC; OTC:
KDNCY) is pleased to announce that the Castillo Copper's (ASX/LON:
CCZ) ("Castillo") geology team will undertake a field trip to the
Picasso Lithium Project, near Norseman in Western Australia.
For the full Castillo announcement, please link here
This is a lithium rich region, as the Mt Marion and Bald Hill
Mines are located within 120km to the north-west of the tenure.
Moreover, the Picasso Lithium Project is proximal to LTR's Buldania
Project which has a JORC compliant resource at 14.9Mt @ 0.97% Li(2)
O(2) .
Highlights
-- Geology team will visit the Picasso Lithium Project shortly
to gather more geological evidence - over a wide area - to verify
if known / newly discovered pegmatites host lithium
mineralisation
-- The focus area is the high-density corridor that hosts most
of the 69 government mapped pegmatites on the eastern boundary,
which is coincident to historical lithium occurrences at surface,
coupled with selected outcropping targets seen elsewhere across the
tenure(1)
-- The scope for the field trip is comprehensive and includes
undertaking a drone survey to identify new granite / pegmatites
targets; visit and collect samples from prospective zones;
determine potential for lithium mineralisation; and update
geological maps
-- Once complete, the team should have ample evidence to
finalise the due diligence as significant historical data has
already been reviewed, while more than 30 rock-chip samples(1) are
due to be received in coming weeks
-- The Picasso Lithium Project is proximal to Liontown
Resources' (ASX: LTR) Buldania Project(2) and is mostly situated on
crown land, which makes access a relatively straight forward
process
Castillo's Managing Director Simon Paull commented: "With the
global lithium market showing continued strength, the Board has
decided to send a team to site to collect more data points to
advance the case for the Picasso Lithium Project. Whilst there is
compelling historical evidence already and surface assays pending,
the Board is keen to fully map and test all potential targets for
lithium mineralisation within the tenure to hasten closing out due
diligence."
Cadence CEO Kiran Morzaria added: "Further to the progress made
by Castillo in regard to the due diligence at Litchfield, we are
pleased that Castillo have also committed to send a geology team to
fully assess the potential at the Picasso Lithium Project. We look
forward to further progress."
Field Trip - Picasso Lithium Project
Castillo's geology team will visit the Picasso Lithium Project
shortly to collect more evidence to ascertain if known and newly
discovered pegmatites host lithium mineralisation. The main focus
zone is on the eastern boundary which comprises the high-density,
government mapped, pegmatite corridor that is coincident with known
lithium surface occurrences.
In addition, the team expect to survey pegmatite outcropping
along the western boundary which is more wide-spread and scattered.
Overall, according to government mapped data, there are 69 known
pegmatites within the tenure(1) .
Scope
The geology team have been set a broad scope to collect as much
incremental evidence as feasible during the field trip to determine
the extent lithium mineralisation is apparent within pegmatites
across the tenure. The key tasks comprise:
-- Conducting a drone survey across a significant area of the tenure;
-- Identify new granite / pegmatites from the drone survey and note dimensions;
-- Visit newly identified granite / pegmatite locations, conduct
geological mapping and identify underlying mineralisation; and
-- Collect as many rock-chip samples as possible from newly
identified pegmatites >1m wide and record XRF readings, if
any.
Once this exercise is complete, the geology team should have
sufficient evidence to finalise the due diligence. To date,
significant historical data and geological reports have already
been reviewed, while more than 30 rock-chips samples(1) are due
back from the laboratory in coming weeks.
Overview
Lithium Technologies Pty Ltd ("LT") and Lithium Supplies Pty Ltd
("LS"), in which Cadence owns a 29% shareholding, each own 50% of
Synergy Prospecting Pty Ltd ("Synergy") and have granted , as
announced on 29 September 2021, Castillo a 90-day option to acquire
100% of the outstanding shares of LT and LS and by implication 100%
of Synergy.
During this 90-day period, Castillo will be conducting due
diligence on all three entities to ensure the underlying assets are
in good standing and there are no material adverse issues. Under
the terms of the option agreement, Castillo can exercise its right
to acquire LT, LS and Synergy at anytime during the 90-day
period.
Castillo Copper Limited is an Australian-based explorer
primarily focused on copper across Australia and Zambia. The group
is embarking on a strategic transformation to morph into a mid-tier
copper group underpinned by its core projects:
-- A large footprint in the in the Mt Isa copper-belt district,
north-west Queensland, which delivers significant exploration
upside through having several high-grade targets and a sizeable
untested anomaly within its boundaries in a copper-rich region.
-- Four high-quality prospective assets across Zambia's
copper-belt which is the second largest copper producer in
Africa.
-- A large tenure footprint proximal to Broken Hill's
world-class deposit that is prospective for
zinc-silver-lead-copper-gold.
-- Cangai Copper Mine in northern New South Wales, which is one
of Australia's highest grading historic copper mines.
The primary assets of Synergy, which are wholly-owned, comprise
the Litchfield Lithium Project (EL31774) in NT and Picasso Lithium
Project (E63/1888) in WA. In addition, Synergy has an application
in NT - EL31828 - known as the Alcoota Lithium Project, which
comprises ground proximal to Alice Springs. Castillo will need to
undertake further geological due diligence on this application.
LT and LS also hold applications for six lithium properties in
San Luis Province, Central Argentina. Again, Castillo will need to
undertake further geological due diligence on these
applications.
Further details on these assets and all the applications and
permits are contained on our website here
Option terms & consideration
The terms of the 90-day option are as follows:
-- A$50,000 non-refundable deposit in cash on formally granting
the option that will go directly to Synergy for working capital
purposes.
Upon exercising the option within the 90-day period, the binding
consideration terms are as follows:
-- A$1m script payment in CCZ shares will become payable to the
Vendor Group based on the 14-day WVAP calculated from the date of
which the option agreement is announced to the ASX. Note, the
Vendor Group will be subject to a 6-month voluntary escrow period
for 50% of the shares and 12-months for the 50% balance from the
date of settlement. In addition, both parties agree to sign off on
a binding term sheet.
Incremental consideration terms are applicable if the following
milestones are achieved:
-- A$1m script payment in CCZ's shares to the Vendor Group based
on the 14-day WVAP if two drill-holes produce assayed intercepts
greater or equal to a true width of at least 10m @ 1.3% Li2O.Note,
the two holes will be at least 100m apart, but not greater than
200m.
-- A$1m script payment in CCZ's shares to the Vendor Group based
on the 14-day WVAP if a JORC compliant total inferred resource of
at least 7Mt @ 1.3% Li2O is modelled by SRK Consulting.
-- In the event of commercial mining operations commencing a 2%
NSR will be payable to the nominees of the facilitator.
References
1. Satellite imagery from Geological Survey of Western Australia. Available at: https://www.dmp.wa.gov.au/Geological-Survey/Geological-Survey-262.aspx and CCZ ASX Release - 4 October 2021
2. LTR ASX Release - 2 August 2021 and CCZ ASX Release - 29 September 2021 & 4 October 2021
- Ends -
For further information:
Cadence Minerals plc +44 (0) 7879 584153
Andrew Suckling
Kiran Morzaria
WH Ireland Limited (NOMAD & Broker)
James Joyce +44 (0) 207 220 1666
Darshan Patel
Novum Securities Limited (Joint Broker)
Jon Belliss +44 (0) 207 399 9400
Qualified Person
Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the
information contained in this announcement. Kiran holds a Bachelor
of Engineering (Industrial Geology) from the Camborne School of
Mines and an MBA (Finance) from CASS Business School.
Forward-Looking Statements:
Certain statements in this announcement are or may be deemed to
be forward-looking statements. Forward-looking statements are
identi ed by their use of terms and phrases such as "believe"
"could" "should" "envisage" "estimate" "intend" "may" "plan" "will"
or the negative of those variations or comparable expressions
including references to assumptions. These forward-looking
statements are not based on historical facts but rather on the
Directors' current expectations and assumptions regarding Cadence
Minerals Plc's future growth results of operations performance
future capital and other expenditures (including the amount. nature
and sources of funding thereof) competitive advantages business
prospects and opportunities. Such forward-looking statements re ect
the Directors' current beliefs and assumptions and are based on
information currently available to the Directors. Many factors
could cause actual results to differ materially from the results
discussed in the forward-looking statements including risks
associated with vulnerability to general economic and business
conditions competition environmental and other regulatory changes
actions by governmental authorities the availability of capital
markets reliance on key personnel uninsured and underinsured losses
and other factors many of which are beyond the control of Cadence
Minerals Plc. Although any forward-looking statements contained in
this announcement are based upon what the Directors believe to be
reasonable assumptions. Cadence Minerals Plc cannot assure
investors that actual results will be consistent with such
forward-looking statements.
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