Tag Archives: Picasso Lithium Project

Cadence Minerals (AIM/AQX: KDNC; OTC: KDNCY) is pleased to announce that it has been advised by Castillo Copper (ASX/LON: CCZ) (“Castillo”) that it will be extending the 90-day option to acquire the Picasso and Litchfield Lithium Projects in prime regions in Western Australia (WA) and the Northern Territory (NT) respectively. This is primarily due to processing delays at the laboratories, due to the huge demand to process samples, which is extending timelines significantly.

For the full Castillo announcement, please click link here

Highlights

• CCZ is extending the 90-day option period to acquire the Litchfield and Picasso Lithium Projects¹:
  • More than 650 surface assays for the Litchfield Lithium Project¹, which is contiguous to Core Lithium’s (ASX: CXO) strategic Finniss Lithium Project (JORC compliant ore reserves: 7.4Mt @ 1.3% Li2O)², remain in process queues at the laboratory
  • Analysing and interpreting these assay results should potentially enable CCZ’s geology team to determine if lithium mineralisation is contiguous between the Lichfield and Finniss Lithium Projects¹
• Under the terms of the option agreement, the extension remains effective until 30 days after the receipt of the full suite of assay results.

Option Extended: 

Whilst reviewing available information for both projects has been positive, enhancing their potential to host lithium mineralisation, the assays are critical to enable due diligence to be finalised. This is especially the case for the Litchfield Lithium Project as it is contiguous to CXO’s Finniss Lithium Project which has JORC compliant ore reserves of 7.4Mt @ 1.3% Li₂O².

There are over 650 surface samples from four zones on the boundary with the Finniss Lithium Project. Analysing and interpreting these assay results should enable CCZ’s geology team to potentially determine if there is contiguous lithium mineralisation apparent and finalise due diligence.

Due to unprecedented demand, the timelines to process samples at laboratories have been extended significantly. CCZ’s geology team are in regular contact with the laboratories and hope to have clarity on when the assays will be received shortly. 

Simon Paull, Managing Director of Castillo Copper, commented: “The Board has advised the Vendor Group that it is extending the option period to acquire the Litchfield and Picasso Lithium Projects due to ongoing delays in receiving key assay results for both projects. Encouragingly, however, the Board is pleased with the due process undertaken to date and believes both assets have considerable potential to host lithium mineralisation. The Board looks forward to receiving these assays and concluding due diligence shortly thereafter.”

Cadence CEO Kiran Morzaria added: “We are both pleased to extend Castillo’s option to acquire the Litchfield and Picasso Lithium projects and to note the findings of the Castillo team and their belief that both assets have considerable potential to host lithium mineralisation. We look forward to further progress.”

Overview

Lithium Technologies Pty Ltd (“LT”) and Lithium Supplies Pty Ltd (“LS”), in which Cadence owns a 29% shareholding, eachown 50% of Synergy Prospecting Pty Ltd (“Synergy”) and have granted , as announced on 29 September 2021, Castillo a 90-day option toacquire 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 acquireLT, LS and Synergy at any time 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 toundertake 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)     CCZ ASX Release – 29 September & 20 October 2021

2)     CXO ASX Release – 21 September 2021 (Annual Report)

– Ends –

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 identified 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 notbased 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 fundingthereof) competitive advantages business prospects and opportunities. Such forward-looking statements reflect 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 basedupon what the Directors

believe to be reasonable assumptions. Cadence Minerals Plc cannot assure investors that actual results will be consistent with suchforward-looking statements.

Further to the announcement of 27 October 2021, Cadence Minerals (AIM/AQX: KDNC; OTC: KDNCY) is pleased to announce that Castillo Copper (ASX/LON: CCZ) (“Castillo”) has provided an update on the Picasso Lithium Project following the visit of its geology team who mapped and collected samples from the high-density corridor.

For the full Castillo announcement, please click link here.

Highlights

• A circa 10km zone of pegmatite occurrences was confirmed in the north-eastern part of the tenure, which significantly exceeds government mapping; and
• The observed pegmatites are potentially related to lithium mineralisation which enhances prospectivity of the tenure’s north-eastern quadrant
• Due diligence for the Litchfield Lithium Project is progressing with the laboratory expected to return assays within 2-3 weeks

Field Trip Findings: 

Castillo’s geology team undertook considerable mapping across the Picasso Lithium Project, though much of the time was focused on the tenure’s north-east quadrant where the high-density pegmatite corridor is located. Encouragingly, a circa 10km zone of pegmatite occurrences was confirmed in the tenure’s north-east quadrant which is the best exposed part of the Picasso Lithium Project. Notably, the pegmatites potentially host lithium mineralisation though this is subject to further investigation.  There are several areas of outcropping basement where granite is the dominant rock type. Interestingly, there is potential to discover further pegmatites across the tenure as there is significant shallow sand cover. 

Simon Paull, Managing Director of Castillo Copper, commented: “The geology team’s visit to the Picasso Lithium Project delivered encouraging news, confirming that a 10km zone of pegmatites is apparent in the tenure’s north-east quadrant. The Board’s preliminary conclusion, based on due diligence undertaken to date, is the Picasso Lithium Project is prospective for lithium mineralisation and delivers significant incremental exploration potential.”

Cadence CEO Kiran Morzaria added: “We are pleased to note the progress and initial conclusions announced today by Castillo following the field trip work undertaken at the Picasso Project. We look forward to further progress.” 

Overview

Lithium Technologies Pty Ltd (“LT”) and Lithium Supplies Pty Ltd (“LS”), in which Cadence owns a 29% shareholding, each own 50% ofSynergy Prospecting Pty Ltd (“Synergy”) and have granted , as announced on 29 September 2021, Castillo a 90-day option to acquire100% 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 acquireLT, LS and Synergy at any time 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 toundertake 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.

– Ends –

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 identified 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’ currentexpectations 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) competitiveadvantages business prospects and opportunities. Such forward-looking statements reflect 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 otherregulatory 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 beconsistent with such forward-looking statements

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 (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% Li₂O².

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 tenure¹
• 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 samples¹are due to be received in coming weeks
• The Picasso Lithium Project is proximal to Liontown Resources’ (ASX: LTR) Buldania Project²and 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 diligience 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 tenure¹.

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 samples¹ 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 acquireLT, 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 toundertake 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 –

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 identified 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 reflect 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.