TSX.V-quoted Montero Mining & Exploration has entered a binding Heads of Agreement with Namib Base Minerals and Namibia Silica to acquire a 95% interest in the Uis lithium-tin tailings project in Namibia.
The agreement provides Montero Mining & Exploration two months to complete legal and technical due diligence to its satisfaction and is also subject to regulatory approval.
Under the terms of the Heads of Agreement (HOA), Montero Mining & Exploration would earn a 95% interest in the project by committing to milestone payments totaling US$1.425 million to the owners.
A payment of $10 000 has been paid on execution of the HOA and $40,000 shall be paid on successful completion of due diligence, a further payment of $275,000 shall be paid within six months and the remainder as staged milestone payments through to production.
Montero Mining & Exploration will also issue C$125,000 of cash or shares in Montero to Lithium Africa 1 (LA1) for drilling and other data pertaining to the project four months from successful completion of the due diligence.
In 2016 LA1 completed 1 531 metres of air-core drilling in a 63-drill-hole program.
The drill samples have been assayed for tin, lithium, tantalum and niobium and confirmed the continuous lithium and tin mineralization within parts of the project.
Preliminary analysis of the 2016 drill hole assay data shows that the samples range in lithium content from 0.07 % to 0.73 % Li2O, the tin content from 12 ppm to 1 752 ppm SnO2, and tantalum content from 1.5 ppm to 114 ppm Ta2O5.
The drill hole assay data shows average values of 0.42% lithium (Li2O), 523 ppm tin (SnO2) and 55 ppm tantalum (Ta2O5).
“Montero Mining & Exploration continues to secure the rights to tin assets with the potential to host significant tonnage for lithium in Namibia," comments Montero president and CEO, Dr. Tony Harwood.
"The Uis tin mine ceased operations in the 1980’s and did not exploit lithium. Recent drilling of the tailings confirmed the presence of lithium and tin with average values of 0.42% lithium (Li2O) and 523 ppm tin (SnO2) from the drill data.
"There is an estimated potential of up to 20 Mt of tailings. Renewed interest in lithium to meet future battery demand for the burgeoning electric car battery market has focused Montero Mining & Exploration to re-examine the potential of tin districts in LCT pegmatites to host significant tonnages of lithium to meet the expected demand”.
The Uis mine operated from 1924 to 1990 with confirmed ore tonnage production mined between 1966 and 1981 of 10,657,075 Mt (ISCOR 1982, US Bureau of Mines, 1992) and previous mining adding a total potential tonnage of tailings of up to 20 Mt derived from approximate surface measurements and density estimates from the 2016 drill program.