HomeEast AfricaAuroch Minerals acquires lithium project in Tanzania

Auroch Minerals acquires lithium project in Tanzania

Auroch sold the Manica gold project in Mozambique to Xtract Resources in November 2014 and has since then not had any additional assets.

This new portfolio represents an exciting new period for Auroch, which has made the strategic decision to couple its gold expertise with opportunities in the lithium – tantalum sector due to the strong outlook for lithium from the burgeoning battery market.

As part of its due diligence Auroch has had a senior geologist on site for 10 days of mapping and sampling. This review has confirmed the presence of numerous outcropping, lithium bearing pegmatites within the project area.

Hombolo tenure

The Hombolo lithium project is approximately 40 km north east of the Tanzanian capital Dodoma.

The project area is adjacent to the Liontown Resources Mohanga lithium-tantalum project where Liontown has recently announced grades up to 5.2% Li2O and 0.11% Ta in pegmatites that intrude the regional metamorphic basement rocks (refer LTR announcement 18/12/2015).

Auroch has secured the rights to the Hombolo lithium project through a deal to acquire a ground package that comprises:

  • over 1 700 km2 including two approved prospecting licences (PLs) immediately adjacent to known mineralisation,
  • eight regional prospecting licences still in application (PLAs) and
  • three granted primary mining licences (PMLs) and eight applications for primary mining licences (together the PMLs) that are part of an excision within the Liontown project.

Current financial position

Auroch is well funded with A$10.7 million in cash, marketable securities and receivables.

As at 23 May 2016, the cash position totalled A$3.5 million and the value of shares in Xtract Resources totalled A$3.7 million.

In late June 2016, a further payment of A$3.45 million is due from Xtract Resources, composed of a minimum cash amount of A$1.75 million and further shares in A$1.65 million (note AOU can elect to receive this payment in cash).