Auroch Minerals the developers of Karibib Lithium project has signed an option and joint venture deal for EPL 5751, as part of efforts to grow the project.
EPL5751 is one of the company’s five existing Exclusive Prospecting Licenses in Karibib area.
Under the new agreement, Dynamic Geo Consulting Services, Auroch will pay a $7 500 fee for the option to enter into a JV to explore and develop EPL5751.
Preliminary investigation on EPL 5751 indicates existence of pegmatites outcropping at surface, the largest being more than 300m in length.
Auroch Minerals will retain up to a 90% interest in a granted exploration licence south-west of the historic Rubikon and Helikon lithium deposits.
“Importantly, our reconnaissance work has already identified extensive pegmatites within the tenement. Our goal is to rapidly identify and test large lithium bearing pegmatites of similar age and style to the pegmatites that host the nearby Rubikon and Helikon historical lithium mines,” said Auroch Chief Executive Officer Andrew Tunks.
According to Tunks, Auroch will sole fund all exploration expenditure on the project area until a positive bankable feasibility study or definitive feasibility study that support a decision to mine.
In addition, the company will be responsible for acquiring a mining licence for the project. Auroch will also act as manager of the JV, with the company expected to spend at least $50 000 during the term of the JV.
As part of the JV, the Australian junior Auroch Minerals will issue 200 000 shares to Dynamic on the first anniversary of the successful renewal of the exploration licence, and a further 500 000 shares on a positive feasibility study.