Lithium

Mineral Resources adds the West Spargoville Project to its lithium arsenal

Thu 02 Jun 22, 11:14am (AEST)
Copper 2 Mining
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Key Points

  • Mineral Resources has the right to acquire an initial 25% interest in the West Spargoville Project
  • West Spargoville is located within close proximity to high profile projects owned by Allkem and Essential Metals
  • The project is currently completing an RD drilling program

Mineral Resources (ASX: MIN) has entered into a lithium partnership with Marquee Resources (ASX: MQR).

The agreement provides Mineral Resources (MinRes) with the right to acquire a starting 25% interest in Marquee’s West Spargoville Project (WSP) in Western Australia.

MinRes will pay the initial interest by funding all exploration and development activities, including a feasibility study and JORC compliant resource for the project.

From there, MinRes can grow its ownership by electing to:

  • Processing Farm-in

    • Earn an additional 45% interest by funding the project to the point of a Final Investment Decision

  • Mining Farm-in

    • Earn an additional 26% interest by funding the project until the development, construction and commissioning of mine-related facilities

    • MinRes will build, own and operate all plant and infrastructure operations and buy lithium for a mine gate sale price

About West Spargoville

The WSP project is located in the centre of the Southern Yilgarn Lithium Belt, an area well-known for spodumene deposits that include:

  • Mt Marion Mine owned by Allkem

  • Buldania Project owned by Liontown

  • Pioneer Dome Project owned by Essential Metals

2022-06-02 10 49 22-pdf
Source: Marquee Resources

The project is currently executing an RC drilling program over high-priority targets identified from previous exploration activities.

WSP is still considered relatively early-stage as it attempts to search for "the next economic lithium discovery".

2022-06-02 11 02 02-Mineral Resources Ltd (ASX MIN) Share Price - Market Index

 

Written By

Kerry Sun

Finance Writer & Social Media

Kerry holds a Bachelor of Commerce from Monash University. He is an avid swing trader, focused on technical set ups and breakouts. Outside of writing and trading, Kerry is a big UFC fan, loves poker and training Muay Thai. Connect via LinkedIn or email.

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