West Australian minerals explorer Kairos Minerals has entered into a lithium joint venture with Altura Mining at its Wodgina East Project, located 15km from the main Pilgangoora Lithium Mining Centre in the Pilbara region of WA.
Kairos said the JV will allow the company to unlock value from one of its key Pilbara lithium projects while maintaining its focus on gold exploration at its 100-owned Mount York Gold-Lithium Project.
Under the terms of the agreement, Altura can earn a 75% interest in the lithium rights over the Wodgina East tenements by spending a total of $1.25 million over 5 years, with an upfront cash payment of $100,000 upon execution.
Kairos will retain a free-carried 25% interest in the project once Altura has earned its interest.
The Company’s Managing Director, Mr Joshua Wellisch, said the establishment of a JV with one of the leading lithium explorer-developers in the Pilbara region to progress exploration at Wodgina East was a major coup for Kairos.
“We are pleased to have developed a strong working relationship with Altura, and we look forward to working with them as they take the project forward, with our 25% free-carried interest giving us exposure to any future exploration success,” Mr Wellisch said.
“This deal is also consistent with our strategic focus on the exploration and development of the significant gold potential at Mt York, where our maiden drilling program is continuing to expand the existing gold resource inventory.”
Kairos acquired the Wodgina East Lithium Project earlier this year as part of an extensive and high-quality lithium portfolio which it established in the East Pilbara lithium-tantalum province following its acquisition of the Mt York Project.
The project includes an extensive pegmatite field with well-documented lithium (spodumene) mineralisation and grades of up to 1.6% Li2O reported from historical reconnaissance rock chip sampling.
The regional and structural setting is similar to that of the Pilgangoora Syncline which hosts the major lithium-tantalum deposits in the Pilgangoora.
Despite its high prospectivity, the Wodgina East Project remains essentially unexplored for lithium due to an historical focus on tantalum mining.