REG - Andrada Mining Ltd - Lithium Development Update

Andrada MiningAnnouncement

27/11/2023 07:00

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RNS Number : 7313U  Andrada Mining Limited  27 November 2023

27 November 2023

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 (MAR) as in force in the United Kingdom pursuant to the
European Union (Withdrawal) Act 2018. Upon the publication of this
announcement via Regulatory Information Service (RIS), this inside information
is now considered to be in the public domain.

Andrada Mining Limited

("Andrada" or the "Company")

Lithium Pilot Plant Produces First Lithium Concentrate
Petalite Off-Take Agreement Discussions Advanced

Andrada Mining Limited (AIM: ATM), an African technology metals mining company
with a portfolio of mining and exploration assets in Namibia, is pleased to
provide an update on the commissioning and first production at its lithium
(bulk-sampling) pilot plant ("Pilot Plant") along with an update on the
Company's lithium strategy.

Highlights

§ Commissioning of the Pilot Plant completed successfully with the production
of 10 tonnes on-specification saleable lithium concentrate.

§ Production ramp up to 250 tonnes per month planned during first quarter of
the 2024 calendar year ("Q1 CY2024" and "CY2024").

§ Discussion with glass-ceramics off-taker for supply of high-purity petalite
is progressing well.

§ On-going metallurgical testwork for production of battery grade lithium
hydroxide.

§ Metallurgical testwork progressing to optimise production from Uis and
preliminary investigations on Spodumene Hill and Lithium Ridge.

§ Lithium exploration drilling campaigns for CY2024 have been planned for all
mining licence areas.

§ Discussions with Strategic Process participants are progressing. Further
updates to be provided in due course.

Anthony Viljoen (CEO) commented

"We believe that our efforts throughout the year have the potential to place
Andrada at the forefront of lithium development in Africa. The discovery of
additional lithium-within the Company owned Lithium Ridge and Spodumene Hill
also underscores the possibility that Namibia's Erongo region could be a key
participant in the global lithium landscape, with the potential to host a
cluster of significant mines.

The early results from the recently commissioned lithium processing pilot
facility have instilled unwavering optimism. We are also pleased by the
ongoing negotiations with lithium off-takers that target Andrada's involvement
in all downstream lithium markets, and we look forward to providing further
details as these negotiations progress. Overall, we consider the pilot plant
serves as a crucial de-risking element in the Company's lithium portfolio,
further bolstering our confidence in Andrada's lithium strategy."

Lithium Pilot Plant

The Company's Pilot Plant is located adjacent to the main tin processing plant
at the Uis Mine. It was successfully commissioned in October 2023 producing
approximately 10 tonnes of concentrate during the process. The production rate
is expected to increase to 250 tonnes per month by the end of March 2024. The
initial objective of the Pilot Plant is to produce sufficient bulk samples of
petalite concentrate within specifications for the premium specialist glass
and ceramics markets. To that effect, the Directors are pleased with the
progress being made on discussions for a petalite off-take agreement.
Secondly, the Pilot Plant is producing concentrate for metallurgical testwork
to determine appropriate specifications for the lithium battery refinery
market. Finally, by the end of February 2024 , the intention is to produce
concentrate for initial commercial sales into the spot market which the
Directors believe is a realistic prospect for the Company. Early internal
estimates suggest that the petalite concentrate from the Pilot Plant could be
priced between USD1 600 and USD2 200 per tonne in the current spot market
(pricing provided for guidance purposes only).

Lithium Market and Development Strategy

By initially targeting pegmatites with a higher lithium grade, Andrada could
produce concentrate for all downstream lithium markets. From January 2024 the
Company intends to ramp up its exploration activities and its metallurgical
testwork programme, to identify additional mineral - rich pegmatites that will
enhance possibilities for additional revenue streams for the Company.

Andrada aims to construct a lithium mining and concentration facility with a
minimum production capacity of 15 000 tonnes per annum Lithium Carbonate
Equivalent("LCE"), which would require approximately 2.5 to 3.0 million tonnes
per annum ("Mtpa") run-of-mine ore. The long-term production capacity targeted
is 50 000 tpa LCE or 10 Mtpa run-of-mine ore. This strategy is underpinned by
what the Directors believe to be a potentially significant lithium resource
within Andrada's mining licences. As previously announced, the Company is also
progressing with Strategic Process discussions with parties interested in
partnering on its lithium projects, and further updates will be provided in
due course, as appropriate.

Lithium Exploration Strategy

The exploration programmes planned for CY2024 are designed to enhance the
understanding of the mineralisation on all the Company's mining licences. The
exploration team has completed the plans to advance the resource on the mining
licences as follows:

§ Uis:  Resource validation drilling over the Northern and Central
pegmatites clusters to enhance the current MRE classification of tin, to
establish the mineral potential for lithium and other technology metals.

§ Lithium Ridge: implement a high-density drilling campaign at the historical
TinTan mine area for the development of a maiden Mineral Resource Estimate and
to enhance understanding of the lithium mineralisation within the high
priority pegmatites identified.

§ Spodumene Hill: undertake a drill programme to delineate the higher grade
spodumene zones within the B1 and C1 pegmatites as well as the mapped
satellite bodies surrounding the main mineralised units.

The exploration strategy will remain flexible to enable the Company to
investigate any additional mineralisation opportunities they encounter as they
implement the planned programmes.

Lithium Metallurgy

The primary lithium minerals at Andrada's three mining licences are petalite
and spodumene with their distributions varying across the licence areas. The
explored pegmatites on Uis are petalite dominant whilst on Lithium Ridge and
Spodumene Hill they are spodumene - dominant. Andrada's lithium development
strategy therefore incorporates the production of both petalite and spodumene
concentrates which enables multiple off-take options suitable for both the
industrial (glass-ceramics) and chemical (battery) concentrate markets. The
Company is implementing metallurgical testwork to determine the possibility of
producing battery grade lithium hydroxide as well as to determine optimal
production from Uis, Spodumene Hill and Lithium Ridge.

The Company confirms that it intends to publish its interim results for 6
months ended 31 August 2023 on or around 29 November 2023.

 

 CONTACT
 Andrada Mining Limited                       +27 (11) 268 6555

 Anthony Viljoen, CEO

 Sakhile Ndlovu, Head of Investor Relations
 Tavistock Financial PR (United Kingdom)      +44 (0) 207 920 3150

 Jos Simson

 Catherine Drummond

 Adam Baynes
 Nominated Adviser
 WH Ireland Limited                           +44 (0) 207 220 1666

 Katy Mitchell/Andrew de Andrade
 Corporate Advisor and Joint Broker
 H&P Advisory Limited                         +44 (0) 20 7907 8500

 Andrew Chubb

 Jay Ashfield

 Nilesh Patel
 Stifel Nicolaus Europe Limited               +44 (0) 20 7710 7600

 Ashton Clanfield

 Callum Stewart

 Varun Talwar

About Andrada Mining Limited

Notes to editors

Andrada Mining Limited is a London-listed technology metals mining company
with a vision to create a portfolio of globally significant, conflict-free,
production and exploration assets. The Company's flagship asset is the Uis
Mine in Namibia, formerly the world's largest hard-rock open cast tin mine.

Andrada is managed by a board of directors with extensive industry knowledge
and management team with deep commercial and technical skills. Furthermore,
the Company is committed to the sustainable development of its operations and
the growth of its business. This is demonstrated by how the leadership team
places significant emphasis on creating value for the wider community,
investors, and other key stakeholders. Andrada has established an
environmental, social and governance system which has been implemented at all
levels of the Company and aligns with international standards.

-END-

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