REG - Andrada Mining Ltd - Significant Lithium Resource Upgrade
06/02/2023 07:00
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RNS Number : 9474O Andrada Mining Limited 06 February 2023
6 February 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")
Drilling Delivers a Significant Lithium Resource Upgrade at the Uis Mine
Andrada Mining Limited, formerly Afritin Mining Limited, (AIM: ATM) an African
technology metals mining company with a portfolio of mining and exploration
assets in Namibia, is pleased to announce an updated lithium, tin, rubidium,
and tantalum Mineral Resource Estimate (MRE), at its flagship Uis Mine
("Uis"). This updated MRE, is in accordance with JORC (2012) and is a result
of the substantial 7,000 metre drilling programme undertaken in 2022 to expand
and increase the main V1/V2 pegmatite deposit currently being mined at Uis.
Highlights:
§ Updated MRE for the V1/V2 deposit with lithium and tantalum upgraded to a
Measured and Indicated classification as a result of infill drilling.
§ Lithium average grade has increased to 0.73% Li(2)0 from 0.63% Li(2)O
declared in 2019, total contained Li(2)O tonnes have increased by 30% to
587 000 tonnes.
§ Updated resource gives a Lithium Carbonate Equivalent of 1.45 million
tonnes.
§ The Measured and Indicated lithium resources increased by 47% to 38Mt.
§ Tin average grade has increased to 0.15% Sn from a previous average of
0.134% Sn, resulting in contained tin metal content of 120 000 tonnes.
§ Maiden resource declared for rubidium with a contained total of 109 400
tonnes at an average grade of 0.14% Rb.
§ Total MRE for the V1/V2 deposit inclusive of mining depletion has increased
to 81 Mt from 72 Mt.
Anthony Viljoen (CEO) commented:
"I am very pleased to announce a new enlarged lithium resource at our Uis Mine
in Namibia following significant drilling programme in 2022. This confirms our
belief that Uis is a globally significant lithium and tin resource that
remains open at depth and is one of over 180 mineralised pegmatites within 5km
of the Uis processing facility. The drilling programme has exceeded our
expectations, delivering higher grades, and has increased the overall tonnage
by 13% when compared to the previous resource estimate from 2019 and 30% more
contained lithium. The updated Mineral Resource Estimate is solely from V1/V2
pegmatite, which clearly highlights the significant untapped potential of the
wider Uis pegmatite swarm across our licence area.
"This MRE has been delivered ahead of our lithium pilot plant commissioning
which is due to come online in Q2 2023 and is an important step to realise the
additional lithium and tantalum revenue streams alongside our tin production.
This new resource will increase the economics for Andrada and will form the
basis for the next phase of expansion and growth for the Uis mine.
"The next phase of exploration will investigate the other proximal pegmatites
at Uis with the end goal of repeating this process and ultimately expand the
resource at Uis to achieve the exploration target of 200 Mt."
Overview of results
In January 2022, Andrada Mining initiated an exploration drilling programme
aimed at upgrading the resource classification for lithium (hosted in
petalite) and tantalum over the V1/V2 deposit to align with the existing
classification for tin. The 2022 infill drilling reduced the drill hole
spacing of the Andrada holes to a nominal 60 m by 60 m in the well-drilled
portions of the V1/V2 deposit and up to 80 m by 200 m over areas of known
mineralisation around the deeper portions of the deposit. A combined total of
51 infill drill holes (Fig.1), 22 DD and 29 RC, obtained in 2022, 26 holes
from 2018/19 and historical drill information from the company and historical
operations exist over the deposit. This information was utilised to generate
the updated Mineral Resource estimate.
Figure 1: Image indicating the location and name of the drill holes from the
2022 programme. Note: Assay results for some holes holes
(V1V2024,34,35,37,38,40,43,44,48,50,51,52,54,58 and 80) were not available at
the time of reporting but geological logging from these holes were used to
constrain the geological modelling. Assay results from all other holes have
been reported.
The updated MRE for V1/V2 is reported in accordance with the JORC Code (2012)
and contains 81 Mt of mineralised pegmatite at an average grade of 0.73 %
Li(2)O and 0.15 % Sn. This includes a total of 21 Mt at 0.72 % Li(2)O in the
Measured category, 17 Mt at 0.73 % Li(2)O in the Indicated category and 43 Mt
at 0.73 % Li(2)O in the Inferred category. The MRE is reported within a
conceptual pit shell to demonstrate reasonable prospects for eventual economic
extraction (RPEEE), and is reported on a gross basis in Error! Reference
source not found. and an attributed basis in Error! Reference source not
found..
Table 1: V1 and V2 deposit MRE in accordance with JORC (2012) on a gross basis
Resource Gross Basis (100% of V1/V2 deposit)
Classification Tonnes (Mt) Sn % Contained Sn metal (t) Li(2)O % Contained Li(2)O (t) LCE* (t) Ta ppm Contained Ta metal (t) Rb % Contained Rb metal (t)
Measured 21 0.14 29 000 0.72 147 000 363 531 99 2 040 0.15 31 500
Indicated 17 0.15 25 000 0.73 125 000 309 125 88 1 520 0.14 23 800
Inferred 43 0.15 66 000 0.73 315 000 778 995 78 3 400 0.13 55 900
Total 81 0.15 120 000 0.73 587 000 1 451 651 86 6 960 0.14 111 200
Source: CSA Global
Note: The constraining pit shell is based on a tin price of US$25,500/t and a
price of US$1,500/t for a 4 % Li(2)O petalite concentrate. Losses and mining
dilution were set at 5%. Pit slope angles were assumed to be 55° with an
assumed metallurgical recovery of Sn of 80% producing a concentrate of 60 %
Sn, and Li(2)O (as petalite) recovery of 45 %. Mining, Treatment, G&A and
Selling Costs have been supplied by Andrada and reviewed for reasonableness by
CSA Global. Tabulated data have been rounded off and this may result in minor
computational errors. Contained metal for lithium refers to lithium oxide
(Li(2)O). *- LCE - Lithium carbonate equivalent
Table 2: V1 and V2 deposit MRE reported on an Attributable Basis in accordance
with JORC (2012)
Resource Attributed basis (85%)
Classification Tonnes (Mt) Sn % Contained Sn metal (t) Li(2)O % Contained Li(2)O metal (t) LCE* (t) Ta ppm Contained Ta metal (t) Rb % Contained Rb metal (t)
Measured 18 0.14 24 650 0.72 124 950 309 001 99 1 734 0.15 26 775
Indicated 14 0.15 21 250 0.73 106 250 262 756 88 1 292 0.14 20 230
Inferred 73 0.15 56 100 0.73 267 750 662 146 78 2 890 0.13 47 515
Total 69 0.15 102 000 0.73 498 950 1 233 903 86 5 916 0.14 94 520
Source: CSA Global
Note: Tabulated data have been rounded off and this may result in minor
computational errors. Contained metal for lithium refers to lithium oxide
(Li(2)O)
* Andrada has an attributable ownership of 85% in Uis with the remaining 15%
owned by The Small Miners of Uis (SMU)
Table 3: Percentage change of tonnes contained, grades and deposit size.
MRE Year Tonnes (Mt) Sn % Contained Sn metal (t) Li(2)O % Contained Li(2)O (t) Ta ppm Contained Ta metal (t)
2019 72 0.134 95 539 0.63 450 265 85 6 091
2023 81 0.15 120 000 0.73 587 000 86 6 960
% Change 13% 12% 26% 16% 30% 1% 14%
The infill drilling programme undertaken in 2022 has resulted in an increased
mineral resource classification for lithium and tantalum and an increase of
the overall tonnage when compared to the maiden MRE published in 2019. In
addition, an estimate has been provided on rubidium for the first time,
highlighting the polymetallic nature of the deposit. Rubidium is found within
mica which is currently being concentrated as a potential by-product.
Geology and geological interpretation
The V1/V2 deposit is hosted within the Damara Orogen, a typical pan
African-aged (750-440 Ma) orogenic belt which formed during the assembly of
Gondwana. The orogenesis produced voluminous quantities of granitic magmatism
during the syn-tectonic phases of collision. This was followed by a pegmatitic
phase of magmatism in the post-tectonic environment, populating the Damara
Orogen with numerous pegmatitic intrusions.
The V1/V2 pegmatite has a sigmoidal shape in plan and is hosted in biotite
schists and the distinctive cordierite (and biotite and quartz replacements of
cordierite)-bearing knotted schist (the so-called "knottenschiefer"). The
pegmatite strikes to the northeast and dips to the northwest at between 30°
and 50°. The tin and lithium mineralisation style is primarily magmatic
although some of the tin mineralisation may be associated with a late stage
mica rich greisen phase. The primary lithium mineral is petalite.
Modelling and estimation
An in-situ MRE was undertaken for the pegmatite bodies, the data was loaded
and utilized to construct a geological model followed by geostatistical
analyses.
An estimation was carried out for Sn, Li, Nb, Rb and Ta by ordinary kriging
into a block model of 20 m x 20 m x 10 m (X x Y x Z), the block size being
selected after a sensitivity analysis was undertaken on a range of block sizes
with an emphasis on the grade/tonnage sensitivity around the expected cut-off
grade, top cutting was applied to Sn (1.0% Sn) within both the V1 and V2
pegmatite wireframes with the result making minimal difference to the
average-declustered grade.
A five individual element estimation was undertaken in three passes, with each
subsequent pass extending the search ellipse and decreasing the minimum number
of samples to be used for estimation. The first pass search ellipse had the
same dimensions as the variogram ranges. Subsequent estimation passes were
extended, and the minimum number of samples used was reduced until in the
third pass minimum was set to 4 samples.
Estimates were validated by comparing graphical sections showing block grades
(Fig.2, Fig.3 and Fig.4) vs composite grades, domain averages with
de-clustered means and by trend (swath) plots.
The previous MRE was carried out by CSA Global in September 2019 when only Sn
was classified as Measured, Indicated, and Inferred, and all Ta and Li(2)O
Mineral Resources were classified as Inferred. Estimated grades for Sn, Ta and
Li(2)O are similar between the two models, but tonnages have increased due to
infill and extensional drilling.
Figure 2: Typical cross section of the Block model and Input Composite data
coloured by Sn Grade, looking northeast.
Figure 3: Typical cross section of the Block model and Input Composite data
coloured by Li Grade
Figure 4: Typical cross section of the Block model and Input Composite data
coloured by Ta Grade
Mineral resource classification criteria
The Mineral Resource has been classified as Measured, Indicated and Inferred
Mineral Resource (Figure 5) based on data quality, sample spacing, geological
interpretation and from ordinary Kriging (OK), specifically, the slope of
regression (SoR) and the kriging efficiency (KE) metrics. For Measured
Mineral Resources an average SoR > 0.7 was required, Indicated Mineral
Resources an average SoR > 0.5 was required and all other Mineral
Resources not already classified and constrained to blocks not more than 50 m
from the nearest sample and with at least 4 samples within the search
neighbourhood, were classified as Inferred Mineral Resources. The 50 m
constraint ensures that extrapolation is limited to 50 m.
The preliminary classification groupings were reviewed in 3D and plan view,
identifying coherent zones of each class. Subsequent polygons were defined for
Measured, Indicated and Inferred Mineral Resources within which the final
classification categories were assigned. All blocks estimated and classified
as contained within the RPEEE pit shell.
Figure 5. Plan View of the MRE Block Model, Coloured by CLASS (Red = Measured,
Green = Indicated, Blue = Inferred), with drillhole collars displayed coloured
by drill phase. Triangle collar points highlight only Geology logging was
available.
Competent Person statement
The technical data relating to the Mineral Resources in this announcement has
been reviewed by Anthony Wesson of CSA Global, who provides geostatistical
consulting services to Andrada. Anthony Wesson has 45 years of industry
related mineral project development experience and is a Competent Person for
the reporting of Mineral Resources. He has been a Fellow of the AusIMM for
more than 25 years. He has reviewed the technical disclosures in this release
and has undertaken the Mineral Resource Estimation and classification for tin,
lithium, tantalum, and rubidium. Mr Wesson consents to the inclusion of the
information in the form and context in which it appears.
The technical data relating to the exploration results in this announcement
has been reviewed by Michael Cronwright (M.Sc., FGSSA, Pr. Sci Nat.
(Geological Sciences)) of CSA Global, who provides geological consulting
services to Andrada. Mr Cronwright is the Principal Consultant - Battery
Metals for CSA Global and has 23 years' experience in mineral exploration
and is a Qualified Person under the AIM and ASX Rules. Mr Cronwright consents
to the inclusion of the information in the form and context in which it
appears.
Glossary of abbreviations
DD Diamond core drilling
LCE Lithium Carbonate Equivalent
Li Symbol for Lithium
Li → Li(2)O Metal to metal-oxide conversion factor of 2.153
Li → LCE Metal to lithium carbonate conversion factor of 5.323
Li(2)O Lithium oxide
JORC The Australasian Code for Reporting of Exploration Results, Mineral Resources
and Ore Reserves
KE Kriging Efficiency
MRE Mineral Resource Estimate
PPM Parts Per Million
QA/QC Quality Assurance / Quality Control
Rb Symbol for Rubidium
RC Reverse Circulation drilling
RPEEE Reasonable Prospects for Eventual Economic Extraction
Sn Symbol for Tin
SoR Slope of Regression
Ta Symbol for Tantalum
V1/V2 Name of the targeted pegmatite unit, V1/V2 denotes where the V1 and V2
pegmatites have merged at depth.
Glossary of technical terminology
Apparent thickness The relationship between apparent width and true thickness is based on the
formula by Addie (1968 Economic Geology, vol 63, pp 188-189).
Dip angle The angle of inclination measured downward from horizontal.
Geological model The interpretation of mineralisation and geology that controls
mineralisation. This is usually generated in a three-dimensional computer
environment.
Inferred Mineral Resource The part of a Mineral Resource for which quantity and grade or quality can be
estimated on the basis of geological evidence and limited sampling and
reasonably assumed, but not verified, geological and grade continuity
Indicated Mineral Resource The part of a Mineral Resource for which quantity, grade, quality, etc., can
be estimated with a level of confidence sufficient to allow the appropriate
application of technical and economic parameters, to support mine planning and
evaluation of economic viability
Measured Mineral Resource The part of a Mineral Resource for which quantity, grade, or quality, etc.,
are well enough established that they can be estimated with confidence
sufficient to allow the appropriate application of technical parameters to
support production planning and evaluation of economic viability
Mineral Resources Classification Mineral Resources are sub-divided, in order of increasing confidence in
geological evidence and sampling (grade) knowledge, into Inferred, Indicated
and Measured classes. An Indicated Mineral Resource has a higher level of
confidence than an Inferred Mineral Resource but has a lower level of
confidence than a Measured Mineral Resource.
Pegmatite An igneous rock typically of granitic composition, which is distinguished from
other igneous rocks by the extremely coarse and systematically variable size
of its crystals, or by an abundance of crystals with skeletal, graphic, or
other strongly directional growth habits, or by a prominent spatial zonation
of mineral assemblages, including monomineralic zones.
Petalite Lithium bearing aluminosilicate (LiAlSi(4)O(10)) with a maximum theoretical Li
content of 4.5%. Current applications largely in the glass and ceramic
industry but can potentially be used in the battery chemical market using
similar processes and technologies used to process spodumene.
Xenolith A foreign rock fragment (e.g., schist) within an intrusive body (e.g.,
pegmatite) that is unrelated to the igneous body.
Andrada Mining Limited +27 (11) 268 6555
Anthony Viljoen, CEO
Sakhile Ndlovu, Head of Investor Relations
Nominated Adviser +44 (0) 207 220 1666
WH Ireland Limited
Katy Mitchell
Corporate Advisor and Joint Broker
H&P Advisory Limited +44 (0) 20 7907 8500
Andrew Chubb
Jay Ashfield
Stifel Nicolaus Europe Limited +44 (0) 20 7710 7600
Ashton Clanfield
Callum Stewart
Varun Talwar
Tavistock Financial PR (United Kingdom) +44 (0) 207 920 3150
Emily Moss
Catherine Drummond
Adam Baynes
__________________________________________________________________________________________
About Andrada Mining Limited
Andrada Mining Limited, formerly Afritin 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.
Lithium laboratory test work completed during the 2022 calendar year indicated
a high-grade, ultra-low iron lithium petalite concentrate. The test work to
convert lithium petalite concentrate to battery-grade lithium hydroxide was
initiated with Nagrom, a leading Australian processing company, and commercial
engagements with lithium petalite concentrate off - takers are on-going.
An exploration drilling programme is currently underway with the aim of
expanding the tin resource over the fourteen additional, historically mined
pegmatites, all of which occur within a 5 km radius of the current processing
plant. The Company has set a mineral resource target of 200 Mt to be
delineated within the next 5 years. The substantial mineral resource potential
allows the Company to consider economies of scale.
Andrada is managed by a board of directors with extensive industry knowledge
and a 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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