DRILLING COMMENCES AT HIGH PRIORITY LITHIUM TARGET
- Drilling program commenced at Shamva for a minimum of 3 holes and 300 metres at the Bonnyvale target.
- Flexibility to expand drilling program pending initial results.
- The aim of the drilling program is to identify thickness of lithium mineralisation and if it continues at depth. Recent surface rock samples over the Bonnyvale returned lithium grades of over 2% Li2O.
- Surface samples from nearby Loch Ness target delivered to assay labs.
Six Sigma Metals Limited (“SI6” or “the Company”) is pleased to announce that the drill pads have been cleared and drilling of the high priority lithium target at Bonnyvale has commenced. Drilling is expected to be completed by the end of July and assay results to be returned in August.
Initial Drilling Program
As announced previously by SI6, an EIA report was completed for the initial drilling program at Bonnyvale and the Company mobilised expediently to ensure drilling commenced as soon as possible.
The initial drilling program will be conducted as a first pass to identify if lithium mineralisation continues at depth and will target the Bonnyvale pegmatite where 61 surface rock samples showed lithium mineralisation at levels over 2% Li2O (as announced on ASX 6 June 2018).
The drilling program will comprise 3 holes designed to intersect thick outcropping lithium-mineralised pegmatite as identified from surface rock samples (see ASX announcement 6 June 2018) and field investigations by the Directors of SI6. The area targeted by the 3 holes shows a prominent pegmatite body containing a long line of historic trenches and underground workings that display coarse-grained lithium host minerals such as spodumene, petalite and lepidolite.
The program aims to test the morphology, thickness and depth extent of the Bonnyvale pegmatite body.
Flexibility has been maintained to expand drilling program pending results.
ACQUISITION AND EXPLORATION UPDATE
- Option Agreement with Mirrorplex Pty Ltd has been amended:
- Consideration for Phase 1 (to Earn-In an initial 30%) has been modified, including a reduction of 25 million shares (50% reduction of the consideration shares for Phase 1 of the Earn-In); and
- Due diligence period has been extended to 116 days to allow for targeted exploration drilling to commence in July prior to SI6 electing to exercise the Option.
- An Environmental Impact Assessment has been completed over the Bonnyvale target area permitting SI6 to commence drilling beneath broad, high-grade lithium mineralisation.
- Drilling program to commence in July targeting a minimum of 3 holes. Flexibility to increase drilling scope pending results.
- The initial drilling program will be conducted as a first pass to identify if lithium mineralisation continues at depth and will target the Bonnyvale pegmatite where 61 surface rock samples showed lithium mineralisation at levels over 2% Li2O.
- SI6 fully funded to execute drilling program.
- New deal structure results in less dilution for shareholders of SI6 to earn-in to Phase 1 whilst maintaining the same exposure. In addition, the extension to the due diligence period allows SI6 to have a better-informed decision prior to exercising the Option under the Option Agreement.
The Board of Six Sigma Metals Limited (“SI6” or the “the Company”) is pleased to announce an amendment to the three-phased staged option agreement with Mirrorplex Pty Ltd (“Mirrorplex”) and the shareholders of Mirrorplex (“Vendors”) (“Option Agreement”), under which the Company can acquire up to an 80% interest in the Chuatsa Vanadium-Titanium and Shamva Lithium Projects in Zimbabwe (“the Projects”). SI6 and Mirrorplex have also completed an Environmental Impact Assessment (EIA) report and expects to be drilling in July a minimum of 3 holes to assess lithium potential at depth.
The accelerated drilling program will allow SI6 to further assess the lithium potential of the Projects before exercising the Option and committing to Phase 1 of the Option Agreement.
Variation of Option Agreement
SI6, Mirrorplex and the Vendors have agreed to a variation of the Option Agreement (announced on 17 May 2018) to modify the Earn-In Phase 1 consideration to be reduced to 25 million SI6 shares (previously 50 million SI6 shares) and increased by 25 million SI6 options (total 35 million options, previously 10 million options). The terms of the SI6 options have also been amended with an exercise price of 2.5c (previously 3c) and expiry 3 years from issue (no change to expiry).
In addition, SI6, Mirrorplex and the Vendors have agreed to extend the due diligence period on the Projects from 60 days to 116 days. This allows additional time for SI6 to accelerate exploration drilling and further assess lithium potential at depth prior to electing whether or not to exercise the Option.
The exploration funds expended by SI6 during the due diligence period will be included and incorporated into the work program for Phase 1 as valid expenditure by SI6 on the Projects in the event that the Option is exercised.
The Directors of SI6 are pleased with the outcome as it means less dilution for shareholders of SI6 to earn-in to Phase 1 whilst maintaining the same exposure. In addition, the extension to the due diligence period allows SI6 to have a better-informed decision prior to exercising the Option under the Option Agreement.
High Grade Results at Shamva Lithium Project
- Results from 240 Rock Chip samples taken from the exposed Bonnyvale pegmatite body at the Shamva Lithium Project provide high grade lithium assay results up to 3.13% Li2O.
- 61 Rock Chip samplesreturned values above 2% Li2O as seen in figure below.
- Lithium mineralisation defined over ~160m thickness and ~550m strike at surface in the Bonnyvale Pegmatite.
- Mapped pegmatite outcrops show a cumulative strike length up to 3km (five mapped bodies) and widths ranging up to 250m, with samples from 3 of the bodies sampled to date showing a high proportion of assays reporting between 1% and 3.4% Li2O.
- Results from a further 58 rock samples from the Loch Ness Pegmatites are pending and expected to be completed over the coming weeks.
- SI6 is well funded to complete an aggressive exploration program, including an initial drilling program planned to target high-grade areas scheduled to commence during phase 1 of the option earn-in agreement.
The Board of Six Sigma Metals (“SI6” or “the Company”) is pleased to announce that it has received results from a further 240 rock samples taken from exposed pegmatite bodies at the Shamva Lithium Project. Further high-grade lithium mineralisation has continued to be revealed at Shamva, with the latest batch of assay results from the recent rock chip sampling program over the large Bonnyvale pegmatite body confirming a high proportion of samples containing Li2O grades ranging between 1% Li2O to 3.13% Li2O. The samples also show elevated levels of Tantalum and rare earth elements such as Pr, Cs and Rb
A further 58 samples were collected from the Loch Ness pegmatites with the results from this work pending.
SI6 is currently undertaking a Due Diligence assessment of the project where it has entered into an agreement under which the Company can acquire up to an 80% interest in the Chuatsa Vanadium-Titanium and Shamva Lithium Projects in Zimbabwe from the vendors of Mirrorplex Pty Ltd (“Mirrorplex”) in a three-phase staged option agreement (See ASX announcement, 17/05/2018).
Acquisition of highly prospective Vanadium-Titanium and Lithium assets
- Option agreement executed to acquire up to 80% interest in the Chuatsa Vanadium-Titanium and Shamva Lithium Projects in Zimbabwe from Mirrorplex Pty Ltd.
- The Chuatsa Vanadium project is located 140km northeast of Harare.
- The project was historically explored by Anglo America Prospecting (Rhodesia) Ltd and remains un-explored since 1964.
- Historical trenching and borehole assays reported Vanadium Pentoxide grades up to 0.80% V2O5 and Titanium Dioxide to 7.81% TiO2.
- The Shamva Lithium Project has excellent exploration potential and contains at least 5 large pegmatite bodies with evidence of historic small-scale tin/beryl mining on some pegmatites and records of “substantial” outcrops of Spodumene and Lepidolite
- Recent geological mapping has confirmed strong occurrences of outcropping Lithium mineralisation in the form of minerals such as spodumene, lepidolite and zinnwaldite with recent reconnaissance rock sampling revealing:
- Numerous results above 2% Li2O to a maximum of 3.40% Li2O
- 11 results above 1% Li2O
- Indications of 3 new pegmatite areas that do not appear on historical maps
- The Shamva Lithium Project consists of 10 granted prospecting licenses and is located 65km north east of Harare in Zimbabwe. The area is serviced by sealed roads and grid power.
- Acquisition structured as a phased share acquisition earnin. SI6 at its sole election may earn up to 80% of the Vanadium and Lithium assets over three phases as projects are de-risked.
- Aggressive exploration program planned across all assets (Vanadium and Lithium).
- Transaction leverages SI6 to high growth energy metals sector across two commodities in a country experiencing material investor interest.
The Board of Six Sigma Metals (“SI6” or “the Company”) is pleased to announce that it has entered into an agreement under which the Company can acquire up to an 80% interest in the Chuatsa Vanadium-Titanium and Shamva Lithium Projects in Zimbabwe from the vendors of Mirrorplex Pty Ltd (“Mirrorplex”) in a three-phase staged option agreement whereby the Company can acquire an interest in the Projects by acquiring an interest in the share capital of Mirrorplex (“the Acquisition”). The Acquisition is subject to various shareholder and regulatory approvals. Refer to page 10 below for a summary of the material terms of the Acquisition.
The Acquisition is in line with the previously announced strategy to explore for, or acquire, projects containing “battery or new world” metals to capitalise on the rising interest in the sector due to recent global technology advances.
The Acquisition is the culmination of a number of years focus on the battery metals sector and leverages the Company’s significant skills and experience in exploring and operating in Southern Africa and is complementary to the Company’s current assets.
The Board of Six Sigma Metals Limited is pleased to announce that $1,600,000 has been raised in a placement following strong interest from a number of sophisticated and professional investors. The Company will issue fully paid ordinary shares at $0.015 per share with free attaching quoted options (SI6OC) on the basis of two free options for every five shares subscribed under the placement.
The placement will be completed in two tranches as follows:
- Tranche 1: 75,333,333 shares will be issued utilising the available placement capacity under ASX Listing Rules 7.1 and 7.1A raising $1,130,000 (before costs). It is expected that this tranche of the placement will settle prior to the end of December 2017
- Tranche 2: 31,333,333 shares will be issued with shareholder approval raising $470,000 (before costs). This tranche of the placement will settle after the General Meeting which is planned to be held in February/March 2018.
The issue of the options will be subject to shareholder approval which will be sought at the same General Meeting in 2018.
Use of funds raised
The Company intends to apply the additional capital raised to fund exploration on the existing tenement portfolio, potential new ventures, working capital and to pay the costs of the placement.
Xcel Capital Pty Ltd (“Xcel”) acted as Lead Manager to the Placement.
Subject to shareholder approval, Mr Ed Bulseco, or his related entities, will subscribe for up to 3,333,333 shares ($50,000) in Tranche 2 of the placement. Xcel will be paid a placement fee of 6% of the total capital raised plus GST. Mr Ed Bulseco is a Director and substantial shareholder of Xcel.
Further to the announcement released on Monday 18 December, additional samples from the recent drilling program are being assayed and the results are expected to be received shortly.