Budding gold developer Calidus Resources is joining forces with Haoma Mining under the guise of new company, Pirra Lithium to unlock the lithium potential of more than 1,000 square kilometres of prime Pilbara real estate. The Pilbara Craton is shaping up to be one of the world’s major lithium and tantalum provinces housing the behemoth Wodgina and Pilgangoora lithium projects alongside Global Lithium’s evolving Archer deposit.
Whilst attention at Calidus remains strongly on its Warrawoona gold project with the first gold pour only months away, management said it wants to create additional shareholder value by establishing a separate, dedicated team to explore the lithium opportunities over the prospective Pilbara tenure held by both Calidus and Haoma.
Under the joint venture agreement, Calidus and Haoma will own an equal share of Pirra Lithium with Calidus coughing up the first $1 million of funding for exploration and grabbing hold of the exploration reins. After Calidus buys the first round both parties will chip in equal parts going forward to fund the company.
Calidus Resources Managing Director, David Reeves said: “Pirra Lithium creates a highly-leveraged exploration opportunity for our shareholders.”
“There is clearly potential to unlock substantial value by exploring what is highly prospective lithium ground in one of the world’s best lithium provinces.”
“We can capitalise on this opportunity without it having any impact on our core asset at Warrawoona, where we are on track to pour first fold in the coming quarter.”
“As part of this strategy to create additional value for our shareholders while maintaining our sharp focus on Warrawoona, we are establishing a separate dedicated team to pursue this lithium opportunity.”
The tenure being transferred to Pirra Lithium covers granites and pegmatites of the Split Rock Supersuite which is already proven to host lithium.
Calidus said there is a strong link between lithium occurrences in the Pilbara with historic tin and tantalum fields. Prime examples include the nearby Archer lithium deposit, located within the Moolyella tin field and the Wodgina lithium deposit sited within the Wodgina tin field.
Interestingly, Calidus said the Shaw River tin field is located within the Pirra Lithium tenure and is hosted within granites and pegmatites of the Split Rock Supersuite.
The new dedicated team at Pirra Lithium will very likely be keen to follow up on this observation and get boots on ground in quick time. Field mapping to determine the size and distribution of pegmatites is slated to commence immediately in preparation for the inevitable bite of the drill bit.
The opening weeks of 2022 has seen the rise in the lithium prices continuing to stretch higher, gaining approximately 20 per cent in the past few weeks tacking onto the end of a 250 per cent rise in the past six months.
The swift global demand of lithium to supply the electric vehicle market on the back of climate change momentum is outstripping production pushing prices higher and faster than many anticipated.
Whilst Calidus is only months off from being Australia’s newest gold producer, it could prove to be more than a one-trick pony adding lithium to its arsenal courtesy of the strategic Pirra Lithium spinoff. The months ahead could prove transformative with all hands on deck at Calidus.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By Matt Birney
