White Cliff Minerals will intensify its focus on its rare earths and lithium portfolio after selling Abraxis Mining – including three Pilbara lithium tenements – to Gold Geological Consulting for $200,000.
The company says the transaction is part of an ongoing portfolio review that is expected to lead to further divestments of non-core projects as it builds on its significant Western Australian rare earths and lithium holdings. The strategy is aimed at positioning it for what it believes is a looming “wave” of opportunity in the power generation and distribution space.
The Abraxis transaction will comprise of an upfront cash payment of $20,000 from Gold Geological, with the remaining $180,000 payable within two weeks from the execution of the agreement. The parties have also entered into a deed of assignment for the 1 per cent of net smelter royalties granted to the original vendors of Abraxis.
White Cliff Mineral executive chairman Roderick McIllree said: “The sale of Abraxis is in line with the optimisation of our existing project portfolio. The Company has recently completed an assessment of numerous projects sourced via our international network and we are working to position ourselves in front of what we believe is the upcoming wave in metals associated with power generation and power distribution.”
Management says the company is in a healthy financial position with $1.95 million in the bank and liquid assets worth about $3.56 million. It is building a significant WA portfolio and recently added a dozen projects prospective for rare earths, lithium and iron-oxide-copper-gold (IOCG) deposits into its fold.
The 12 new operations cover 2562 square kilometres – from Jerramungup in the State’s Great Southern region, to Wanna Lakes near the South Australian border and up to the Three Rivers-Ashton Hills projects east of Carnarvon and south of Newman. The acquisitions add to its established rare earths and lithium sites at the Hines Hill, Diemals and Lake Tay projects.
Just last month, White Cliff recorded significant extensions to its maiden rare earths discovery at Hines Hill near Merredin in WA’s Central Wheatbelt region, with phase-two air core hits showing 5 metres at 2066 parts per million total rare earth oxides (TREO) from just 16m, including 434ppm TREO from 2m. Two wider hits showed 19m grading 897ppm from 2m and 13m reading 802ppm from 6m.
The phase-two campaign at White Cliff follows up on first-phase air-core (AC) hits that included 3m at 1602ppm TREO from 6m, within a 25m intercept running 837ppm TREO.
The company has also completed a massive soil and rock-chip sampling program across five of its other projects scattered around WA, with a focus on rare earths and lithium. A total of 271 soil samples and 29 rock-chip samples were collected at its Preston River lithium project that sits 30km north of the world’s biggest hard-rock lithium mine at Greenbushes.
A further 483 soil samples and 20 rock-chip samples were taken at its Diemals project. The operation sits about 185km north of Southern Cross in an area once thought to be solely prospective for nickel, copper and gold mineralisation. However, recent analysis suggests the zone could host lithium and rare earths.
Further north, White Cliff has collected 694 soil samples and nine rock-chip samples at its Munbinia rare earths project. It has also picked up 21 soil samples and 29 rock-chip samples at its Ashton Hills tenements in the Pilbara.
The samples are with the lab awaiting assay as the market waits to see which prospects the company’s mining veteran and newly-appointed executive chairman (Mr McIllree) will be keen on maturing.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By Andrew Duffy
