Prospect Resources will slow down exploration activities at the Omaruru lithium project pending an internal review of the data generated during phase 2 drilling.
The Omaruru Lithium Project (Omaruru), comprising the EPL 5533 tenement, is centred on the village of Wilhelmstal, east of Karibib in Namibia, covering 131 square kilometres.
Prospect Resources acquired Richwing Exploration from Osino Resources for N$1.4 million (US$75,000) in cash.
Richwing Exploration holds the rights to the Omaruru Lithium Project.
Prospect Resources said exploration activities are set to be pared back to minimum holding commitments whilst additional lithium prospectivity within the licence for future drill targeting is evaluated.
The company further said that completing the Phase 2 drilling programme at Omaruru and the recent acquisition of 100% interest has laid the platform for re-assessing its priorities free of the original earn-in obligations of the preceding JV Agreement with Osino Resources.
The decision comes after the company returned no significant lithium intersections at Spirit Minor, two encouraging intersections at the Brockmans deposit out of 14 reverse circulation holes, and a considerable intersection at the Bergers series of deposits out of 12 reverse circulation holes.
A total of six mixed Rotary Air Blast and reverse circulation holes for 453m were completed at Spirit Minor, but no significant intersections were returned.
Prospect Resources said the geological interpretation is that the valley represents a structural break between the two outcropping lobes and that mineralisation is not present, or has been weathered away over time, at this structure.
“Due to its small size, further work is not warranted at the Spirit prospect,” the update said.
During the Phase 2 drilling programme at Brockmans, Prospect Resources said 14 RC holes for 1,129m were completed, and two encouraging intersections just over 800m north of OMR018 were returned.
These included 3m @ 0.74% Li2O from 56m and 3m @ 0.51% Li2O from 46m.
The deposit is now interpreted geologically as being structurally controlled with two specific regions mineralised with higher-grade lithium at either end of the kilometre-long surface outcrop.
The company identified areas still open at depth and would require future drilling to ascertain their volumetric extent.
Phase 2 drilling at Bergers consisted of 12 reverse circulation holes for 637m and four royal air blast holes for 200m.
The work produced a single significant intersection of 2m @ 0.83% Li2O from 42m in one drill hole and has downgraded the potential of Bergers, which now indicates that the surface pegmatite expressions do not thicken and coalesce at depth, as had been interpreted.
