Prospect Resources is considering selling the Omaruru lithium project once the market improves.
The Omaruru Lithium Project, comprising EPL 5533 tenement, is centred on the village of Wilhelmstal, east of Karibib, and covers 175 square kilometres.
Osino Resources subsidiary, Richwing Exploration, holds the rights to the Omaruru Lithium Project.
Prospect Resources signed a shareholder agreement with Osino Resources Corp. to acquire up to 51% and potentially up to 85% interest in the Omaruru Lithium Project in September 2022.
Under the agreement, Prospect would invest US$1 million for Phase 1 to earn 40% in Richwing Exploration and US$560,000 to gain another 11% in Phase 2.
In March 2024, Prospect Resources announced that it had acquired the residual 60% interest in the Omaruru Lithium Project from Osino Resources for US$75,000 in cash.
Three months later, Prospect Resources announced that it was slowing down exploration activities at the Omaruru lithium project pending an internal review of the data generated during phase 2 drilling.
The decision came 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.
In its latest investor presentation, Prospect Resources says cost allocation has been reduced significantly, keeping holding costs low.
Due to the low lithium investment market, the company is undertaking desktop studies over the next 12 months.
“The potential sale of the asset will be made once the market improves,” the company says in the investor presentation.
Past project exploration was primarily focused on the area’s gold potential.
This work included surface soil geochemistry, which AGA, BAFEX, and Osino undertook.
The interpretation of typical LCT Pathfinders identified two central anomalies.
The most significant one, which covers the historically mined Karlsbrunn and Spirit deposits, became the focus of a pegmatite-focused 16-hole RC scope drilling programme by Osino in 2020.
Several significant intercepts were delineated, but site access difficulties for the rig and a focus by Osino on their Twin Hills gold deposit meant that areas still needed to be tested. The Karlsbrunn deposit is open-ended along strike and at depth.
