Prospect Resources wants to commercialise the Omaruru Lithium Project to unlock its longer-term value as lithium markets improve.
The Omaruru Lithium Project, comprising EPL 5533, covers 132 square kilometres around the Wilhelmstal village, east of Karibib in Namibia.
Prospect Resources became the 100% owner of the Omaruru project in March 2024 after acquiring the remaining 60% stake from Osino Resources’ subsidiary, Richwing Exploration.
The company announced in July 2024 that it was considering selling the Omaruru lithium project once the market improves.
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.
The company had earlier 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.
Prospect Resources also significantly reduced cost allocation at the Omaruru project and undertook desktop studies over the next 12 months.
Prospect Resources has changed its mind and wants to pursue commercialisation strategies to unlock the project’s longer-term value as lithium markets improve.
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According to its latest quarterly report, Prospect Resources has been re-assessing its priorities at Omaruru, free of the original earn-in obligations of the preceding JV Agreement with Osino Resources.
Exploration activities have ceased with expenditure scaled back to minimum holding commitments. Consequently, the company is pursuing commercialisation strategies to unlock the project’s longer-term value as lithium markets improve.