ASX-listed Calidus Resources has spun out a new company, Pirra Lithium, together with Haoma Mining with the aim of focusing exploration primarily on the most prospective lithium ground in the Calidus and Haoma portfolios.
The lithium rights granted totals 1,063 square kilometres with Calidus and Haoma each owning an equal share of the newly formed venture.
Calidus says Pirra’s ground is considered highly prospective for lithium and both parties were eager to see initial exploration results considering the region has not been systematically evaluated for lithium. The company also stated the lack of prior exploration is somewhat surprising considering the favourable geological terrain in the Pilbara region of Western Australia.
Following the formation of the new entity geologists launched straight into action with active mapping of the pegmatites in the area.
Under the terms of the agreement, Calidus will transfer four exploration leases to Pirra and issue Haoma with 1,461,262 Calidus shares.
The spin-out of its lithium prospective ground will allow Calidus to maintain its focus on its well-endowed high-grade and shallow WA gold portfolio whilst still having exposure to the burgeoning lithium market that maintains a surging upward trajectory.
It will now focus on expanding its current 1.75 million gold ounce resource base at its flagship Warrawoona gold project in the Pilbara as the company continues to power ahead with construction of the project’s gold processing facility and related infrastructure that stands at 85 per cent complete.
The Warrawoona gold project has an estimated production rate of 90,000 ounces per annum with a life of mine all in sustaining cost hovering around the $1,290 mark over an initial eight-year mine life.
First gold is expected to be poured in the June quarter of 2022, with the project remaining on time and on budget according to the company.
Calidus Resources’ Managing Director, David Reeves said:
“The current exploration programme aims to confirm and map the extents of known pegmatites within the licences. Whilst this region has been historically identified for the presence of tin-tantalum and associated minerals, Pirra Lithium is the first company to focus on the potential lithium endowment which is exciting for Pirra Lithium. Given the rapid progress we have made, we look forward to providing exploration result updates in the near future.”
With the spin-out of the lithium focused Pirra Lithium maintaining solid exposure to the booming white metal - Calidus is now free to focus 100 per cent of its time and energy on making the seismic shift from successful gold explorer to gold producer during the 2022 calendar year.
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