Red Rock Resources plc said it expected to own 50% of its Zimbabwe lithium subsidiary which is preparing for small scale trial production at the Tin Hill project in the southeast of the country.
TIN HILL
The property lies 29km northwest of Bikita which is one of two lithium mining centres along with Arcturus.
African Lithium Resources Pvt Ltd (ARL) has interests in both as well as in other areas.
FUNDRAISING
ALR has used its own resources and raised $240,000 followed by a further $80,000 for the development into small scale production of one of its lithium assets.
Red Rock added the conclusion of the latest funding round would result in approximately 50% ownership of ARL.
OPERATIONS
Completion of an environmental impact assessment (EIA) is expected by early February 2023 and site preparation for mineral extraction and sale some two weeks later.
Red Rock said that a further EIA may be prepared for a second operation on its Beatrice site where lithium ore stockpiles and test results were positive.
“The initial plan is to produce and sell lithium ore with a target grade of 2% (1.5%-3%) into the local market, on a pick-up basis and with a seven day sales to payment cycle,” added the company in a statement.
“When the operation has been stabilised, ALR plans to introduce a flotation unit in order to beneficiate the ore to 4.5%-5%, so that it may be sold into the export market.
“There are no immediate plans to delineate a mineral resource estimate.”
TRIAL PRODUCTION
Red Rock chairman Andrew Bell said that there had been previous test production of small mineral deposits of the mineralisation which is from surface and with a simple structure.
“We plan initially to exploit the top 10 metres of the pegmatite, selectively mining for saleable grade as we build experience.
“ALR will be moving into small-scale trial production without having carried out extensive drilling or produced a full feasibility study.
“Our aim is to have once again a cash flow generative project in Red Rock, which will provide an internal source of funds as we move through what has become a difficult market for explorers, and so help to reduce our dependence on capital markets.”