Gold explorer Gateway Mining moves into lithium with SensOre farm-in deal
Gateway Mining says the Julias target at Gidgee is shaping up as a significant oxide gold discovery.
Gateway Mining (ASX: GML) is hoping to unlock the lithium potential of its Montague gold project in Western Australia after inking an agreement with mining technology company SensOre (ASX: S3N).
Gateway says the deal opens the door for the company to gain exposure to the battery metals market.
SensOre will now be able to explore selected tenements within the Montague project in the Murchison Goldfields for lithium and related by-products.
Gateway will retain all other mineral rights, including precious and base metals.
Technology enhances results conventional exploration results
SensOre’s strategy is to use its DPT artificial intelligence (AI) tool technology to predict the presence of mineral endowments and generate targets for drilling.
This includes providing third party financing to fund exploration and project development.
As SensOre explains it, data from its conventional activities is fed back to the company’s technology division in order to increase the predictive capacity.
It has interests in several projects in the Kalgoorlie region and is also involved in the Desdemona North gold project near Leonora.
Lithium exposure at no cost to Gateway
Gateway Mining managing director Mark Cossom described the agreement as a “fantastic opportunity”, given that his company will gain from lithium development without having to redirect its own resources away from core gold exploration work.
“Gateway retains significant exposure to the upside of this exploration and the ability to increase its ultimate stake should any significant discovery be made,” he added.
Under the agreement, SensOre will pay an initial $1.5 million to earn a 51% interest in the lithium and related by-products within the selected tenements.
Of that sum, at least $750,000 will go into direct drilling spending.
The technology company may earn an additional 29% stake by paying a further $3 million, including at least half of that being committed to drilling costs.
Gateway is free carried to the bankable feasibility study completion stage, with an option to claw back an extra 10% interest in the lithium, which would give it a 30% interest in all.
SensOre is described as a geoscience technology disruptor with an AI tool to generate lithium targets.
To date, no lithium exploration has been undertaken at the Montague project.