OzAurum Resources bolts on Brazil lithium to its portfolio

OzAurum Resources (ASX: OZM) has become a dual commodity company by acquiring the Linopolis Jaime lithium deposit in Brazil’s Minas Gerais state.

Grades of up to 7.36% lithium oxide have been reported from the ground, which has been mined intermittently over the past 50 years by the vendor’s family and other artisanal miners.

In that time, mining has produced tantalite, beryl, feldspar and the crystals tourmaline and brazilianite.

Linopois Jaime is located on what the company describes as a strategically held area with more than 20 lithium-caesium-tantalum (LTC) bearing pegmatites.

Brazil is fast becoming Tier-1 hard rock lithium player

OzAurum chief executive officer and managing director Andrew Pumphrey said this acquisition is an ideal opportunity for the company.

It will now have strategic lithium projects as well as two gold projects in Western Australia – Mulgabbie and Patricia.

“Brazil is fast becoming a Tier 1 hard rock lithium producing jurisdiction in the world,” Mr Pumphrey added.

Crystals rarely seen in lithium deposits

The average spodumene grade of 6.94% lithium oxide has been confirmed with a seven foot-plus wide spodumene zine consisting of at least 20% volume coarse grade spodumene crystals up to 1m in length.

Coarse spodumene crystals are rarely seen in lithium deposits, says OzAurum.

Two of the few places they are found is the giant Greenbushes mine and the Mt Marion lithium deposit.

There has been no previous exploration for lithium at Linopolis Jaime.

However, a large-scale underground pegmatite mine is operating on the western boundary of Linopolis Jaime.

Applying for more ground

OzAurum has lodged applications for 19,700 hectares of additional exploration licences in the area and located within 65km of Linopolis Jaime.

The company says this ground is considered to be highly prospective for lithium discoveries, as it sits on a southern extension of a known LCT pegmatite belt.

An exploration strategy is at present being planned with the company expecting to undertake geological mapping, soil geochemistry and diamond drilling.