As Six Sigma Metals (ASX: SI6) prepares to kick-off first pass drilling, it has updated its earn-in terms for its Shamva lithium and Chuatsa vanadium-titanium projects in Zimbabwe.
Six Sigma is securing up to 80% of the projects from Mirrorplex under a three-stage agreement, with a three-hole drilling program to begin this month at Shamva to assess the project’s lithium potential prior to committing to the first earn-in stage.
Other variations include Six Sigma reducing the consideration payable to Mirroplex from 50 million Six Sigma shares to 25 million ordinary shares.
Instead, Six Sigma will up its option distribution to Mirroplex by 25 million to 35 million, with the options possessing a A$0.025 exercise price and three-year expiry date from issue.
Due diligence has been extended from 60 days to 116, which gives Six Sigma more time to drill the Bonnyvale pegmatite at Shamva to gain a better understanding of the project’s lithium potential at depth.
The due diligence drilling expenditure will be incorporated into the stage one work program expenditure requirements for the project.
To enable Six Sigma to undertake the drilling, it has completed an environmental impact assessment with Mirrorplex for the Bonnyvale target.
First pass drilling will investigate Bonnyvale mineralisation at depth across areas where 61 surface rock chips assayed over 2% lithium.
The program is scheduled to begin before the end of the month, with a rig already mobilised to site.
King replaces Bulseco
Today’s news follows chairman Edwin Bulseco’s decision to resign from the company’s board to pursue other business interests.
Eddie King will step into Mr Bulseco’s previous role, with a handover to occur in the coming weeks.
‘New world’ metals Zimbabwe portfolio strategy
In May, Six Sigma announced it was acquiring Shamva and Chuatsa in Zimbabwe as part of the company’s dual strategy to lock-in a first mover advantage in Zimbabwe’s new investment friendly climate and build a portfolio of battery metals or “new world” metals projects.
The Shamva lithium project hosts what Six Sigma non-executive director Josh Letcher describes as “walk up ready drill targets”, with rock chip samples assaying up to 3.13% lithium and 3.40% lithium.
The Bonnyvale pegmatite has been defined along 550m of strike, with average widths of 160m. At the pegmatite’s centre, the thickness is estimated to expand to about 250m.
Meanwhile, the company’s other project is the Chuatsa vanadium-titanium asset where historic exploration revealed vanadium pentoxide mineralisation grading 0.80% and up to 7.8% titanium.
Six Sigma executive director has described Chuatsa’s mineralisation as similar to Australian Vanadium’s (ASX: AVL) Gabanintha project in Western Australia which hosts a resource of 179.6 million tonnes grading 0.75% vanadium, 9% titanium and 33.8% iron, in addition to base metal credits.