Takeover target Essential Metals (ASX:ESS) has been granted a key Mining lease for its proposed Pioneer Dome Lithium Project in Western Australia.
Lease M15/1896 has been granted with a term of 21 years and covers 2,408 hectares, encompassing the Dome North lithium Mineral Resource and the surrounding area where the future mining operation infrastructure will be located.
The Pioneer Dome Lithium Project is highly prospective for lithium-caesium-tantalum (LCT) mineral systems and includes the Dome North Lithium Mineral Resource of 11.2 million tonnes @ 1.16% lithium (Li2O) including 8.7 million tonnes @ 1.23% lithium (Li2O) within the Indicated Category.
Highlights
- The mining lease application, lodged in September 2022, was based on a Mineralisation Report and Supporting Statement prepared by SRK, a geological consultancy.
- The area of the mining lease (M15/1896) encompasses 2,408 hectares, which encapsulates the three deposits that comprise the current lithium Mineral Resource estimate, lithium mineralisation identified in the vicinity of the Resource and land to be utilised for the concentrator plant, waste dumps, tailings storage facility and other mine operation infrastructure and ancillary services.
- The term of the mining lease is 21 years, commencing 16 February 2023.
- The granting of a mining lease is one of the first steps towards establishing an operating mine. Key next steps include the lodgement of a Mining Proposal which includes a mine closure plan. The information for the Mining Proposal is typically generated from detailed feasibility studies and covers technical, environmental, key mining activities, safety and stakeholder engagement.
“The granting of the mining lease is another step along the development pathway for the Pioneer Dome Lithium Project,” Managing Director, Tim Spencer, said.
“In particular, I would like to thank the Ngadju Native Title Aboriginal Corporation, who represent the Ngadju people, the native title custodians of the land on which the Project is located, for their ongoing support for the Project.”
Essential is the target of a proposed acquisition of 100% of Essential by Tianqi Lithium Energy Australia Pty Ltd (TLEA) by way of a Scheme of Arrangement.
