- In September 2023, Adelong Gold entered into a binding agreement to acquire a highly prospective lithium exploration tenement package in the prolific ‘Lithium Valley’ of Minas Gerais, Brazil.
- The region is renowned as one of the world’s largest regions for hard-rock lithium spodumene deposits, and represents a key, strategic acquisition for the Company.
- The tenement area hosts advantageous infrastructure including; well-developed highways, hydroelectric power from the grid, water availability and proximity to commercial ports.
- Adelong considers the acquisition to represent an ideal opportunity to expand its project portfolio in a key, demand driven commodity in the massive battery metals sector.
- The Company plans to commence exploration in the coming months and has an existing on-ground team in place.
Adelong has acquired the mineral rights to applications registered under the Mineral Processes of the Brazilian National Mining Agency (ANM), under the following reference numbers. The total Project area applied for is 53.17km2 (5,317.15 hectares) (see Figure 1):
- 832.014/2023, covering 19.39km2 (1,939.73 hectares);
- 832.015/2023, covering 19.31km2 (1,930.89 hectares); and
- 832.016/2023, covering 14.46km2 (1,446.53 hectares).
The three Exploration Permits show strong potential to host lithium-bearing pegmatites.
The Exploration Permits cover the Ribeirão da Folha formation that forms part of Neoproterozoic Araçuaí orogeny and are proximate to fertile granite intrusives of the Salinas Formation. A feature of the area covered by the tenements is the north-east trending structures that commonly host these pegmatite deposits.
The pegmatite deposits are associated with G4 S-type granites that were intruded during the Araçuaí orogeny, which occurred during the collisional episode associated with the Gondwana Supercontinent’s Trans-Amazonian event.
Within this province there have been several major discoveries:
- Sigma Lithium’s (NASDAQ:SGML) Grota do Cirio Deposit1: 94.2Mt @1.45% Li2O
- Latin Resources’ (ASX:LRS) Salinas Project – Colina Deposits2: 45.2Mt @1.34% Li2O
- Lithium Ionic’s (TSX.V:LTH) Itinga Project – Bandiera Deposit3: 19.4Mt @ 1.42% Li2O
The Exploration Permits being acquired are largely unexplored for lithium, with a review of the regional and local geology suggesting the area has attributes of good potential for hosting lithium bearing pegmatites.
Brazil is a Tier-1 Mining Jurisdiction
- Tier 1 Mining Jurisdiction: Accounts for in excess of 30% of global iron ore production.
- Major Exporter: Leading exporter of lithium, tin, and manganese with substantial reserves of gold, nickel, bauxite, and niobium.
- Rare Earth Mining: Biggest miner of rare earths outside of China.
- Pro-Mining Culture: Attracts significant foreign investment in the mining industry.
- Tier-1 Destination: Strong track record of successful mining projects.
- Economic Impact: Mining sector is a top-three contributor to the 10th largest economy in the World.