FREE DAILY STOCK MARKET NEWS

FREE DAILY STOCK MARKET NEWS

Perpetual Resources’ Discovery of Pegmatitic Veining in Exploration Permits

12 September 2023 13:01

Perpetual Resources Limited (ASX: PEC) is making significant strides in its quest to tap into Brazil’s burgeoning lithium market, as the Company recently announced promising findings from its due diligence efforts related to lithium (spodumene) exploration permits in the Minas Gerais region of Brazil, which suggest substantial potential for valuable mineralisation and add momentum to Perpetual’s ongoing exploration endeavours in the region.

CKgNmx1naXFSHOq9?auto=format%2Ccompress&fit=max&h=800&q=75&s=eaadcc30b356073ea5ef63f1da9980d5

Figure 1: Location of the various prospects under option, proximal to Sigma Lithium, in Minas Gerais, Brazil.

Location Matters

One of the key attractions of the exploration permits acquired by Perpetual is their location within the renowned “Lithium Valley” of Brazil.

This area has gained recognition as a hub for spodumene resources, aligning with the Company’s strategic vision of capitalising on lithium’s increasing demand in the global market. The geological setting of these permits is similar to that of Tier 1 lithium resources in the region, further enhancing their appeal.

Successful Reconnaissance Site Visits

As part of its due diligence process, Perpetual conducted a thorough reconnaissance site visit with the assistance of experienced geological consultants from Target Latin America.

The site visit encompassed large areas of accessible land in each tenement, drone flyovers, and an assessment of logistical and commercial aspects related to potential mining operations.

Artisanal Workings Highlight Potential

One of the most encouraging findings during the due diligence process is the presence of artisanal workings on gemstone-rich pegmatites within Perpetual’s permit areas.

These artisanal operations suggest strong potential for pegmatite-associated spodumene, a valuable lithium-bearing mineral. The chemical composition of these pegmatites indicates favourable conditions for spodumene formation, making this discovery a substantial development in Perpetual’s exploration endeavours.

Furthermore, the historical presence of artisanal workings, although yet to be fully validated by Perpetual, underscores the existing mineral wealth within these pegmatites.

RdSct1xZNIvltfPv?auto=format%2Ccompress&fit=max&h=800&q=75&s=9d12755ae450596a77900d4da9240848

Figure 2: Ponte Nova Prospect showing artisanal gemstone mining infrastructure, local gemstone occurrences and the presence of pegmatitic veining within the permit areas

This historical context strengthens the case for valuable spodumene mineralisation, which significantly reduces the risk profile associated with Perpetual’s exploration efforts in this region.

Host Rock Similarity to Established Mines

Notably, the pegmatites discovered within Perpetual’s tenements exhibit geological characteristics similar to the host rocks observed at established lithium mines in the region, such as Sigma Lithium Corp’s Grota do Cirilo Mine and Latin Resources’ Colina Deposit, with this similarity further substantiating the potential for lithium mineralisation within Perpetual’s tenements.

Strategic Partnership with Invest Minas

Perpetual has taken proactive steps to foster a strategic partnership with Invest Minas, the regional State Government investment facilitation agency.

OXrjKcsB6zptzYZp?auto=format%2Ccompress&fit=max&h=800&q=75&s=8ca2a325ebc6c19337ac97e074b567d1

Figure 3: Members of the Perpetual team with Strategic Advisor at Invest Minas Ana Sullato

Discussions have advanced towards a memorandum of understanding (MOU), which could expedite exploration planning and execution, with this collaboration reflecting the Company’s commitment to building strong relationships within the local ecosystem.

Next Steps and Expansion

With encouraging results from the reconnaissance site visits, Perpetual is now focused on finalising its legal and geological due diligence.

The Company is well on track to exercise its option agreements, demonstrating its confidence in the prospectivity of the permits.

Additionally, Perpetual is establishing a wholly owned Brazilian entity, streamlining operations and strengthening its in-country presence.

Perpetual continues to explore additional acquisition opportunities in the Minas Gerais region, aiming to expand its footprint in this promising lithium-rich territory, with updates on these opportunities to follow as discussions progress.

Perpetual Resources Managing Director Robert Benussi commented since the signing of the option agreements, the Company has moved swiftly to commence a detailed due diligence process across all the permits of interest.

“Based on initial observations from our technical team, we are extremely encouraged by the results, which include confirmation of the presence of pegmatitic veining both within the areas we have under option and in surrounding areas,” he said.

“This confirms our view that Perpetual has secured a low cost and potentially high value entry into the preeminent spodumene region of Brazil.”

“Once we formally resolve to exercise the options, which looks likely, Perpetual aims to move rapidly into a structured exploration program across all the permits, with the hope of locating more significant pegmatite occurrences of commercial scale.”

PEC’s Australian Stock Exchange-listed share price is currently trading at 2 cents (12:15pm UTC+ 8 hours).

MORE NEWS

The Market Bull Logo

FREE DAILY STOCK MARKET NEWS

Join our mailing list to receive the latest stock market news.

You have Successfully Subscribed!

Share This