Horizon Minerals Limited (ASX:HRZ) has announced the acquisition of 100 percent of two greenfield lithium prospects in Bridgetown from private company, Charter Minerals.
The Share Sales Agreement (SSA) in effect establishes strategic stakes for Horizon in emerging lithium prospects, situated just 20 kilometres away from the globally renowned Greenbushes Lithium Mine in Western Australia.
Figure 1: Horizon’s Projects Location Map
A Strategic SSA
The Company’s acquisition of these new tenements represents a strategic maneuver aimed at securing an advantageous and cost-effective consolidation of substantial ground assets within one of Western Australia’s most promising and vibrant lithium mining zones.
As part of the acquisition agreement, Horizon Minerals will make a cash payment of $75,000 to Charter, and four million ordinary HRZ shares will be issued to the shareholders of Charter.
Despite the area’s favourable prospects, the Bridgetown-Greenbushes package has seen limited contemporary exploration activity.
The Company holds strong confidence in its potential, especially considering its close proximity to the world-renowned Greenbushes Mine operated by Talison Lithium, Albemarle Corporation‘s tenements, and Galan Lithium Ltd‘s (ASX: GLN) Greenbushes South Project.
The recently acquired prospects are situated in geologically favourable terrain, notably within the expansive Bridgetown-Donnybrook shear zone, spanning approximately 20 kilometres in width. This shear zone is home to the massive Greenbushes Sn-Ta-Li deposit and extends an additional 20 kilometres to the south, running adjacent to one of the newly acquired prospects.
Subsequent to securing ownership of these new lands, Horizon has submitted applications for five new Exploration Licences in close proximity to the Charter tenements.
The Company has acquired two projects with existing Exploration Licences (E70/5980, E70/5981) covering a total area of 33 square kilometres, located 5 kilometres north and 10 kilometres southwest of Bridgetown, and has also applied for four smaller Exploration Licences (ELA’s 70/6551-6554) covering a total of 15 square kilometres.
The Bridgetown Greenbushes Lithium Mine
Figure 2: Horizon’s Bridgetown-Greenbushes Project Location Plan
Exploration Licenses E70/5980 and E70/5981 are positioned in alignment with the world-renowned Greenbushes Mine, within the Greenbushes district that falls within the NNW-SSE trending Donnybrook-Bridgetown shear zone, spanning 15 to 20 kilometres in width and extending approximately 150 kilometres in strike length.
The prospects are located within the Balingup Metamorphic Belt which has been intruded by numerous pegmatite dykes including the Greenbushes pegmatite.
The Greenbushes region has witnessed heightened exploration activity in response to the recent surge in lithium demand. This area boasts one of the world’s largest rare metal pegmatite deposits, making the proximity of the newly acquired projects particularly promising for Horizon.
Furthermore, this area is in close proximity to the shear zone housing the Smithfield pegmatite (Sn-Ta) field, where pegmatites of up to 35 metres in width have been documented. The exploration priority for the newly acquired tenure includes the pursuit of potential repetitions of these pegmatites.
Horizon Minerals has emphasised that, despite the acquisition, its primary focus remains on its Kalgoorlie assets and the progression of the Cannon underground mining development.
The acquisition of the Bridgetown tenements was viewed as an exciting and cost-effective addition to the company’s diverse portfolio of commodities, aligning well with its existing strategic focus without necessitating significant changes.
The prospects are currently in the initial phases of exploration, and the company plans to advance its assessment by thoroughly examining all historical GSWA literature related to Bridgetown.
In an effort to expedite lithium exploration potential, Horizon Minerals aims to carry out a reconnaissance sampling and mapping program during this quarter.
Horizon Minerals’ Chief Executive Officer, Grant Haywood, provided his perspective on the acquisition.
“We are very pleased to have acquired and pegged this prospective ground in a world class lithium province with strong potential for pegmatite-hosted lithium mineralisation,” he said.
“We continually assess opportunities to add value accretive projects to the business and moved quickly to secure this low cost opportunity when it presented. These projects build upside and diversification to our portfolio of gold and silver-zinc projects with minimal distraction from our current focus.”
“We will progress these projects in parallel with our commitment to transitioning to a gold producer in early 2024, commencing from our Cannon underground gold project.”
HRZ’s Australian Stock Exchange-listed share price is currently trading at $0.038 (1.00pm UTC+ 8 hours).