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IRIS Metals Secure Tin Mountain Patented Claim

11 January 2024 10:13
ASX: IR1
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IRIS Metals Limited (ASX:IR1) continues to advance its exploration in the Black Hills, announcing it has achieved a significant milestone by securing the patented claim for the historical Tin Mountain, facilitating its exploration and access to the property for three years, with rights to purchase thereafter.

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Figure 1: Location of the Tin Mountain Mine – 12 kilometres from IRIS’ Beecher Project

Terms of Agreement

The Company has entered into a binding agreement which allows IRIS‘ access and exploration rights on the historic Tin Mountain property for an initial three-year period.

The terms of the arrangement outline IRIS is to pay the Vendor shares to the value of USD $140,000, within the first year, followed by USD $140,000 cash or that number of shares in the second and third year (at election of the Optionor).

IRIS may also elect to exercise the Option by paying a single lump-sum payment comprising the total value of USD $1,000,000 plus the balance of the outstanding amounts.

The Tin Mountain Mine

This agreement for the patent rights at the Tin Mountain Mine demonstrates the Company’s ongoing commitment to its strategy of securing a majority of the historic lithium mines in the Black Hills of South Dakota, making IRIS the dominant holder of lithium BLM and patented claims in the region.

The Tin Mountain Mine was mined for spodumene in the 1940’s and is renowned for hosting very large, visible, spodumene crystals in the walls of the stopes and underground drives.

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Figure 2: Large spodumene crystals present in the walls of the historic adit in the pegmatite.

Historic records indicate six diamond holes were drilled into the Tin Mountain Mine, but the samples were not assayed for lithium at the time. However, the geology logs of these holes document a ‘spodumene-rich’ core and outer-core zones of the pegmatite.

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Figure 3: Schematic interpreted geological cross section of the Tin Mountain pegmatite reproduced from a 1963 geology report published by USGS

IRIS plans to apply for drilling and mining licences over Tin Mountain to commence drilling as soon as possible. The aim of the drill program will be to test along strike and down dip extensions of the Tin Mountain pegmatite, gaining a better understanding of the size of the resource.

The Company’s recent $7.5 million capital raise facilitates its growth activities, enabling expedited exploration, resource drilling and strategic acquisitions aligning with its corporate strategy.

Synonymous Acquisitions

The Tin Mountain property is also located a mere 12 kilometres from IRIS’ Beecher Project, representing a 6.25ha patented mining claim.

The Beecher Project continues to impress, with results released in November from the Company’s 18 hole RC program, indicating a wide and high-grade lithium mineralisation at Longview and Black Diamond.

Tin Mountain, with exploration success, is anticipated to provide additional feed to a centralised processing plant based around the main Beecher Project

IRIS outlines delays in assay results from SGS Canada have continued to frustrate exploration as the Company still awaits results from 12 RC holes.

However, it has been granted approval for an additional 248 drill holes to a 400 metre depth, facilitating its aggressive exploration endeavours.

Company Comments

IRIS Metals Technical Director Chris Connell commented on the development.

“IRIS had identified the Tin Mountain patented property as a valuable project with near term development potential during our first visit to the Black Hills,” he said.

“We are pleased that we now have a binding agreement over this historic lithium spodumene mine. Previous mining of the spodumene was on a very small scale.”

“However, spodumene mineralization is clearly visible in the walls of the stope, whilst historic drill hole data suggests that mineralization is open.”

“The proximity of Tin Mountain to our priority Beecher Project will add to the economics of constructing a central spodumene processing facility near Custer to process ores from the patented Beecher, Edison and Tin Mountain projects, together with additional acquisitions and any future discoveries on IRIS’ BLM claims.”

IR1’s Australian Securities Exchange-listed share price has risen 4.82% and is currently trading at $0.870 (9.50am UTC+ 8 hours).

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