ASX-listed Plymouth Minerals Ltd. has confirmed an Earn-in and Joint Venture agreement with Valoriza Mineria SLU for the potential development of the San Jose lithium-tin project in Spain’s Extremadura region.
The San Jose Mine is a historical tin-tungsten mine that operated in the 1960’s with subsequent exploration and feasibility studies between 1985 and 1991 focussed on abundant lithium and tin mineralisation. Historical underground mining utilised multiple shafts and adits with a gravity concentration plant used to process the ore on site. The historical exploration and development work included 8,399 m of drilling as well as technical work and feasibility studies indicating potential recoveries of 90% Li and 80% Sn.
Plymouth can earn up to 75% of the project by spending up to €4 million on development, 50% by completion of €1.5 million of technical work and a further 25% through completion of a feasibility study and €2.5 million of expenditure. The aim of the work, targeted to begin in the second half of 2016, is to confirm the findings of the historical studies and bring the historical resources in line with current JORC standards. The project would then continue on a pro-rata funded Joint Venture basis. The agreement is subject to due diligence and is expected to be complete by the end of June.
ITRI View: Plymouth Minerals has previous experience in tin with a controlling interest in the Morille tin-tungsten project, 200 km north of San Jose, and involvement in the development of the UK’s Hemerdon tungsten-tin mine. Lithium mineralisation is present in many tin deposits worldwide; San Jose, Cinovec in the Czech Republic and Taronga in Australia are examples. Should lithium prices continue to surge, tin projects with lithium co-product or by-product potential will become increasingly attractive prospects for development.
