Highlights
- Assay results from Prospect Resources' Phase 1 RC drill program outline a new, near surface shallow dipping discovery of lithium mineralization in the Southern Brockmans zone and confirmed historical results at Karlsbrunn.
- Highlight intersections from the Phase 1 drilling program include:
- 6m @ 1.30% Li2O from 13m within 14m @ 0.79% Li2O from 13m
- 8m @ 0.99% Li2O from 6m
- 11m @ 0.95% Li2O from 51m
- 7m @ 0.90% Li2O from 17m and 8m @ 0.60% Li2O from 28m
- Drilling undertaken at Brockmans indicates significant prospectivity and scope for identifying larger tonnages of higher-grade lithium mineralization.
- Prospect Resources investing US$1.0M over 12 months to reach a 40% project interest.
- Osino has the option to retain a 49% interest in the project through pro-rata equity contributions and regardless will be carried as a 15% holder in the event of non-funding, until Definitive Feasibility Study ("DFS").
VANCOUVER, British Columbia, March 31, 2023 (GLOBE NEWSWIRE) -- Osino Resources Corp. (TSXV:OSI) (FSE:RSR1) (OTCQX:OSIIF) ("Osino" or "the Company") is pleased to provide an update on its majority-owned Omaruru Lithium Project ("Omaruru" or "the Project") in central Namibia following the completion of a Phase 1 Reverse Circulation ("RC") drill program by Prospect Resources Limited (ASX:PSC) (FRA:5E8) ("Prospect"). Osino entered into an Earn-In and Shareholder Agreement (the "Agreement") with Prospect in Q4 2022 whereby Prospect can earn up to 51% and potentially up to 85% interest in the Project (see Osino press release dated September 30, 2022).
Omaruru is located 20km southeast of Osino's Twin Hills Gold Project for which a DFS is anticipated to be delivered in Q2 2023. Located east of Karibib and spanning 175km2 (see Figure 1), Omaruru is situated near several historical and current lithium mining operations, including Lepidico's Karibib Lithium Project located about 10km to the southwest. Omaruru is accessible by road from the sealed B2 National Highway which links the capital Windhoek, 130km the southeast, to the port at Walvis Bay, about 240km further southwest.
Heye Daun, Osino's President and CEO, commented: "We are excited to receive excellent results generated by Prospect Resources' team at the Omaruru Lithium Project. The Phase 1 drilling results confirm and expand the success of the early exploration and drilling programs completed by Osino between 2019-2021 and set the stage for a significant, maiden JORC-compliant resource to be delineated at Omaruru later this year. Prospect is a world-class group with a track record for exploring and developing African lithium projects, evidenced by the team's previous success selling the Arcadia lithium project in Zimbabwe for approximately US$378M cash in 2022. Our Earn-In agreement provides Osino shareholders with continued exposure to the growing scope and excellent upside potential of the Omaruru Lithium Project."
Project Background
Omaruru contains more than 65 known and mostly zoned pegmatites which belong to the Lithium-Caesium-Tantalum (LCT) family of rare-element pegmatites. These pegmatites occur within an area known as the Karibib Pegmatite Belt, one of five major pegmatite districts in the Damara Belt.
Figure 1: Omaruru Lithium Project location relative to the Twin Hills Gold Project and other mines and deposits in the area
A number of pegmatites within the Karibib Pegmatite Belt have produced lithium in the past, including Lepidico's Karibib Lithium Project which is focused on the Rubicon and Helikon pegmatites.
Historically, small-scale production from the Karlsbrunn and Brockmans pegmatites located on the Project produced lithium minerals (mainly lepidolite, petalite, amblygonite and spodumene), as well as beryl. Exploration in the vicinity of the Project has generally been for gold, and companies such as Anglo American and Helio Resources Corp. explored the area intermittently prior to 2015.
Osino undertook an initial evaluation of the lithium potential of the Project from 2019-2021. This work included mapping, rock grab sampling and a 16 hole (1,942m) RC drill program in 2020. The drilling highlighted remaining potential at the Karlsbrunn pegmatite in particular, with a number of intersections of 5m or more at grades in the range of 1-1.2% of Li2O. Other drilling and surface sampling indicated lithium mineralization associated with most of the other pegmatites on the Project.
Karlsbrunn Deposit Phase 1 Drilling Program
Significant intersections returned from Prospect's Phase 1 Drilling Program at the Karlsbrunn deposit include:
- 8m @ 0.99% Li2O from 6m
- 11m @ 0.95% Li2O from 51m
- 10m @ 0.88% Li2O from 35m
- 10m @ 0.82% Li2O from 15m
- 11m @ 0.80% Li2O from 35m
These results show robust lithium grades and pegmatite widths across the deposit and are broadly in line with the initial drilling at Karlsbrunn completed by Osino in 2020.
Prospect also completed detailed sampling of several extensive underground adits at Karlsbrunn which pass laterally through the deposit at several locations. The adits were developed historically to extract petalite and gemstones from the pegmatite, including beryl. Assays from sampling of these adits are pending. These pending results, along with the surface RC drilling results outlined above, are expected to contribute to the estimation of a maiden JORC-compliant Mineral Resource for the Karlsbrunn deposit later this year.
Brockmans Deposit Phase 1 Drilling Program
Prospect completed its maiden drilling at the Brockmans deposit, which is located just over 4km northeast of the Karlsbrunn deposit. Assay results are highly encouraging with two adjacent holes completed in the southern zone evidencing a new discovery of continuous lithium mineralization.
Significant intersections returned from Prospect's Phase 1 Drilling Program at Brockmans include:
- 6m @ 1.30% Li2O from 13m within 14m @ 0.79% Li2O from 13m
- 7m @ 0.90% Li2O from 17m and 8m @ 0.60% Li2O from 28m
The results from this new drilling at Brockmans indicate a significant thickening of the pegmatite in the south, which is considered a key aspect for the zoning of lithium mineralization in the Karibib District (e.g. Karlsbrunn). Importantly, the limited drilling undertaken at Brockmans indicates significant prospectivity and scope for identifying larger tonnages of higher-grade lithium mineralization within the Omaruru Project
Metallurgical Sampling
Prospect recently collected three, 50kg bulk samples of identified lithium mineralization from the Karlsbrunn, Brockmans and Hillside deposits. These samples are set to undergo early stage metallurgical test work and evaluation in South Africa.
Geochemical Soil Sampling
Prospect completed detailed soil geochemical sampling at Omaruru over eight separate grids in January. Most assays for this work remain outstanding and will be reported separately once all data is received and interpreted.
Prospect's Upcoming Omaruru Exploration Programs
Prospect expects to complete its Phase 1 earn-in to Omaruru during Q2 2023. Upcoming programs during this period are expected to encompass infill and extensional RC drilling at the Brockmans deposit, limited diamond drilling for metallurgical test work purposes at Karlsbrunn, and potentially first-pass, short-hole, RC drilling of regional exploration targets identified from any cohesive geochemical and soil anomalies associated with LCT mineralization characteristics across the region (i.e. elevated lithium-caesium-rubidium-beryllium values).
Earn-in Agreement Terms
Under the Agreement, Prospect may earn-in to up to 40% interest in the Project with a US$1M investment ("Phase 1") and a further 11% interest through a US$560,000 investment ("Phase 2"), totalling a 51% ownership in the Project.
Phase 1 consists of a US$560,000 cash payment to acquire 20%, and a commitment to spend a further US$440,000 on the Project with a 12-month period, to earn an additional 20%. Upon the completion of Phase 1, Prospect may commit to a further US$560,000 within a 12-month period for in-ground exploration to reach 51% ownership.
Upon the completion of Phase 2 and having earned 51%, development funds are to be contributed on a pro-rata basis. If one party fails to contribute their pro rata share, their shareholding will be diluted. The minority shareholder will be diluted down to 15%, at which point their interest shall be free carried until the completion of the DFS.
If Prospect chooses not to proceed after Phase 1 or does not reach more than 50% by the end of a 24-month period (or as extended by mutual consent) Osino will have the right to repurchase Prospect's interest for an agreed sum.
During the next phase of the Agreement ("Phase 3"), if Prospect's spending does not reach a minimum of US$500,000 within the 12-month period following Phase 2, either party will have the option to purchase the other party's interest for an agreed sum.
Osino will benefit from ongoing exposure to the significant potential of the Omaruru Project while remaining focused on the fast-tracked development of our wholly owned Twin Hills Gold Project and Ondundu Gold Project in Namibia.
Qualified Person's Statement
David Underwood, BSc. (Hons) is Vice President Exploration of Osino Resources Corp. and has reviewed and approved the scientific and technical information in this news release and is a registered Professional Natural Scientist with the South African Council for Natural Scientific Professions (Pr. Sci. Nat. No.400323/11) and a Qualified Person for the purposes of NI 43-101
About Prospect Resources
Prospect is an ASX listed company focused on the exploration and development of opportunities in battery and electrification metals in the sub-Saharan African region. The team at Prospect has a proven track record of value creation and systematic de-risking of early-stage projects. Prospect successfully advanced its flagship Arcadia Lithium Mine Project in Zimbabwe from exploration through to resource definition, early-stage economic valuation, definitive studies, offtake agreements and strategic project financing process. Arcadia was discovered by Prospect in 2016 and was ultimately sold to Zhejiang Huayou Cobalt in early 2022, for approximately US$378M in cash.
About Osino Resources
Osino is a Canadian gold exploration and development company focused on the fast-tracked development of our wholly owned Twin Hills Gold Project ("Twin Hills") in central Namibia. Since its grassroots discovery by Osino in August 2019 the Company has completed more than 225,000m of drilling and has completed a suite of specialist technical studies culminating in the recently published Twin Hills Pre Feasibility Study ("PFS"). The PFS describes a technically simple and economically robust open-pit gold operation with a 2.15moz gold reserve, 13-year mine life and average annual gold production of over 169koz per annum.
Osino has a commanding ground position of approximately 8,000km2 located within Namibia's prospective Damara sedimentary mineral belt, mostly in proximity to and along strike of the producing Navachab and Otjikoto Gold Mines. The Company is actively exploring a range of gold prospects and targets along the belt by utilizing a portfolio approach geared towards discovery, targeting gold mineralization that fits the broad orogenic gold model.
Our core projects are favourably located north and north-west of Namibia's capital city Windhoek. By virtue of their location, the projects benefit significantly from Namibia's well-established infrastructure with paved highways, railway, power and water in close proximity. Namibia is mining-friendly and lauded as one of the continent's most politically and socially stable jurisdictions. Osino continues to evaluate new ground with a view to expanding our Namibian portfolio.
Further details are available on the Company's website at https://osinoresources.com/
On Behalf of The Board of Directors
Heye Daun, President & CEO
CONTACT INFORMATION
Osino Resources Corp.
Yaron Conforti, Corporate Development
yconforti@osinoresources.com
+1-604-687-2038
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
Cautionary Statement Regarding Forward-Looking Information
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, without limitation, statements regarding the use of proceeds from the Company's future plans or prospects of the Company, including prospects for economic recoverability of mineral resources. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are necessarily based upon a number of assumptions that, while considered reasonable by management, are inherently subject to business, market and economic risks, uncertainties and contingencies that may cause actual results, performance or achievements to be materially different from those expressed or implied by forward-looking statements. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Other factors which could materially affect such forward-looking information are described in the risk factors in the Company's most recent annual management's discussion and analysis which is available on the Company's profile on SEDAR at www.sedar.com. The Company does not undertake to update any forward- looking information, except in accordance with applicable securities laws.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/dde7d8fe-581a-4d92-8ee8-17985f35efc5
