Resource Mining Corporation advances due diligence at Finnish nickel and lithium projects

The company has identified numerous exploration targets from what it recognises as an “extremely prospective tenement package”.

Resource Mining Corporation Ltd is progressing due diligence at Ruossakero Nickel Project in Northern Finland, Kola Lithium Project in Central Finland and Hirvikallio Lithium Project in Southern Finland.

Upon review of exploration data, the company has identified numerous exploration targets from what it recognises as an “extremely prospective tenement package”.

In order to further assess the target projects, RMC proposes to conduct field exploration guided by results of a report from Skapto, specialists in geology and geophysics who conducted the review.

“Extremely prospective regions”

RMC executive chairman Asimwe Kabunga said: “Guided by the Skapto Report into the Target Projects, we are excited to now be preparing the initial field exploration program to further our due diligence activities.

“The findings from the Skapto Report and broader due diligence data review have confirmed the extensive presence of lithium and nickel targets within each tenement and we are excited to continue our due diligence exploration works within these extremely prospective region”

Data review summary

In July 2022, the full exploration data file for all Finland projects was purchased from the Geological Survey of Finland (GTK), and the review of this data is now complete.

The data has been analysed by Skapto and from this information, numerous exploration targets have been identified within this extremely prospective tenement package.

At Hirvikallio, high-grade lithium values were confirmed through the review and new targets near the Hirvikallio occurrence have been defined.

The extensive nature of the anomalies within the Hirvikallio and Kola tenements has meant that 18 targets have been defined and located within these lithium-enriched regions.

At Ruossakero, the company has confirmed numerous drilled and sampled nickel-copper-cobalt anomalies within the project and has defined 10 targets.

Forward plan

RMC’s fieldwork has commenced to geologically map, sample and test within all of the targets identified by this review.

What’s more, the vendor agreed to an extension of the option period to exclusively conduct due diligence and finalise negotiations, Pro Active Investors writes.

Lithium project caught in Portugal’s red tape

Savannah Resources (AIM: SAV), the company building western Europe’s largest lithium mine, said on Wednesday it shared its shareholders’ frustration regarding the time it has taken Portugal to review its application, but noted it was a political process over which the company had little control.

Chairman Matthew King said the company expected to make further progress at the Mina do Barroso project this year, which would help Europe reduce its dependence on fossil fuels and speed up its “green transition.”

Savannah Resources said it has been two years since it submitted the environmental impact assessment (EIA) for an open-pit mine to Portuguese regulator Agência Portuguesa do Ambiente (APA).

The company filed the study in May 2020 and it was requested to provide additional information a few months later, which granted it a preliminary stamp of approval in April last year.

APA then launched a public consultation on the project, which has faced local opposition, but the watchdog is yet to announce its final decision.

“We passed the second anniversary of lodging the EIA,” King said. “This time last year, we had expectations that the decision would have been received by now but the finalization of the EIA is a political process over which Savannah has little control.”

The company acquired a 75% interest in Mina do Barroso in May 2017, maintaining a fast paced development approach since. January’s snap parliamentary election in Portugal, King said, had impacted the timing of the assessment as meetings with government officials were postponed.

Europe’s first

Mina do Barroso open pit lithium mine would be Europe’s first significant producer of spodumene, a hard-rock form of the battery metal.

The project holds a resource estimate of 27 million tonnes of lithium with over 285,900 tonnes contained Li2O, at an average grade of 1.06% Li2O, which the company believes to be enough to supply a “material proportion” of Europe’s lithium demand over the coming decades.

The mine will also yield a feldspar and quartz co-product used in the ceramics industry, which will be sold to customers locally and in neighbouring Spain.

Recent results from the latest phase of metallurgical test work program at the mine highlights the potential for lower capital and operating costs than those originally estimated.

Portugal, already Europe’s top lithium producer, accounts for about 11% of the global market, but its output is entirely used to make ceramics and glassware. That’s why Europe relies on lithium imports from Latin America’s “Lithium Triangle,” as well from Australia and China, Mining writes.