TIDMATM
RNS Number : 7313U
Andrada Mining Limited
27 November 2023
27 November 2023
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 (MAR) as in force in
the United Kingdom pursuant to the European Union (Withdrawal) Act
2018. Upon the publication of this announcement via Regulatory
Information Service (RIS), this inside information is now
considered to be in the public domain.
Andrada Mining Limited
("Andrada" or the "Company")
Lithium Pilot Plant Produces First Lithium Concentrate
Petalite Off-Take Agreement Discussions Advanced
Andrada Mining Limited (AIM: ATM), an African technology metals
mining company with a portfolio of mining and exploration assets in
Namibia, is pleased to provide an update on the commissioning and
first production at its lithium (bulk-sampling) pilot plant ("Pilot
Plant") along with an update on the Company's lithium strategy.
Highlights
-- Commissioning of the Pilot Plant completed successfully with
the production of 10 tonnes on-specification saleable lithium
concentrate.
-- Production ramp up to 250 tonnes per month planned during
first quarter of the 2024 calendar year ("Q1 CY2024" and
"CY2024").
-- Discussion with glass-ceramics off-taker for supply of
high-purity petalite is progressing well.
-- On-going metallurgical testwork for production of battery
grade lithium hydroxide.
-- Metallurgical testwork progressing to optimise production
from Uis and preliminary investigations on Spodumene Hill and
Lithium Ridge.
-- Lithium exploration drilling campaigns for CY2024 have been
planned for all mining licence areas.
-- Discussions with Strategic Process participants are
progressing. Further updates to be provided in due course.
Anthony Viljoen (CEO) commented
"We believe that our efforts throughout the year have the
potential to place Andrada at the forefront of lithium development
in Africa. The discovery of additional lithium-within the Company
owned Lithium Ridge and Spodumene Hill also underscores the
possibility that Namibia's Erongo region could be a key participant
in the global lithium landscape, with the potential to host a
cluster of significant mines.
The early results from the recently commissioned lithium
processing pilot facility have instilled unwavering optimism. We
are also pleased by the ongoing negotiations with lithium
off-takers that target Andrada's involvement in all downstream
lithium markets, and we look forward to providing further details
as these negotiations progress. Overall, we consider the pilot
plant serves as a crucial de-risking element in the Company's
lithium portfolio, further bolstering our confidence in Andrada's
lithium strategy."
Lithium Pilot Plant
The Company's Pilot Plant is located adjacent to the main tin
processing plant at the Uis Mine. It was successfully commissioned
in October 2023 producing approximately 10 tonnes of concentrate
during the process. The production rate is expected to increase to
250 tonnes per month by the end of March 2024. The initial
objective of the Pilot Plant is to produce sufficient bulk samples
of petalite concentrate within specifications for the premium
specialist glass and ceramics markets. To that effect, the
Directors are pleased with the progress being made on discussions
for a petalite off-take agreement. Secondly, the Pilot Plant is
producing concentrate for metallurgical testwork to determine
appropriate specifications for the lithium battery refinery market.
Finally, by the end of February 2024 , the intention is to produce
concentrate for initial commercial sales into the spot market which
the Directors believe is a realistic prospect for the Company.
Early internal estimates suggest that the petalite concentrate from
the Pilot Plant could be priced between USD1 600 and USD2 200 per
tonne in the current spot market (pricing provided for guidance
purposes only).
Lithium Market and Development Strategy
By initially targeting pegmatites with a higher lithium grade,
Andrada could produce concentrate for all downstream lithium
markets. From January 2024 the Company intends to ramp up its
exploration activities and its metallurgical testwork programme, to
identify additional mineral - rich pegmatites that will enhance
possibilities for additional revenue streams for the Company.
Andrada aims to construct a lithium mining and concentration
facility with a minimum production capacity of 15 000 tonnes per
annum Lithium Carbonate Equivalent("LCE"), which would require
approximately 2.5 to 3.0 million tonnes per annum ("Mtpa")
run-of-mine ore. The long-term production capacity targeted is 50
000 tpa LCE or 10 Mtpa run-of-mine ore. This strategy is
underpinned by what the Directors believe to be a potentially
significant lithium resource within Andrada's mining licences. As
previously announced, the Company is also progressing with
Strategic Process discussions with parties interested in partnering
on its lithium projects, and further updates will be provided in
due course, as appropriate.
Lithium Exploration Strategy
The exploration programmes planned for CY2024 are designed to
enhance the understanding of the mineralisation on all the
Company's mining licences. The exploration team has completed the
plans to advance the resource on the mining licences as
follows:
-- Uis : Resource validation drilling over the Northern and
Central pegmatites clusters to enhance the current MRE
classification of tin, to establish the mineral potential for
lithium and other technology metals.
-- Lithium Ridge : implement a high-density drilling campaign at
the historical TinTan mine area for the development of a maiden
Mineral Resource Estimate and to enhance understanding of the
lithium mineralisation within the high priority pegmatites
identified.
-- Spodumene Hill : undertake a drill programme to delineate the
higher grade spodumene zones within the B1 and C1 pegmatites as
well as the mapped satellite bodies surrounding the main
mineralised units.
The exploration strategy will remain flexible to enable the
Company to investigate any additional mineralisation opportunities
they encounter as they implement the planned programmes.
Lithium Metallurgy
The primary lithium minerals at Andrada's three mining licences
are petalite and spodumene with their distributions varying across
the licence areas. The explored pegmatites on Uis are petalite
dominant whilst on Lithium Ridge and Spodumene Hill they are
spodumene - dominant. Andrada's lithium development strategy
therefore incorporates the production of both petalite and
spodumene concentrates which enables multiple off-take options
suitable for both the industrial (glass-ceramics) and chemical
(battery) concentrate markets. The Company is implementing m
etallurgical testwork to determine the possibility of producing
battery grade lithium hydroxide as well as to determine optimal
production from Uis, Spodumene Hill and Lithium Ridge.
The Company confirms that it intends to publish its interim
results for 6 months ended 31 August 2023 on or around 29 November
2023.
CONTACT
Andrada Mining Limited
Anthony Viljoen, CEO
Sakhile Ndlovu, Head of Investor
Relations +27 (11) 268 6555
Tavistock Financial PR (United
Kingdom)
Jos Simson
Catherine Drummond
Adam Baynes +44 (0) 207 920 3150
Nominated Adviser
WH Ireland Limited
Katy Mitchell/Andrew de Andrade +44 (0) 207 220 1666
Corporate Advisor and Joint Broker
H&P Advisory Limited
Andrew Chubb
Jay Ashfield
Nilesh Patel +44 (0) 20 7907 8500
Stifel Nicolaus Europe Limited
Ashton Clanfield
Callum Stewart
Varun Talwar +44 (0) 20 7710 7600
About Andrada Mining Limited
Notes to editors
Andrada Mining Limited is a London-listed technology metals
mining company with a vision to create a portfolio of globally
significant, conflict-free, production and exploration assets. The
Company's flagship asset is the Uis Mine in Namibia, formerly the
world's largest hard-rock open cast tin mine.
Andrada is managed by a board of directors with extensive
industry knowledge and management team with deep commercial and
technical skills. Furthermore, the Company is committed to the
sustainable development of its operations and the growth of its
business. This is demonstrated by how the leadership team places
significant emphasis on creating value for the wider community,
investors, and other key stakeholders. Andrada has established an
environmental, social and governance system which has been
implemented at all levels of the Company and aligns with
international standards.
-END-
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