Prospect Resources is contemplating the sale of its Omaruru Lithium Project once market conditions improve.
Situated around the village of Wilhelmstal, east of Karibib, the project covers 175 square kilometers under EPL 5533 tenement.
Richwing Exploration, a subsidiary of Osino Resources, holds the rights to the Omaruru Lithium Project. In September 2022, Prospect Resources signed a shareholder agreement with Osino Resources Corp. to acquire up to 51% and potentially up to 85% interest in the project.
This agreement involved a phased investment, with US$1 million allocated for Phase 1 to earn a 40% stake in Richwing Exploration, followed by an additional US$560,000 for another 11% in Phase 2.
By March 2024, Prospect Resources completed the acquisition of the remaining 60% interest in the Omaruru Lithium Project from Osino Resources for US$75,000 in cash.
However, three months later, the company announced a slowdown in exploration activities pending an internal review of phase 2 drilling data.
Initial findings from the exploration included no significant lithium intersections at Spirit Minor, two promising intersections at the Brockmans deposit from 14 reverse circulation holes, and a substantial intersection at the Bergers series of deposits from 12 reverse circulation holes.
In response to current market conditions, Prospect Resources has significantly reduced cost allocations to minimize holding costs and is focusing on desktop studies over the next 12 months.
In its latest investor presentation, Prospect Resources indicated that the potential sale of the Omaruru lithium asset hinges on improved market conditions.
Historically, exploration efforts at the project primarily targeted its gold potential. Activities included surface soil geochemistry surveys conducted by AGA, BAFEX, and Osino, which identified two central anomalies.
One major anomaly, encompassing the historically mined Karlsbrunn and Spirit deposits, was the subject of a pegmatite-focused 16-hole RC scope drilling program by Osino in 2020.
While several significant intercepts were identified, challenges such as site access difficulties for drilling rigs and Osino’s focus on their Twin Hills gold deposit meant that certain areas still require testing.
The Karlsbrunn deposit remains open-ended along strike and at depth, presenting ongoing exploration potential for the project.
