Australian-listed miner, MetalsGrove Mining Limited (MetalsGrove), says it is relinquishing its lithium projects in Zimbabwe following disappointing exploration results in its claims at Arcturus and Beatrice, both located in Mashonaland East Province.
The company, which saw its market capitalisation rise to a peak of US$5,61 million in May after announcing the acquisition of these lithium claims in December 2023, has since experienced a significant decline.
As of Monday, MetalsGrove’s market capitalisation had fallen by US$1,94 million following an unfavourable report shared with shareholders on June 3.
In its latest exploration update, MetalsGrove stated that there was no viable opportunity associated with its Zimbabwean lithium claims.
The company also cited the broader weakness in the lithium market as a contributing factor to its decision.
“Towards the end of June, MetalsGrove managing director and CEO, Mr Lijun Yang, undertook a site visit to the two properties and also held discussions with local geologists and other stakeholders with a view to assessing whether anything had perhaps been overlooked,” the company said.
“Given the disappointing geological and assay results, in the absence of any further perceived opportunity, and having regards to the weakness in the lithium market since the projects were acquired, MetalsGrove announced in its June quarterly report that it had taken the decision to undertake a strategic review of these assets.
“Having undertaken that review, MetalsGrove has come to the decision that the prudent course for the company to take is to relinquish its Zimbabwean lithium projects,” it added. Yang revealed that the decision was derived after a “thoroughinvestigation”.
- MetalsGrove ditches lithium mining in Zim
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“Arcturus is located approximately 35km northeast of Harare, and Beatrice is located approximately 55km south of Harare,” MetalsGrove said.
“The projects consist of six new lithium claims encompassing a total area of approximately 510ha (hectares) and one claim in application.”
Both lithium projects were acquired by MetalsGrove under its previous management team in December 2023.
In February 2024, the Perth-based consulting firm, GeoCOM was engaged to conduct an initial programme of geological mapping and surface sampling at both Arcturus and Beatrice.
“Geological mapping consisted of defining several pegmatites although with less detailed geological observations,” MetalsGrove said.
“The initial site visit was primarily focussed on negotiating and acquiring the tenements.
“A total of 104 rock samples were collected, prepared, and submitted to ALS South Africa for analysis, including nine samples from the Beatrice region and 95 from the Arcturus region. More than one-third of the samples collected were from areas outside MetalsGrove's tenements.”
