Rio option for clear lithium target

Rio Tinto Exploration (ASX: RTX) will drill test a sub-cropping weathered pegmatite unit prospective for lithium (spodumene) and tantalum – exercising a farm-in option with Twenty Seven Co (ASX: TSC) concerning TSC’s northern Rover Project in Western Australia.

Rio can earn an 80 per cent joint venture interest by spending $5 million on non-gold exploration on TSC’s E57/1134 tenement, which it has chosen to do following the completion of an initial exploration program.

“We are delighted that RTX has opted to exercise its option to advance the Rover Project in WA,” Executive Chairman and CEO Mark Caruso said.

Our team is very encouraged by the positive early indications pertaining to potential lithium mineralisation in the northern area of the tenement and we are very much looking forward to RTX’s planned drill program to test these targets. 

Securing the support of a global miner such as Rio Tinto demonstrates the underlying potential of the Rover Project, and we look forward to working closely with the RTX exploration team over the coming months.”

During a six-month option, Rio prioritised follow-up drill testing at the site, which is now expected to begin in early 2023.

Planning for the drilling program is currently being finalised by RTX. 

TSC retains all gold mineral rights in respect of North Rover.

TSC ASX share price is 2c in morning trade.

The Agreement

TSC entered a binding term sheet¹ (“Agreement”) with RTX in March 2022 (see ASX announcement dated 31 March 2022), with RTX paying TSC an initial A$25,000 upfront for an exclusive initial six-month option to explore North Rover for non-gold minerals.

RTX Exploration Summary

RTX’s exploration activities included a review of historical technical information and field mapping in the northern areas of the North Rover tenement that identified a sub-cropping weathered pegmatite unit that may be prospective for lithium (spodumene) and tantalum mineralisation.