By Sharyn Macnamara
Sharyn Macnamara (SM) speaks to executive director Gino D’Anna (GD) Askari Metals Limited (Askari) about the company’s targeted exploration activity at its flagship lithium project in Namibia, known for its highly mineralised spodumene-rich pegmatite belt.
Trenching of the key OP pegmatite target revealed a thicker, more extensive zone of LCT-type pegmatites than was previously identified by surface mapping. Supplied by Askari Metals Limited
D’Anna says, “I look to Namibia for lithium as that next frontier out of Africa to drive the requirement for critical mineral exploration and exploitation. And certainly, if the world is going to reach its Net Zero timeframes of 2030 and 2050, we are definitely going to have to be far more aggressive in terms of how we develop and explore new project opportunities.”
Askari has done exactly that in Namibia, following an aggressive mandate not only from an exploration strategy perspective, but also originally from an acquisition viewpoint. The company has capitalised on an “early mover advantage” in the UIS Cape Cross Pegmatite Belt at its UIS lithium project – having identified areas of explorative interest, the company swiftly grew its local footprint strategically, proved the resources, and drilled out and followed through with the most recent trenching campaign in February this year – unlocking the true value potential of the region.
SM: Mr D’Anna, with your 12 years of experience working in mineral exploration and mining sectors across Australia, Africa and North America, can you tell our readers what differentiates this Lithium project in Namibia from those you have been involved in in the past? What have the specific opportunities and highlights been contributing to this differentiation?
GD: When I visited Namibia during the due diligence (DD) phase of our project, one of the things that really stood out for me in this jurisdiction, versus other African countries like Tanzania, Mali, Malawi and Ghana, was the access to key infrastructure not only for exploration purposes but also for the future development of the project into a full-scale mining operation.
Access to a deepwater port such as Walvis Bay offers incredible opportunities, not just to ship product to the Chinese and Asian markets but also to the North American markets and the European NAMIBIA, THE NEXT FRONTIER FOR LITHIUM Sharyn Macnamara (SM) speaks to executive director Gino D’Anna (GD) Askari Metals Limited (Askari) about the company’s targeted exploration activity at its flagship lithium project in Namibia, known for its highly mineralised spodumene-rich pegmatite belt. By Sharyn Macnamara Trenching of the key OP pegmatite target revealed a thicker, more extensive zone of LCT-type pegmatites than was previously identified by surface mapping. Supplied by Askari Metals Limited 22 n African Mining n July 2024 www. africanmining.co.za n EXCURSION market too. So, from both an investor’s perspective and from a developer’s perspective, having the opportunity to diversify our customer base is one of the key opportunities that exists in Namibia, reducing our risk profile right through to production.
Supporting this, the road networks through UIS and all the way down to the coast are accessible 24/7, 365 days a year. Right up front we could see that Namibia offered the right ingredients to ensure success from the start of exploration, to the delineation of the resource, to the scoping study to PFS, and finally to the development of a mine.
Over and above this, Namibia is particularly well-endowed with resources, and perhaps the most startling observation was the underexplored nature of the lithium mineralisation in this businessfriendly jurisdiction, and particularly in the West Cape Cross Belt. Although the area has been known historically for its production of tin and tantalum, for example the Andrada Tin mine in UIS has been operational from the 1960s and Iscor days, the area has been vastly under explored from a critical and battery metals perspective. The shallow concealed deposits were characteristically overlooked by historical explorers, as lithium was not top of mind then. This is where companies such as Askari, utilising modern techniques, such as geophysics, are able to make a real difference in terms of identifying hidden deposits and unlocking the true value of these regions. These significant mapped out pegmatites are in fact spodumene dominant, which is critical for us.
This was an opportunity we identified early on during our DD, and what was so exciting for us at the time was walking through some of the old artisanal mine workings – some of them still operational on a small scale, while others were more expansive and machinery had been brought in to open up the pegmatites – was being able to see the apple green, altered spodumene in the rock wall and the coloured tourmalines. This was a clear indication for us that we were in right mineralised and depositional environment with scalability.
So, the differentiator for us in Namibia was the absolute confidence in understanding that we had fertile LCT-type pegmatites on critical scale with strike extensions and sufficient width in an area that has been historically explored, though not for lithium, but for tin and tantalum. By their very nature, tin and tantalum go hand in hand with lithium. This fact has put Askari in a far stronger and advantageous position compared to having perhaps acquired a licence in a less explored or less well-known pegmatite belt elsewhere in the world.
SM: Can you comment on the ease of doing business in Namibia versus other jurisdictions?
GD: Allow me to draw a comparison here, based on other projects I have worked on in Quebec, for example. Getting amendments made to permits through the Canadian government, which run for finite time, can be a very time consuming, difficult and cumbersome exercise, often involving having to seek reapprovals or extensions. The process in Namibia has been swifter and more streamlined. Although the Namibian government has put strict protocols in place as far as environmental and social governance is concerned, the opportunity there is that companies can work closely with the different government departments which are extremely supportive, in terms of being able to move more aggressively. Once the environmental clearance certificate is obtained, and if the company abides by mine management permits and rehabilitation plans for the exploration and bulk sampling programmes, the government makes it very easy for companies to continue to development phase, rather than having to re-approve or rely on extensions or expansions on approvals. This has enabled Askari to move aggressively.
With the right people in the field in country on our team and the right relationships at the different government department levels, Askari has also been able to seize opportunities –rather than remote controlling our project from a distance. We have six full time geophysicists in country operating 100% focused on Askari and the business at hand.
The Namibian ministry has also been extremely helpful in enabling access to historical exploration data and we have managed to obtain information on mineralisation and downhole lithium intersections on pegmatites that we ourselves as a company have not had to drill ourselves.
The geopolitical risk in working in Namibia is also very low, which adds to the ease of doing business there.
SM: When it comes to other critical resources like water and energy challenges, what are your plans for the future development of the project?
GD: For Askari – being a carbon neutral lithium explorer-comeproducer – Economic, Social and Governance (ESG) issues are high on our list of priorities. Another benefit of operating in Namibia is that solar energy is plentiful. UIS has a very dry climate with terrific access to solar energy infrastructure. There are a number of parties out there that can put solar plus battery infrastructure in place swiftly with additional diesel generators for downtime, so that when the solar is inactive and battery capacity runs out, the thermal or diesel installation kicks in.
Access to water is an issue in Namibia, however we have drilled boreholes and two are operating at sub-70-metres vertical depth. We have therefore been able to access water easily to run our diamond drill rig, core saws and rock cutters. Furthermore, due to the fact that the sub-surface water in UIS can be salty, we are looking at installing small-scale desalination plants. Not only will these be used for the mine site, but this is also infrastructure the community can benefit from long term too. These plants together with the project’s power generating installations can be made available and offered to the community as a post closure operating opportunity.
SM: In your opinion, what will the potential impacts of this exploration project be on Namibia and its people?
GD: A key strategy in operating in a new environment and being an aggressive fast mover in terms of our mandate to acquire and explore in such a rich jurisdiction, is building one’s internal team on the ground. Askari has therefore spent considerable time building our local internal team, and overcoming challenges like finding the right skill set in country in particular. We have therefore employed local Namibian geologists and field technicians, directly addressing the local unemployment challenges in the area we work in.
At this stage of exploration and development of the project, the economic benefits will flow in the form of employment opportunities and the dissemination of skills into the community. We have found the locals to be very receptive to working in an environment such as exploration. A case in point being the recent 5000m trenching campaign across the pegmatite body. There is a very open mindset about mining and mineral exploration in Namibia and the government is also very pro mining. From our perspective, production and the resultant additional job opportunities for the local community are a very strong certainty because the geological risk has been considerably reduced as we continue to explore. Also, from a government perspective in terms of taxes and royalties, the opportunities are many.
SM: You mentioned artisanal mining in the area, is this a potential security risk for Askari?
GD: There is still artisanal activity on site, however the understanding is that this mining is on a very small scale, and it is usually a means to put food on the table for local families. Askari has therefore taken a non-hostile, synergistic approach and invited the artisanal miners to work with us. For instance, we have employed a group of artisanal miners as security personnel, and they help us monitor the activity on our licences. Having been miners, this team is able to ‘sniff out’ lithium-rich pegmatites and has assisted in mapping the area. The impact of this relationship of trust has been quite significant in working with our local community.
SM: Is there advice you could share with other junior miners as to Askari’s winning recipe?
GD: I believe that having the right local team in country to advocate for your project is critical. Although consultants have a part to play, one needs people on the ground fully aligned with the company’s objectives. That is the biggest learning curve that I have experienced, not just with Askari, but with other companies too. We have found that having a local team with boots on the ground is the best way to gain trust in country as well and being able to explore your projects with efficiency from a cost and time perspective.
The right strategic partners are also a vital ingredient to success. Huayou Cobalt – a Tier-1 global lithium battery materials and cobalt materials supplier headquartered in China with a market cap of approximately USD12.8-billion – is Askari’s strategic partner. And what that brings to the table is not just a financing opportunity for the company, but also downstream capabilities. While Askari is exploration centric, Huayou is lithium chemical production focussed.
Furthermore, jurisdiction quality is essential, from a risk perspective. Namibia ranks well in the Fraser Institute rankings and is also positioned well where access to infrastructure is concerned. The right geological environment and low geopolitical risk are extremely important for investors. However, your project also needs to have the right ‘mirror’ – Askari’s project is situated merely 2.5km away from the operating UIS tin mine. We also encompass the Spodumene Hill discovery of Andrada Mine, and we have the extensions of those mineralised pegmatites, both north into our 7345 licence and south into our 8535 licences. This ‘mirror’ suggests, both to us and our investors, that we are indeed operating in and exploring the right geological environment and in the right jurisdiction. We are also very confident that we have the right team to make those discoveries.