Solis targets lithium and copper catalysts - ICYMI

Solis Minerals Ltd (TSX-V:SLMN, ASX:SLM, OTCQB:SLMFF, FRA:08WA) earlier this week commenced diamond drilling at its wholly owned Mandacaru Lithium Project in Brazil, marking the start of a 10-hole, 2,000-metre campaign targeting a substantial lithium-caesium-tantalum pegmatite system.

CEO Mitch Thomas said the company had progressed rapidly since announcing the acquisition of its Brazilian project package in late April. He noted that Solis Minerals had gone “from acquisition to starting drilling” in a little over two months and was “moving at pace and very excited to see what this program delivers”.

The campaign is testing an approximately 800-metre pegmatite corridor mapped at surface. The holes are designed to assess the continuity and geometry of the pegmatites and their potential to contain spodumene mineralisation at depth.

Drilling is expected to reach depths of about 150 to 200 metres, with fresh rock anticipated from around 30 to 50 metres below surface. Thomas said the extensive surface exposure had allowed the company to position drill pads efficiently and establish two principal drilling fences across the most prospective areas.

Mandacaru lies in the Araçuaí Lithium Valley in Minas Gerais, a region that hosts established lithium operations and advanced development projects. Thomas described Mandacaru as Solis Minerals’ highest-priority lithium target.

A key near-term catalyst will be the release of drilling observations and assay results as the program progresses over an estimated two to three months. A further Brazilian catalyst could come from Campo Grande, located approximately 18 kilometres away, where the company has identified a pegmatite swarm and is considering a follow-up drilling campaign.

Solis Minerals is also preparing to restart copper exploration in Peru. The company owns the Cinto Copper Project and can earn up to 100% of the Cucho Copper Project, with all required government drilling approvals now received.

The board has approved an initial program of up to 2,500 metres at Cinto, where surface mineralisation, oxidised copper and geophysical anomalies have been identified. The commencement of that campaign represents another potential catalyst and would give Solis Minerals simultaneous exposure to lithium drilling in Brazil and copper drilling in Peru.

Thomas said the company was well funded, with more than $6 million available, and expected “lots of news flow” during an active second half of the year.

Interview highlights

• Solis Minerals has commenced diamond drilling at its 100%-owned Mandacaru Lithium Project in Brazil.
• The company advanced from announcing the acquisition to beginning drilling in a little over two months.
• The initial program comprises approximately 10 holes for a total of 2,000 metres.
• Drilling will test an approximately 800-metre lithium-caesium-tantalum pegmatite corridor and assess the potential for spodumene mineralisation at depth.
• Holes are planned to reach approximately 150 to 200 metres, with fresh rock expected from about 30 to 50 metres below surface.
• The drilling campaign is expected to take around two to three months.
• Mandacaru is Solis Minerals’ highest-priority lithium target within its Brazilian portfolio.
• Campo Grande, about 18 kilometres from Mandacaru, is emerging as a second potential drilling target after the identification of a pegmatite swarm.
• In Peru, Solis Minerals holds the Cinto Copper Project outright and can earn up to 100% of the Cucho Copper Project.
• All required government approvals to drill the two Peruvian projects have been received.
• The board has approved an initial diamond drilling program of up to 2,500 metres at Cinto.

Proactive: Solis Minerals has commenced diamond drilling at the Mandacaru Lithium Project in Brazil. Joining us to discuss the campaign and what comes next is CEO Mitch Thomas. Mitch, good to see you. Can you talk us through the drilling campaign and what it is targeting?

Mitch Thomas: We are very proud to have announced that drilling has commenced at the 100%-owned Mandacaru Lithium Project in Brazil.

As a reminder for shareholders and stakeholders, we announced the acquisition of this large project package from Rio Tinto in late April. We then completed work on the ground and finalised the necessary documentation.

In a little over two months, we have gone from acquisition to the start of drilling. We are moving at pace and are very excited to see what this program delivers.

Proactive: You have advanced the project quickly. What makes Mandacaru so attractive?

Mitch Thomas: I will start with the location. Mandacaru is in the Araçuaí Lithium Valley in Brazil, which is a hotspot for hard-rock lithium mining and exploration in South America.

Brazil is also where members of the team had success with Latin Resources and its Colina project.

Through our recent acquisition, which covers more than 90,000 hectares, we have a selection of projects and targets. I recently spent about a month in Brazil and visited most of them. Mandacaru is our most advanced and attractive lithium target.

The rocks at surface have a similar profile and geological signature to the Colina project. We are seeing large, crystallised quartz and other indicators associated with a strong lithium-caesium-tantalum system.

Mandacaru is the number-one target across our portfolio, so it is exciting to have drilling underway.

Proactive: What does the drilling program involve?

Mitch Thomas: The board has approved an approximately 10-hole drilling program for about 2,000 metres. We are targeting depths of roughly 150 to 200 metres to test the fresh rock.

At Mandacaru, we have an approximately 800-metre-long lithium pegmatite corridor at surface. The team has been mapping it during the past two months.

The objective is to define the potential for spodumene crystallisation at depth. We expect to reach fresh rock from approximately 30 to 50 metres below surface.

The extensive pegmatites exposed at surface make it easier and more efficient to position the drill holes and design the program.

We have established drill pads at selected locations around the most prospective rocks and lithium-caesium-tantalum indicators. We have also designed two main drilling fences to provide good coverage across what we consider the most attractive pegmatites.

The rig is expected to drill about 50 to 80 metres per day, allowing for movement between pads. We expect the 2,000-metre program to take about two to three months.

Proactive: Mandacaru is not the only project you are advancing. What other milestones should investors watch?

Mitch Thomas: The aim is to give shareholders as many opportunities for exploration success as possible.

In Brazil, Mandacaru is the number-one target, but Campo Grande is a close second. Our confidence in that target has increased significantly during the past month.

Campo Grande is about 18 kilometres from Mandacaru. Our team has identified a pegmatite swarm that was not discovered during Rio Tinto’s earlier soil program. The rocks are very interesting and show a geological signature similar to what we saw at Colina.

We are developing Campo Grande as a strong second drilling candidate. It could be drilled after Mandacaru or, in a success case, in parallel.

Brazil therefore provides several attractive opportunities in lithium.

Peru has also been a mainstay of our portfolio for the past few years, and copper is an important metal for the company to have exposure to.

We hold the Cinto Copper Project outright and can earn up to 100% of the Cucho Copper Project. Both are now fully permitted for drilling, with the necessary government approvals received.

The board has approved an initial diamond drilling program of up to 2,500 metres at Cinto. This is our first Peruvian target, and drilling is expected to commence during the quarter.

Cinto has copper mineralisation at surface, including high-grade samples, broad mineralised areas, extensive oxidised copper and geophysical anomalies identified through induced-polarisation work.

It is also located close to three large operating copper mines.

Our intention is to drill in Peru in parallel with the lithium program in Brazil, increasing the number of opportunities for exploration success. It will be a busy third quarter and second half of the year, with updates also expected from our other projects.

Proactive: What are the main investment takeaways for Solis Minerals?

Mitch Thomas: The first is the company’s exposure to lithium and copper in regions that have demonstrated the ability to supply those metals to market.

The company is also well funded. We raised approximately $6 million and currently have more than $6 million available. We monitor every dollar carefully so that as much funding as possible goes into the ground.

We are entering a very active exploration period with strong targets. Lithium drilling is underway at Mandacaru, and drilling in Peru is expected to begin shortly.

There should be considerable news flow, and the company will continue working at pace. We believe this will be an exciting period for shareholders, and I look forward to providing further updates over the coming months.

Proactive: We will speak again as the programs unfold. Good luck with everything currently underway, and thank you for your time.

Mitch Thomas: Thanks very much.