Adelong Gold secures key lithium exploration permits in Brazil’s Lithium Valley
In a game-changing move, Adelong Gold Limited (ASX:ADG) revealed its acquisition of a 100% interest in three applications for lithium exploration permits situated in Brazil’s globally renowned ‘Lithium Valley’ in Minas Gerais. This acquisition agreement, signed with Brazilian native Rafael Mottin, sets Adelong Gold on a strategic path within a mining-friendly region that’s significant for its hard-rock lithium spodumene deposits.
‘Lithium Valley’ is not just any region. It represents the entirety of Brazil’s officially recognised lithium reserves and is rapidly becoming a prime lithium-producing hub on the global map. Speaking on this milestone transaction, Adelong Gold’s Managing Director, Peter Mitchell, shared, “Brazil’s potential in the global lithium production sector is unparalleled. Our acquisition of three exploration permits in this prime lithium domain means that Adelong Gold is not only strategically positioned for our upcoming exploration ventures but also actively participating in the vast battery metals space. This marks our inaugural venture into Brazil, aligning perfectly with our ambition to diversify our projects.”
Details of the acquisition highlight that Adelong Gold is obtaining mineral rights for applications listed under the Brazilian National Mining Agency (ANM) with specific Exploration Permit reference numbers. Collectively, these permits span an expansive area of 53.17km2 (5,317.15 hectares).
These Exploration Permits, which present substantial promise for hosting lithium-rich pegmatites, cover the Ribeirão da Folha formation, which is part of the historical Neoproterozoic Araçuaí orogeny, positioned close to the fertile granite intrusives of the Salinas Formation. The pegmatite deposits’ unique geology traces back to G4 S-type granites from the Araçuaí orogeny during the monumental Trans-Amazonian event of the Gondwana Supercontinent.
What makes these Exploration Permits even more exciting is that they remain largely untapped for lithium potential, despite preliminary geological analyses indicating favourable attributes for lithium-bearing pegmatites.
Closing the acquisition deal does come with certain prerequisites and involves an initial purchase fee, along with performance-based payments contingent on exploration triumphs. In support of this significant transaction, GBA Capital has played a pivotal role and backs a capital raise in Adelong Gold, with a staggering up to A$1 million expected to be amassed. Notably, the Directors will be injecting A$110,000 into this venture, subject to shareholder consent.