SOURCE: Macarthur Minerals Limited

Macarthur Minerals Limited

August 15, 2016 08:00 ET

Macarthur Minerals Acquires Lithium Project in Yalgoo Region of Western Australia

VANCOUVER, BC--(Marketwired - August 15, 2016) - Macarthur Minerals Limited (TSX VENTURE: MMS) -

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Macarthur Minerals Limited (TSX VENTURE: MMS) (the "Company" or "Macarthur Minerals") is pleased to announce that it has entered into an agreement to acquire exclusive rights for two granted exploration licenses (E59/2140 and E59/2077) covering an area of 191 square kilometres (47,161 acres) in the Yalgoo region of Western Australia. The acreage on which rights to lithium are acquired is in proximity to the Company's existing Edah Hill lithium acreage and consists of granted exploration licenses allowing immediate exploration for lithium.

Previous drilling activities by other companies on the Yalgoo Acreage has intersected buried pegmatites in 14 drill holes and buried pegmatites for up to 3.5 kilometres down strike of previously mapped pegmatites1,2. In addition, within five kilometres of the Yalgoo Acreage, another company's rockchip samples record significant results for Li2O of up to 1.64% as well as elevated beryllium (Be) (96 ppm), caesium (Cs) (1,840 ppm) and rubidium (Rb) (19,200 ppm)3,4.

David Taplin, President, CEO and Director of Macarthur commented:

"Macarthur Minerals is excited about the acquisition of another lithium project, in the Yalgoo region of Western Australia. In addition, the acreage is granted, allowing for immediate lithium exploration. Historic records indicate that the project is highly prospective for lithium with occurrences of up to 1.64% Li2O on surrounding acreage. The Yalgoo acquisition significantly adds to Macarthur Minerals' hard rock lithium acreage package, which now exceeds 1,869 square kilometres."

Further details of the purchase agreement are set out below.

MEMORANDUM OF UNDERSTANDING

Macarthur Minerals (through its 100% owned subsidiary Macarthur Lithium Pty Ltd ("MLi")) has entered into a Memorandum of Understanding ("MOU") with a private gold company to purchase exclusive rights for lithium and other rare earth minerals on the private company's acreage in the Yalgoo region of Western Australia ("Yalgoo Acreage").

The key terms of the MOU are:

  • Macarthur Minerals will enter into a Purchase Agreement, subject to due diligence, to acquire from the private company exclusive rights to explore, mine and extract lithium and other rare earth minerals on the Yalgoo Acreage.
  • Macarthur Minerals will pay the private company:
    • A$30,000 upon satisfaction of conditions precedent in the Purchase Agreement;
    • A$50,000 upon the first anniversary of the commencement of the Purchase Agreement;
    • A$250,000 upon defining a 5 million tonne JORC resource of >1.2% Li2O; and
    • A$500,000 upon defining a 15 million tonne JORC resource of >1.2% Li2O.
  • Net smelter royalty of:
    • 2.5% for lithium concentrate produced on the Yalgoo Acreage; and
    • 50% of Western Australian Department of Minerals and Petroleum royalty rate for other rare earth minerals, produced on the Yalgoo Acreage.

The Purchase Agreement, although not envisaged, may be subject to regulatory approval.

YALGOO ACREAGE

The Purchase Agreement, although not envisaged, may be subject to regulatory approval.

YALGOO ACREAGE

The Yalgoo Acreage is comprised of two granted exploration licences (E59/2140 and E59/2077) covering an area of 191 square kilometres (47,161 acres). The Yalgoo Acreage is close to the Company's existing Edah Hill exploration licence applications, well serviced by existing infrastructure and only 230 kilometres from the Geraldton Port.

The Yalgoo Acreage sits predominantly on mafic rocks at the northern extremity of the Youanmi Terrane greenstones. The North North-West trending belt is bound to the north, east and west by granitic rocks, predominantly biotite monzogranite. The northern part of the Yalgoo Acreage is a south plunging anticline containing mafic rocks, which have been extensively invaded by granitoids.

The area has been extensively explored for gold and to a lesser extent for industrial minerals from pegmatites. Figure 1 shows historical records for pegmatites, lithium and beryl occurrences and drilling on a portion of the Yalgoo Acreage.

Geological Survey of Western Australia ("GSWA") records identify the Lithium Show Pegmatite and multiple results for beryl minerals on the Yalgoo Acreage(5). The Yalgoo Acreage was previously held by Prosperity Resources Ltd who mapped two pegmatites, one that extends for one kilometre and the other for two kilometres(6). GSWA data adjacent to the mapped pegmatites also records historical drilling has intersected buried pegmatites in 14 holes drilled for gold exploration by Prosperity Resources Ltd(7) and Acacia Resources Ltd(8). Drilling by Acacia Resources Ltd also intersects buried pegmatites for up to 3.5 kilometres down strike of the mapped pegmatites. In addition, there is also diamond drill core for 22 holes (in excess of 2,300 meters) in storage at the GSWA core storage facility in Perth drilled by various companies on the Yalgoo Acreage that is available for immediate assay for lithium.

Recent drilling and rock chip sampling carried out by another company on its tenement within five kilometres from the Yalgoo Acreage has recorded significant results for Li2O up to 1.64% as well as elevated beryllium (Be) (96 ppm), caesium (Cs) (1,840 ppm) and rubidium (Rb) (19,200 ppm)(9),(10). This tenement, held by the other company, has been intermittently mined for lithium minerals.

COMPANY'S STRATEGY FOR YALGOO TENEMENTS

The Company will now hold 20 Exploration Licence Applications and prospective interest in rights to lithium covering a total area of 1,869 square kilometres (461,840 acres) in the Pilbara, Ravensthorpe and the Yalgoo/Edah regions of Western Australia.

The underlying licences on which the rights of lithium are acquired consists of granted exploration licences, allowing for immediate exploration for lithium.

Due diligence will focus on a reconnaissance trip to sample pegmatites revealed by historical records and sampling of core stored in the GSWA facility.

ABOUT MACARTHUR MINERALS LIMITED (TSX VENTURE: MMS)

Macarthur Minerals Limited is an exploration and development company that is focused on identifying and developing high grade lithium and counter cyclical investments that complement Macarthur's capabilities. In addition, Macarthur retains its two iron ore projects in Western Australia; the Ularring hematite project (Indicated 54.46 million tonnes @ 47.2% Fe, Inferred 25.99 million tonnes @ 45.4% Fe - Pre-Feasibility Study) and the Moonshine magnetite project (1.3 billion tonnes @ 30.1% Fe - Preliminary Economic Assessment).

On behalf of the Board of Directors,
MACARTHUR MINERALS LIMITED

"Cameron McCall"
Cameron McCall, Chairman

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Caution Regarding Forward Looking Statements

Certain of the statements made and information contained in this press release may constitute forward-looking information and forward-looking statements (collectively, "forward-looking statements") within the meaning of applicable securities laws. The forward-looking statements in this press release reflect the current expectations, assumptions or beliefs of the Company based upon information currently available to the Company. With respect to forward-looking statements contained in this press release, assumptions have been made regarding, among other things, the timely receipt of required approvals, the reliability of information, including historical mineral resource or mineral reserve estimates, prepared and/or published by third parties that are referenced in this press release or was otherwise relied upon by the Company in preparing this press release. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and no assurance can be given that these expectations will prove to be correct as actual results or developments may differ materially from those projected in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include fluctuations in exchange rates and certain commodity prices, uncertainties related to mineral title in the project, unforeseen technology changes that results in a reduction in iron ore demand or substitution by other metals or materials, the discovery of new large low cost deposits of iron ore, uncertainty in successfully returning the project into full operation, and the general level of global economic activity. Readers are cautioned not to place undue reliance on forward-looking statements due to the inherent uncertainty thereof. Such statements relate to future events and expectations and, as such, involve known and unknown risks and uncertainties. The forward-looking statements contained in this press release are made as of the date of this press release and except as may otherwise be required pursuant to applicable laws, the Company does not assume any obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.

1 Prosperity Resources Limited (2007). Melville Project Annual Technical Report for the period 1/1/06 to 31/12/06.
2 Acacia Resources Limited (1999). Melville J.V Annual Report for the Period 1/1/99 - 31/12/99.
3 Zen Minerals Limited (2009). Yalgoo Tantalum Project Combined Annual Reporting Group C152/2002.
4 Jaloro Pty Ltd (2002). Yalgoo Project P59/1490 and E59/937 Annual Report.
5 http://minedexext.dmp.wa.gov.au/minedex/external/common/appMain.jsp
6 Prosperity Resources Limited (2007). Melville Project Annual Technical Report for the period 1/1/06 to 31/12/06.
7 ibid.
8 Acacia Resources Limited (1999). Melville J.V Annual Report for the Period 1/1/99 - 31/12/99.
9 Zen Minerals Limited (2009). Yalgoo Tantalum Project Combined Annual Reporting Group C152/2002.
10 Jaloro Pty Ltd (2002). Yalgoo Project P59/1490 and E59/937 Annual Report.

Image Available: http://www.marketwire.com/library/MwGo/2016/8/15/11G110496/Images/Figure1-6f0f4288240e9111accc34380bc1eedb.jpg

Contact Information