Kazera Global (LSE:KZG) jumped by nearly a quarter to 2p on Friday morning after announcing a better-than-expected mineral resource for two of its major deposits in Namibia.
The investment company announced a maiden JORC-compliant combined total indicated and inferred tantalite mineral resources for the Homestead and Purple Haze deposits of 324,600ts with upside potential. The deposits form part of the Namibia Tantalite Investment (NTI) Mine, in which Kazera holds exposure through its stake in a business called African Tantalum.
The organisation went on to add that strong grades of tantalite were demonstrated across both deposits, with an average grade of 323ppm tantalum pentoxide including 911ppm at Purple Haze. Meanwhile, higher-than-anticipated lithium grades were encountered across both deposits, with an average grade of 4,410ppm lithium dioxide.
All-in-all, Kazera said Homestead’s resources were in line with pre-drill estimates, showing potential for economic tantalite and lithium potential. However, Purple Haze’s resources exceeded expectations with total indicated and inferred resources of 125.5 kt alongside an average tantalite grade of 459 ppm and average lithium grade of 5,259 ppm across the deposit.
The parties developing the NTI mine now plan to add further resources to the project through exploration at Homestead and Purple Haze alongside two additional deposits called White City and Signaalberg.
Kazera’s chief executive Larry Johnson added: ‘We are delighted by these initial results particularly those at Purple Haze where there exists significant opportunity to deliver high quantities and grades of both tantalite and lithium. The initial resource numbers at Purple Haze were ahead of what we initially expected and we look forward to additional resources there and at White City, Signaalberg and through additional drilling at Homestead.
‘With a water supply option, government certified via the Orange River, and a maiden JORC compliant Mineral Resource confirmed, NTI continues to show the capacity to become a long-term mine for stable production. Today’s result represents the first of a number of phases in identifying the total mineralization on the portfolio.’