Brazil

Seven lithium exploration project areas covering 472km² in Brazil’s ‘Lithium Valley’ in mineral rich Minas Gerais State

Latest Announcements:

• 23 July 2024 – Itaipe Brazil – More Highly Anomalous REE and Lithium Assays 
• 3 July 2024 – Highly Anomalous REE and Lithium in Carai Stream Sediments
• 18 June 2024 – Alderan Completes Earn-in Agreement on Salitre Lithium Project, Bahia, Brazil

BRAZIL LITHIUM

Hawk has the right to obtain a 100% interest in seven lithium exploration projects in the mineral resource rich state of Minas Gerais, Brazil.  The projects cover 472km² and consist of 24 granted exploration licences in seven (7) project areas, Curral de Dentro, Minas Novas, Carai, Catuji, Itaipe, Itambacuri and Governador Valadares.

It also has earn-in and option agreements to acquire an 80% interest in the Salitre lithium project consisting of five (5) granted exploration licences covering 66.5km² in northern Bahia state.

Location

The Minas Gerais projects are all located in and immediately to the south of the ‘Lithium Valley’ district in the Eastern Lithium Belt of Eastern Brazil (see Figure 1). Lithium Valley is located approximately 650km north-northeast of Rio de Janeiro and 360km northeast of Belo Horizontale, the Minas Gerais State capital.

Salitre is located in north-central Bahia approximately 420km northwest of the state capital of Salvador.

Hawk’s lithium projects in Brazil

Geology

The lithium deposits of the East Brazil Lithium Belt lie primarily within the Neoproterozic Aracuai Fold Belt which consists largely of metamorphosed sediments and volcanics which have been intruded by younger Neoproterozoic I-type granites and Neoproterozoic to Cambrian age peraluminous S-type granites commonly referred to as G1 to G5.  The lithium deposits throughout the belt are typically associated with pegmatite intrusions in close proximity to G4 granites (see Figure).  Mineral occurrences associated with the deposits include spodumene, beryl, niobium, tantalum, tin and tourmaline, many of which have been identified by the Geological Survey of Brazil.

The Lithium Valley district is highly prospective for new lithium deposits.  Lithium mines operating in Lithium Valley include Companhia Brasileire De Litio’s Mina da Cachoeira underground mine which has production capacity of 42,000t per annum of 5.5% Li₂O spodumene concentrate and Sigma Lithium Corporation’s (NASDAQ: SGML; TSX: SGML) Grota do Cirilo Project which commenced Stage 1 production of 270,000t per annum of 5.5% Li₂O concentrate in 2024.  In addition, a number of companies have recently announced lithium resources within the Lithium Valley district.

Summary geological setting of Parabolic Lithium’s projects within the Lithium Valley district which Hawk acquired in late 2023

The Salitre project area is topographically very flat with poor outcrop and lies to the north and west of the already established lithium bearing districts in Brazil.  Reconnaissance geological mapping has identified highly weathered ‘possible pegmatites’ at four locations in the Salitre South area. The geology as mapped at 1:1 million regional scale by the Brazil Geological Survey is dominated by Cenozoic calcareous sediments with a narrow band of Mesoproterozoic quartz arenites extending NNE from the southwest corner of the licences. A north-northeast trending Neoarchaean greenstone belt consisting of metasediments and felsic metavolcanics which trends into a band of Neoarchaean metamonzogranites and metasyenogranites lies immediately outside the northwest boundary of the area. The north-northeast trend in the geology may represent a major structural trend in the region.

Salitre 1:1 million scale geology plus soil grid and exploration licence boundaries

Exploration

The Minas Gerais projects, which had not undergone historical exploration for lithium prior to Hawk’s exploration, were targeted based on a number of key characteristics including:

• Located within the ‘Lithium Valley’ in Minas Gerais state in Brazil’s Eastern Lithium Belt;
• Proximal to G4 granites based on regional mapping by the Brazil Geological Survey and interpretation of regional airborne magnetic and radiometric geophysical data;
• Proximal to known lithium deposits, pegmatites and lithium pathfinder mineral occurrences;
• Proximal to major district and regional scale structures; and
• Presence of artisanal mining

Hawk completed reconnaissance -200 mesh stream sediment and rock sampling over all of the Minas Gerais projects in 2024.  Key outcomes from the sampling programme include:

• Itaipe, Carai and Itambacuri contain highly anomalous lithium and rare earth element assays in stream sediment samples over a combined total area of more than 30km²
  • Itambacuri, Itaipe and Carai lithium grades range up to 116ppm, 87ppm and 69ppm respectively against background grades of 10ppm at Itambacuri and 5ppm at Itaipe and Carai
  • There are strong lithium-caesium-beryllium-rubidium associations across the assay data sets suggesting favourable geological environments for lithium mineralised pegmatites
  • Neodymium and praseodymium rare earth assays grade up to 72ppm and 23ppm at Itaipe and 128ppm and 39ppm at Carai which are in the range of 5-10 times their background grades
  • Rare earth element correlations are very strong between neodymium, praseodymium, samarium, terbium, gadolinium and dysprosium suggesting a favourable geological environments for rare earth elements

Past exploration on Salitre included reconnaissance geological mapping and two soil grids, one in North Salitre and a smaller grid in Salitre South.  The area is flat lying and highly weathered with ‘possible pegmatite’. Soil samples on both grids have anomalous lithium grades in excess of 100ppm against a background grade of less than 30ppm.  The grids are separated by a 4km zone which is yet to be sampled.

Brazil Exploration Photos

Brazil Geology Mapping