FULL DISCLOSURE: The Deep Dive is long the equity of Steadright Critical Minerals.
Steadright Critical Minerals (CSE: SCM) has increased its focus on Morocco, announcing this morning that it has entered into a memorandum of understanding to acquire a historic polymetallic zinc-lead-silver-copper-gold mine in the country, referred to as the Goundafa Mine.
The historic mine last operated from 1926 through to 1956, with operations ceasing due to political changes following Moroccan independence that year. While full production numbers aren’t available, Steadright indicated that in 1920, 2,000 tones of ore was recovered with average grades of 22.14% zinc and 11.31% lead, while by 1956 320,000 tons of material was recovered.
The Goudafa Mine is said to be an early-stage polymetallic exploration project, covering 1,600 hectares within the High Atlas Mountains of Morocco. The project, which is fully permitted and holds a Mining and Environmental Production License, is focused on a series of steeply dipping mineralized veins that contain copper, zinc, gold, lead and silver and are exposed at surface. Minimal artisanal mining has occurred on site.
A 2022 non-NI 43-101 compliant geological report meanwhile identified that conceptual resources of up to 6.62 million tons exists on site, with grades of 2.1% zinc, 1.8% lead, 1.5-2.1% copper, and up to 3.5 g/t gold in select zones. XRF-measured grades from inside the mine meanwhile are said to show strong potential for significantly higher metal grades in some areas that are more consistent with historical mining results.
That estimate meanwhile is said to be limited to 600 vertical meters through the accessible workings, and does not include deeper speculative extensions. The report then goes on to suggest that mineralization could extend a further 800 metres vertically to depths of up to 1,400 metres below surface. Lateral extensions of multiple veins exposed at surface meanwhile have not been included in the estimates either.
“There is a lot of historical information that our Geological team is going through with regards to the due diligence. The historic mine works are very compelling to investigate further considering the potential in this friendly mining jurisdiction of Morocco. The fully permitted historic mining operation with two critical minerals is an ideal place to be while the world races to access and secure these ever-increasing value metals,” commented Steadright CEO Matt Lewis.
Under the terms of the MOU, Steadright has entered into a 3 month due diligence period. The MOU contemplates that Steadright will pay US$8.0 million for the property, along with as of yet undetermined amount of shares that are not to exceed 9% of the company’s outstanding shares. The property is also subject to a 1% new smelter royalty, while a US$500,000 non-refundable deposit is to be made within that due diligence period.
Steadright Critical Minerals last traded at $0.285 on the CSE.
FULL DISCLOSURE: Steadright Critical Minerals is a long investment of Canacom Group, the parent company of The Deep Dive. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.
