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MINING | Six Sigma Metals
Turning the Tampia Gold Project into a new gold district in Western Australia
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EXPLAURUM
A new name and a new age commodity focus in Zimbabwe
MINING | Six Sigma Metals
The management team at Botswana Metals was aware of increasing market interest in ‘new age’ commodities long before the decision was made to shift its focus from base metals to battery metals late last year. The wheels of change began to turn when the ASX-listed company began to investigate its Botswana licenses for lithium and tantalum potential and culminated in the adoption of a new name – Six Sigma Metals. This renaming signifies a shift in focus towards battery metals as well as the company’s entry into a new market beyond the confines of Botswana after picking up two new age metals projects in Zimbabwe – the Shamva Lithium Project and the Chuatsa Vanadium Project. Steve Groves, a non-executive director at Six Sigma, explains how the opportunity to have first mover advantage in neighbouring
gold, coal, iron ore, chromium ore, vanadium,
Zimbabwe was too good to turn down,
nickel, copper, lithium and tin.
based on the company’s expertise in Southern Africa and the sweeping changes
However, under former Prime Minister
that have recently commenced in Zimbabwe.
Robert Mugabe’s rule, which lasted from 1980 to last year, Zimbabwe’s economy
The landlocked nation is one of the most
drastically declined and the growth of the
resource-rich regions in the world, hosting
mineral resources sector was severely
the second biggest platinum reserves on
stunted. Now under new leader Emmerson
the planet, along with abundant reserves of
Mnangagwa, the country aims to be ‘open for
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business’ which has paved the way for fresh
“There are still a lot of things to be clarified
investment in the mining industry.
politically and within the investment climate,
The dawn of a new era in Zimbabwe
but we felt if we didn’t do it now we would miss the boat. All things considered it’s an excellent opportunity in a wonderful country
“It is no secret that there is resource potential
and we think it will be a great place to
in Zimbabwe, its just about when the time is
operate.”
right to dip your toe into that market – if you are too slow you’ll miss out and we think now
Although Zimbabwe is still only at the dawn
is the time,” says Groves.
of a new era, all the early signs have been
MINING | Six Sigma Metals
positive for Six Sigma as it looks to establish
Six Sigma has also keenly observed the
mining operations in the country.
smooth progress made by fellow ASX-listed miner Prospect Resources in advancing its
The company’s directors were recently in-
Arcadia Lithium project, which neighbours
country undertaking a site visit and were
the company’s Shamva project.
highly pleased with the level of interaction with the government.
The government’s eagerness to expedite the Arcadia project was particularly pleasing for
“Everyone was very positive about our
Six Sigma.
presence there and welcoming of foreign investment. They now recognise that foreign
In addition, Groves believes that fiscal
investment is required to reinvigorate the
regimes are slowly evolving to benefit foreign
mining industry.”
investors in Zimbabwe, typified by the recent reform to the mining legislation, whereby
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limited to diamond and platinum mines only
The Shamva Lithium Project
and not the entire mining sector.
Located around 65 km Northeast of capital
majority ownership by state entities is
city Harare is Six Sigma’s flagship Shamva “Overall, as a mining and exploration
Lithium Project. The pegmatite dyke hosting
jurisdiction Zimbabwe is fantastic,” says
project was brought to Six Sigma’s attention
Groves. “There is a highly skilled, well-
by non-executive director Joshua Alan
educated workforce and a lot of mining
Letcher, who came on board around the time
experience in-country.
of the company’s switch in focus to battery metals.
“The infrastructure is still good by African standards even though some maintenance
After reviewing several assets in various
is required. Power networks are in place, the
countries, Six Sigma decided to follow
roads are good, bar a few potholes, but it
Letcher’s recommendation, inking a three-
wouldn’t take much to repair them.”
MINING | Six Sigma Metals phase option agreement for the project to
Six Sigma has enacted this three-phased
be executed following an initial due diligence
agreement, along with an extended due
exercise. Due diligence has involved a site
diligence period, to mitigate against risk
visit by company management and a short
in-country so that in the unexpected
drilling programme to test the thickness of
event of things not going well politically
lithium mineralisation and see whether it
or geologically, the company hasn’t over
continues at depth.
committed early on.
all five holes intersected pegmatite dykes,
The Chuatsa Vanadium Project
confirming that lithium mineralisation
The company also recently secured the
continues at depth below surface outcrops
Chuatsa project, located around 140 km
and old workings. In addition, lithium
Northeast of Harare, a vanadium asset which
minerals identified in the drill intersections
was subject to historic exploration by Anglo
included spodumene and lepidolite. Samples
America Prospecting in the early 1960s,
from the pegmatite intersections have been
although all activity at the site ceased in 1964
submitted to an independent laboratory in
when the owners concluded that recovery of
South Africa for analysis.
the resources would be uneconomical at the
Results from this campaign revealed that
time. If the results come back as expected, Six Sigma will execute phase one of the deal
However, the same cannot be said today with
which will see the company take an initial
the vanadium market currently experiencing
30% tranche in the project. The company will
a price boom, thanks to the advent of
then look to advance phase two and a more
vanadium flow redox batteries, which are
dedicated drill programme aimed at defining
used in energy storage and other sustainable
resources in the project.
energy applications.
“We have a minimum target size of 10 million
While there are obvious challenges posed
tonnes (Mt) at an economic lithium grade of
by a project that has been untouched for
pegmatite from the project,” reveals Groves.
over 50 years, Six Sigma has commenced
“Phase two is essentially fleshing out what
reconnaissance work at Chuatsa and is
the scope of the resources are and once
confident in the asset’s long-term potential as
we’ve reached a key decision there we will
a significant vanadium resource.
acquire another 30%. “Despite the historical exploration that has “Once we have established a 10 Mt JORC
taken place there, I consider Chuatsa a virgin
resource we will execute the final part of the
greenfields project,” declares Groves. “We will
deal for the 20% and by then we will be into
use the historical work as a helpful guide of
some sort of feasibility study.”
where we are meant to be looking.
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MINING | Six Sigma Metals
“Our team on the ground is trying to
cobalt or a number of other metals too.
relocate any workings, trenches and drill
When we do our initial testing, we will look
hole locations, then we would go back in
for a full suite of metals.”
and do soil and rock sampling and establish the extent and nature of mineralisation
Looking towards a pathway to production
at surface, before going into trenching or
at the Shamva project, Six Sigma aims to
drilling programmes to try and establish the
model its own timeline on that of Prospect
potential of the vanadium resource.”
Resources, who have managed to break ground at its Arcadia project less than two
In addition, some of the historical workings
years after acquiring it.
on the project have also shown significant copper content existing within the deposit,
Having a neighbouring company that has
which makes for intriguing reading amongst
completed all the hard work with a similar
the management team at Six Sigma.
project is certainly reassuring for the management at Six Sigma. “We will aim to
“There is an interesting suite of metals that
fast track the development as much as we
have already been identified at the site and
can,” reveals Groves.
it’s not unknown for these things to have
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“Within 18 months I expect us to have
With a new name and a new commodity
significant resources with a high level of
focus, Six Sigma means business in the new
confidence in them, and at least commenced
age metals industry, likewise does Zimbabwe
if not completed a feasibility study looking at
as it looks to usher in a new era of prosperity,
a mining operation.�
with a mineral resources sector boosted by foreign investment at the heart of the
The Chuatsa project is more of a long-
nation’s economic revival.
term option given the early nature of the development and the fact that it is likely to be quite a large undertaking, although the company is happy with the initial progress made at the project thus far.
ASX:SIG
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Published by Anderson Murray Media Ltd
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