By: Earth.com

Major Lithium Exploration Launch in Namibia

SQM, a global lithium leader, and Andrada Mining have commenced a significant drilling program at the Lithium Ridge project in Namibia. This ambitious campaign is designed to cover approximately 9 miles of drilling to determine the depth and continuity of the lithium-bearing ore. The project is strategically located about 22 miles east of Andrada's established Uis tin mine, a proximity that offers considerable logistical advantages by leveraging existing infrastructure and placing the field team within a known mining hub, thereby streamlining operations and reducing initial costs.

Unlocking the Geological Potential

The technical program involves around 120 boreholes focused along a 3.7-mile mineralized ridge. The crews are employing oriented diamond drilling, a sophisticated method that preserves the original orientation of the rock core. This is crucial for accurate structural analysis, allowing geologists to confidently connect surface findings with subsurface geology. The drilling targets are informed by prior field mapping which has already identified new zones containing spodumene, a primary lithium mineral. This visible surface indicator helps optimize hole placement, ensuring the program efficiently targets the most promising areas and minimizes wasted effort.

A Strategic Partnership for De-risking

The venture is strengthened by a strategic, staged earn-in agreement with SQM. This partnership provides essential funding and brings battery supply chain expertise to the project. In the first stage, SQM will fund $7 million of exploration over 18 months to earn a 30% interest. The total commitment can reach up to $40 million, potentially increasing SQM's stake to 50% upon meeting specific milestones. This funding structure limits early dilution for Andrada and aligns both companies on technical decisions, sharing the risks and rewards of development in a market where funding for new lithium projects has become increasingly tight.

Building on Promising Historical Data

The current campaign builds on encouraging historical data. Previous drilling and sampling along the ridge returned high-grade results of up to 2.13% lithium oxide (Li₂O). Critically, metallurgical test work on this material successfully produced a high-grade, 6.8% Li₂O concentrate with strong recovery rates of 76-80%. These results are vital as they demonstrate not only a good grade of lithium in the ground but also that the ore is amenable to processing into a clean, marketable concentrate with low impurity levels—a key factor for potential battery customers.

The Road Ahead and Market Context

The immediate goal of this first stage is to confirm the thickness, grade continuity, and geometry of the deposit, forming the foundation for an initial resource estimate. Andrada's CEO has expressed an intention to fast-track the project toward development. Success in this phase could lead to infill drilling and economic studies. This progress stands in contrast to other Namibian lithium projects that have been paused or faced liquidation due to a cooler market, highlighting the advantage of having a well-funded, strategic partner like SQM to advance in a challenging financial climate.