Dempsey Minerals Ltd is an Australian based mineral exploration company established to generate shareholder wealth by identifying, acquiring and/or developing mineral projects.
The Company believes that the emerging battery minerals sector provides exceptional upside for investors.
The key focus of the Company is the transaction of February 2018 whereby the Company signed an exclusive option agreement (Option Agreement) with Australian company Blue Sky Lithium Pty Ltd (Blue Sky) to acquire 100% (royalty free) of Blue Sky’s interests in mining tenements located in the world class lithium bearing Hombre Muerto salt flat in the province of Catamarca, Argentina. Blue Sky, through its Managing Director and founder Mr. Juan Pablo Vargas de la Vega, has had a long association in the mining industry in Australia and Latin America and in particular within the lithium sector. Under the terms of the Agreement, if Dempsey exercises the Option it may at its sole and absolute election determine whether to complete the acquisition by way of an asset sale agreement (i.e. by acquiring Blue Sky’s interests in those mining tenements) or by acquiring 100% of the issued capital of Blue Sky (Acquisition).
The mining tenements in which Blue Sky has an interest (together the Project) are located within the South American Lithium Triangle in the Hombre Muerto Basin, one of the most important and prolific salt flats in Argentina and indeed the world. The basin is known to have the lowest impurity levels of any producing Salar in Argentina and has been in production for over 20 years.
Two areas are targeted within the Project; Candelas in the south east and Catalina in the western margin of the basin. Both areas have direct access to the salar including areas shallowly covered by recent alluvium.
At Candelas the target is an approximate 12km long deltaic channel which is thought to be the main access channel for lithium charged waters from source rocks to the south of the basin. The Candelas area adjoins Galaxy’s Sal de Vida project to the south.
The Catalina area hosts ~2.4km2 of salar in the western nucleus of the basin. Both targets have areas of thin alluvial cover with hydrogeological assessment indicating the potential for lithium charged brines existing below this cover.
Should the Company exercise its option and proceed with the Acquisition in accordance with the Option Agreement the Company intends to conduct surface testwork, geophysics and secure government permits to drill the tenements with the aim to estimate a maiden JORC resource as soon as practicable. In addition to the potential for near term production from the project, laboratory scale testing the potential to directly produce battery grade lithium carbonate will be prioritised with results assisting in the design and commissioning of a larger pilot plant. The Company will also utilise it’s in country experience to further expand its portfolio in the lithium brine sector.