Lifezone Metals Limited (NYSE:LZM) today announced the official signing of an exclusivity agreement with the Government of Burundi over the globally significant Musongati nickel laterite project, located in Burundi and part of the larger East African Nickel Belt, which also includes Lifezone's Kabanga Nickel Project.
The Musongati Nickel Project has been the subject of material exploration and evaluation activities over the last 50 years, and earlier studies indicate the potential to recover copper, cobalt, gold, platinum-group metals, and scandium as by-products. A 2011 study defined a resource of more than 140 million tons, making Musongati a major, large-tonnage open-pittable resource.
A signing ceremony took place Tuesday in Washington D.C., at the U.S. Department of State, hosted by Deputy Assistant Secretary of State for Central Africa and Commercial Engagement in the Bureau of African Affairs, Sarah Troutman. Lifezone Chief Executive Officer, Chris Showalter, was joined by Burundi's Minister of Mineral Resources, Energy, Industry, Trade, and Tourism, Dr. Hassan Kibeya along with representatives from the United States government and other stakeholders.
Representatives from KoBold Metals were also in attendance, signing a Memorandum of Understanding with Burundi regarding the digitization of the country's geological data. The California-based company uses advanced artificial intelligence and data-driven technology to identify deposits of critical minerals.
HIGHLIGHTS
- The Musongati Nickel Project is Burundi's most important nickel deposit and sits within the world-class NE-SW-trending line of mafic-ultramafic intrusions known as the Kabanga-Musongati Alignment of the East African Nickel Belt, approximately 125 miles (c.200Km) South-West from Lifezone's flagship Kabanga Nickel Project in neighboring Tanzania.
- The exclusivity agreement consolidates globally significant regional deposits within the East African Nickel Belt under a single umbrella, creating an even larger inventory of resources to compete from a grade and cost standpoint with the concentrated supply from Southeast Asia.
- The 14-month exclusivity agreement allows Lifezone to commit its geological and technical expertise and resources to assess the Musongati nickel laterite project within this initial exclusivity phase, as the Company heads towards financial close and a Final Investment Decision on its key Kabanga Nickel Project in neighboring Tanzania.
- The exclusivity agreement initially includes a 30-day scoping phase for Lifezone's in-house team to generate a longer-term plan towards an exploration and economic feasibility program for Musongati, with potential to extend the Exclusivity Period further to encompass the length of this program.
- The initial scoping phase will incorporate data from previous work on this well-known and understood deposit.