Calidus Resources Limited announced that it has signed a Binding Terms Sheet (agreement) with Haoma Mining NL (Haoma) to fully combine the prospective lithium landholdings of both companies. Calidus and Haoma announced last year that they would each place certain lithium rights and tenements into a new entity, Pirra Lithium Pty Ltd. (Pirra), with a view to listing Pirra on the ASX. Under the Agreement announced today, both companies will vend into Pirra their respective lithium rights not already placed into Pirra.

These additional rights cover several highly prospective tenements in the west Pilbara, including E45/2983, directly along strike from the King Cole lithium pegmatite discovery of De Grey Mining Limited. In addition, Haoma will vend in additional tenements in the West Pilbara surrounding Global Lithium Resources Limited's Archer deposit. Calidus Otways Pty Ltd. will vend in two Exploration Licences in the promising, but highly under-explored, Northampton Inlier in WA's Midwest region.

Under the Agreement, Haoma will hold 60% of Pirra Lithium and Calidus 40%. Pirra Lithium has been assigned tenements and lithium rights across the most prospective lithium ground in the Calidus and Haoma portfolios. These tenements and lithium rights cover 1,303sqkm in the east Pilbara, 89sqkm in the west Pilbara and 289sqkm in the Northampton Inlier.

Across the Pilbara Craton, including at Wodgina, Pilgangoora, and Global Lithium's Archer deposit near Marble Bar, lithium is hosted in pegmatites closely associated with granites of the 2890-2830 Ma Split Rock Supersuite1. Abundant granites of the Split Rock Supersuite are present on or near to tenements for which Pirra Lithium has the lithium rights. In the Pilbara, there is also a strong spatial coincidence between the location of lithium discoveries with historic tin and tantalum fields; for instance, the Archer lithium deposit and the Moolyella tin field, the Wodgina lithium deposit and the Wodgina tin field, and the Pilgangoora lithium deposit and the Pilgangoora tin deposits.

In the west Pilbara region, Pirra Lithium now has the lithium rights to 89sq. km of tenements in the very prospective Tabba Tabba area. One of the tenements covers 10km of strike length along the Tabba Tabba shear zone, which hosts several tin and tantalum deposits and prospects, a lithium pegmatite deposit reportedly identified by FMG, and the King Col lithium pegmatite.

The tenements are proximal to a corridor of highly evolved fertile granites of the Split Rock supersuite. The eastern margin of one of the tenements, E45/2983, lies less than 400m along strike from De Grey's King Col lithium pegmatite discovery. The pegmatite contains petalite, spodumene, and lepidolite, with two diamond holes returning intercepts of 27.3m @ 1.14% Li2O from 12m depth and 11.5m @ 0.64% Li2O from 27m depth2.

East Pilbara Pirra Lithium, on formation in early 2022, had access to tenements totaling 1,063sq. km in the east Pilbara region. With the addition of several more tenements in the Marble Bar area directly adjacent to Global Lithium's Archer deposit (18Mt @ 1.0% Li2O3), the tenement package in the area now comprises 1,303sq.

km. Most of the land package has seen no systematic exploration for lithium-bearing pegmatites. At Spear Hill, immediately east of the Shaw River tin field, lithium pegmatites in the area, although thin, comprise more than 4.3km of strike length8,9,10 and, where drilled, the main pegmatite has been shown to extend for at least 250m down dip11.

The pegmatites are typically accompanied by muscovite alteration of the wall rocks. In the western part of the Spear Hill area, where exposure is poor, scattered float and subcrop of muscovite-altered rocks is common, implying the presence of further pegmatites. Northampton area: In WA's Midwest region, Pirra Lithium has the lithium rights to 289sq.

km of tenements in the very prospective Northampton Inlier. The package comprises one granted exploration licence and one application. High-grade metamorphic rocks in the area are known to be intruded by granites and pegmatites containing beryl and industrial-grade mica, similar to the Gascoyne Province, where successful lithium exploration is underway.

In 2007, West Australian Metals Ltd. identified significant tin anomalies in soil samples using a Niton pXRF12. Although the assays are only indicative, rather than quantitative, they do suggest the presence of much higher-than-background tin concentrations associated with some granite intrusions. The Northampton Inlier also hosts numerous graphite prospects and occurrences.

Future work: Following consolidation of the enlarged tenement package held by Pirra, a strategic review will be carried out to rank the various tenements in terms of their perceived prospectivity. In the west Pilbara, Initial reconnaissance work will be conducted on the tenements to determine the thickness and nature of the regolith, so that the most effective techniques can be employed for initial exploration. This work will include mapping, soil sampling and possible scout air core drilling in areas with thicker transported regolith.

In the east Pilbara, field mapping will continue in the wider area around Spear Hill to identify further lithium pegmatites. Work will also be conducted to identify potential mineralogical and chemical alteration haloes around pegmatites, including potentially blind targets. Stream sediment sampling will also be carried out on several tenements that have seen no prior lithium exploration.

In the Northampton area, reconnaissance work will begin shortly, with initial efforts to include stream sediment sampling on public land to discover more specific areas of possible interest. This will help to identify landowners to approach for land access agreements to conduct mapping and soil and rock-chip sampling. Existing, open-file airborne geophysical data will be purchased and reprocessed to reinterpret the geology and structure on the tenement package.

This is a necessary first step because the Government mapping in the area dates to the 1970s before detailed geophysical data were available.