ASX-listed graphite exploration junior Volt Resources has substantially completed its diligence enquiries on the Luiri Hill gold project and is progressing to completion, the company reported in July.

The project is located in south-central Zambia, 120 km north-west of the Zambian capital of Lusaka. The project comprises one large-scale exploration licence and a mineral processing licence covering 31.38 km2.

This is a significant step forward for Volt’s gold business strategy with the updated Mineral Resource estimate confirming Luiri Hills as a quality gold project with outstanding economic potential, Volt MD Trevor Matthews noted in the July release.

“Combined with the numerous gold bearing stockpiles and local exploration potential, the mineral resource estimate provides the platform for early gold production based on the significant amount of study work already conducted for the Luiri Hill gold project.”

Mining Weekly previously reported that, under the terms of the proposed agreement, Volt would issue the two vendors, Cupriferous Resources and Bukimo Mining, with A$3.75-million in fully paid ordinary shares along with A$250 000 in cash within 30 days of settling the agreement.

Additionally, in May, Volt Resources inked a binding term sheet to acquire an 85% interest in the Luiri Hill gold project through an acquisition of an interest in each of Cupriferous Resources and Bukomo Mining. Volt’s Zambian partners would continue to retain a 15% ownership in the project and remain actively involved in the funding and development of the Luiri Hill gold project.

Cupriferous Resources is the holder of Large Scale Exploration Licence No. 23009-HQ-LEL, which covers an area of about 31 km2 in south-central Zambia. Bukomo Mining and Cupriferous jointly hold Mineral Processing Licence No. 20943-HQ-MPL, which falls within the Cupriferous licence area.

“Volt has already obtained the necessary approval from the existing licence holders to access and obtain information regarding the Luiri Hill gold project from the Zambian government,” the company stated.

“As a shareholder, I am excited about the opportunity for Volt to develop its world-class graphite business in Tanzania, combined with the potential to become a gold producer in Zambia in the near future,” Volt chairperson Asimwe Kabunga added.

“The board is working with the management team to realise our goal to transform Volt into a diversified mineral producer.”

Volt is currently focused on the exploration and development of its wholly owned Bunyu graphite project, in Tanzania, as well as the creation of a new gold exploration and development business which will leverage the company’s existing and extensive networks in Africa.

The Bunyu graphite project is ideally located near to critical infrastructure with sealed roads running through the project area and ready access to the deep-water port of Mtwara, 140 km from the project. In 2018, Volt reported the completion of the feasibility study into the Stage 1 development of the project.

The Stage 1 development is based on a mining and processing plant with a yearly throughput rate of 400 000 t, which will produce an average 23 700 t/y of graphite products.

A key objective is to establish infrastructure and market position in support of the development of the significantly larger Stage 2 expansion project.

Additionally, in July 2020, Volt completed the acquisition of the Guinea gold projects which comprise six permits in Guinea, West Africa, with a total area of 388 km2. The project is located in the prolific Siguiri basin which forms part of the richly mineralised West African Birimian gold belt.