ASX-listed critical metals and minerals explorer Si6 Metals expects to complete the acquisition of a 50% interest in a portfolio of exploration licences in Brazil from exploration firm Foxfire Metals in early 2024.

Si6 has received shareholder approval and agreed final terms for the acquisition of 50% interest in four projects, comprising 10 exploration licences and about 17 000 ha.

Foxfire will be the manager of the joint venture (JV), with Si6 committed to spend $1-million in the first year of the JV and will free carry Foxfire until completion of a bankable feasibility study.

“Si6 is excited to start an exploration programme initially at the highly prospective Caldera rare earth elements (REE) project nearby significant REE discoveries recently made by Meteoric [Resources] and Viridis [Mining and Metals (VMM)]. The Lithium Valley project is also of equal interest to us as it is located amongst Tier 1 discoveries by Latin Resources and Sigma Lithium to name a few, close to S-Type G4 Supersuite granites that are typically known to host lithium in spodumene-bearing pegmatites,” said Si6 Metals MD Jim Malone.

The Brazilian projects include three highly prospective REE licences, two of which sit amongst Meteoric Resources and VMM's REE projects at the REE-rich Poços de Caldas Alkaline Complex in south Minas Gerais.

Further, these include three lithium licences in the Lithium Valley, north Minas Gerais, which is known to host significant lithium spodumene resources discovered by Latin Resources, SIGMA Lithium and licences recently acquired by Rio Tinto.

“Our first programme at the Caldera Project will start with field reconnaissance, mapping and soil sampling to determine follow-up targets for future auger drilling, and we will update the market about our exploration programmes in Brazil,” he added.

The licences are prospective for lithium, REE, gold, base metals and platinum-group elements, comprising more than 17 000 ha in three different states of Brazil. Seven of the licences are located in the state of Minas Gerais, including five in the Lithium Valley and two in Caldera, two in the state of Ceará, and one in the vastly underexplored state of Amazon.

Si6's initial focus will be on the Lithium Valley and Caldera projects. The Lithium Valley project is among global Tier 1 lithium discoveries or producers, including Latin Resources, Sigma Lithium, CBL, Lithium Ionic, Atlas Lithium and nearby Rio Tinto’s exploration area in the known Eastern Brazilian pegmatite province.

The Caldera project areas are adjacent to Meteoric Resources’ Caldeira project, which has a major ionic adsorption clay REE mineral resource estimate.

Recently, VMM also experienced significant exploration success at its REE Colossus project located nearby in the Poços da Caldas caldera complex in the state of Minas Gerais, Malone noted.

Si6's exploration programme in 2024 will also focus on the Lithium Valley projects targeting lithium in spodumene pegmatites and ionic adsorption clay REE.

The acquisition is scheduled to be completed upon lodgement of transfers of the tenements for registration with the Brazilian mining regulator.

Following completion, Si6 Metals intends to commence an exploration programme in Brazil in early 2024 with activities to focus on the Caldera licences in the state of Minas Gerais adjacent to Meteoric Resources’ Caldeira REE project and near VMM’s Colossus REE project.

The initial scope of work at the Caldera licence will include reconnaissance, mapping, and soil sampling. A follow-up auger drilling programme is planned to start at priority targets.

Also in early 2024, exploration activities will focus on the licences in Minas Gerais located near the Grota Do Cirilo project owned by Sigma Lithium and Colina lithium project owned by Latin Resources, he said.