Marula Mining, through its South African subsidiary Muchai Mining South Africa, has secured a 51% shareholding in Mansena Kruisrivier Cobalt (MKC). This deal, involving Mansena Cobalt, grants Marula access to the Kruisrivier cobalt mine in Limpopo.
The Kruisrivier site spans over 2,340.90 hectares and holds a prospecting right. MKC has applied for a mining permit, which is expected to be issued soon. The mine operated intermittently for over 55 years until the 1930s. Historical records indicate high-grade mineralization, including cobalt, gold, nickel, copper, chromium, zinc, lead, platinum, and silver.
Previous reports show cobalt ore with grades up to 16.67% and gold up to 68 g/t. The site also has historical resources of 733,000 tons of ore with an 8% cobalt grade, down to a depth of 200 meters.
Marula’s due diligence confirmed visible high-grade cobalt mineralization on the surface and in shallow underground workings. These findings show cobalt arsenate deposits with safflorite and erythrite. Assays from the fourth quarter of 2023 reported 8.31% cobalt, 0.81% nickel, and significant quantities of other minerals.
Under the agreement terms, Marula will issue one million new ordinary shares, valued at about £100,000, to Mansena Cobalt. Additionally, they will make a further cash payment of £100,000 after final due diligence. Marula will also cover all costs to complete an updated bankable feasibility study (BFS) and pay a monthly management fee of R100,000 to Mansena Cobalt until the feasibility study is complete.
Within 12 months or upon deciding to mine, Marula will issue another £200,000 in shares and pay a $1.7 million cash fee. The company’s technical team has already completed a detailed review of Kruisrivier, including historical data assessment and site visits.
Under the term sheet, Marula plans to conduct a systematic exploration program. This will confirm historical data and establish a JORC-compliant mineral resource. The exploration will involve satellite multispectral analyses, airborne geophysics, surface and underground rock chip sampling, resource drilling, and core analyses.
The BFS will include detailed process mineralogy, extractive metallurgy, and process development studies, considering either pyrometallurgical or hydrometallurgical processing routes. Marula aims to complete these technical studies within the next 12 months.
This acquisition strengthens Marula’s strategic battery metals portfolio in Africa. The company emphasizes the importance of this high-grade cobalt project, noting that Kruisrivier’s cobalt grades are much higher than those in the African Copperbelt and the Democratic Republic of Congo, which dominate global cobalt production and reserves. The final due diligence and execution of the formal share sale and purchase documentation for MKC are expected in the third quarter.
Source: Mining Weekly
