daytrade diaries... november 13, page-134

Exit check this out re BFE



Black Fire Minerals acquires Namibian lithium project


Diversified resources company Black Fire Minerals (ASX: BFE) has snapped up the Karibib Lithium Pegmatite Project from Australian private company Sunrise Minerals in a deal worth about $455,000.

The acquisition will be facilitated via Black Fire purchasing Sunrise’s private Namibian subsidiary Starting Right Investments Ninety Four, which is the holder of the Karibib Project Exclusive Prospecting Licences EPL3750 and EPL3751.

The Karibib Project, located 120km northwest of Windhoek in Namibia, comprises two granted Exclusive Prospecting Licenses covering 765km2 of the Karibib Pegmatite Field.

The project tenure includes the historic Rubikon, Helicon and Fricke’s lithium‐tantalum‐cesium mines which operated intermittently from 1930 to 1994.

Historic mine production data is poorly recorded, but the Rubikon mine reportedly produced some 17,000t of lithium mineral concentrates from small scale open pit and underground mining between 1980 and 1994.

Black Fire intends to immediately commence an aggressive exploration program to drill test the known significant strike extensions of the Rubikon and Helicon pegmatites and to assess the potential of the remaining large ground holding for new lithium pegmatite discoveries.

The agreement is conditional upon regulatory approvals to be satisfied within 30 days.

Final consideration for the transaction will be 3,500,000 fully paid ordinary shares in Black Fire, with these shares being subject to a voluntary 6 month escrow period.

At the company’s closing share price on 11 November 2009 of 13 cents, this equates to an acquisition cost of $455,000.

The share price now stands at 14c, following the release of the announcement.

Black Fire managing director Simon Rigby said the Karibib Project had not been subjected to modern exploration and the historic lithium mining activities were largely small scale gouging operations that only exploited small portions of the outcropping pegmatites.

"This provides a significant opportunity for Black Fire to carry out drilling programs to test the down dip and strike potential of the historic deposits and utilise modern regional exploration techniques to assess the entire project area for new outcropping and/or blind lithium bearing pegmatite targets," Mr Rigby said.

He said the acquisition of Karibib also represented an excellent opportunity for the company to participate in the rapidly growing sector of the energy storage business due to the proliferation of electric vehicles and electronic equipment using Li‐ion batteries.

"The company intends to advance both Karibib and the previously announced Mystique Gold Project through technically focused exploration activities over the next six months," Mr Rigby said.

"With the recent successful completion of a significant capital raising, the company is well positioned to fund the current projects and maintain the search for further high quality projects for potential joint venture or acquisition.”