Small African nation could join the 'lithium elite' with new mining venture

SQM and Andrada Mining have started a major lithium drilling push in Namibia at the Lithium Ridge project. The plan covers about 9 miles of drilling to see how deep and continuous the ore is.

Andrada announced the start of drilling across top targets with SQM as partner, as set out in a recent announcement.

Lithium Ridge sits about 22 miles east of the company’s Uis tin mine. That proximity trims logistics and keeps the field team within an established mining hub.

Mining for lithium in Namibia

The program totals about 120 boreholes to probe depth and continuity along a mineralized ridge about 3.7 miles long. Crews will log structure and rock types as the core comes out.

They are running oriented diamond drilling, a core method that records original rock orientation for structural analysis. This helps connect surface samples to what lies at depth without guesswork.

Field mapping has already logged new zones with visible spodumene. Early surface signs like these guide hole placement and limit wasted meters.

The first stage focuses on the ridge and then steps into the wider license where fresh targets have emerged. That broader sweep increases the odds of stacking multiple ore bodies into one plan.

Finding lithium in rocks

Lithium here sits in pegmatite, a coarse igneous rock enriched in rare elements. Pegmatites can carry lithium minerals in thick, irregular bodies that are easier to mine than thin veins.

Much of the lithium appears as spodumene (a hard lithium aluminum silicate used to make concentrates). The balance between minerals matters because processing routes and costs differ.

A recent continental review notes that African pegmatites often form in belts tied to ancient tectonic events. That big picture supports the hunt for clusters of deposits rather than isolated finds.

Namibia’s lithium partnership

SQM’s staged earn in gives the project deep pockets and battery supply chain know how. The structure and key conditions are summarized in a regulatory approval.

Under stage one, SQM funds 7 million dollars of exploration over roughly 18 months for an initial 30 percent. Total spending up to 40 million dollars would lift its stake to 50 percent if milestones are met.

This type of staged funding tied to ownership steps, limits early dilution for the junior partner. It also aligns technical decisions with the capital provider that will share project risk.

The setup brings funding, field expertise, and a potential home for future concentrate. That combination is rare in early stage lithium.

Signals from past tests

Previous drilling and sampling along the ridge returned up to 2.13 percent Li2O. Metallurgical test work produced a 6.8 percent Li2O concentrate with about 76 to 80 percent recovery.

Those numbers matter because they speak to both grade and processability. A clean, high grade concentrate with solid recovery cuts unit costs at scale.

The team aims to extend those results down dip and along strike. Success would translate lab outcomes into a mine plan.

How Namibia entered lithium game

The lithium market cooled through 2024 and early 2025, and funding for greenfield projects tightened. Some operators in Namibia hit the brakes, which raises the stakes for those still moving.

Prospect Resources confirms its Omaruru project is on pause, with spending pared to minimum holding commitments. Lepidico, owner of the Karibib project, entered liquidation in mid 2025, as set out in a KordaMentha shareholder update.

Those setbacks do not change the bedrock geology, but they do shift investor focus to projects with strong partners. They also underline why clear funding and technical de-risking matter.

Success and next steps

Stage one drilling aims to lock down thickness, grade continuity, and geometry. Those data underpin resource estimates and the early mine design choices that follow.

A fast track is explicit in management’s words: “We expect this programme to provide the foundation for fast-tracking the project towards development,” said Anthony Viljoen, Andrada’s CEO.

That ambition still hinges on core, assays, and trade-offs between scale and speed.

If the numbers hold, the project could move to infill drilling, pilot-scale metallurgy, and a first pass economic study. Each step will test whether the deposit can generate consistent, low impurity concentrate at competitive cost.

Nearby processing options at Uis and existing roads offer practical advantages. Short hauls trim fuel and time, small wins that add up in early cash flow models.

The fine print that counts

Quality hinges on geology, but economics hinge on recoveries and iron content in concentrate. The earlier lab campaign reported low iron, which is important for battery customers.

Stakeholders will watch water supply, power cost, and permitting timelines. Namibia’s mining code and infrastructure are strengths, yet every project must show site specific solutions.

The drilling design will also watch for the arrangement of fractures and folds that can redirect ore bodies. Orientation data helps avoid missing lenses or misreading thickness where the ridge bends.

Data quality will matter as much as headline grades. Core recovery, contamination control, and independent QA checks keep results decision grade.

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