• Andrada starts 14,000m lithium drilling at Namibia's Lithium Ridge
• SQM funds $7M program, may invest up to $40M total
• Drilling tests 120 sites; SQM to gain 30–50% project stake

Andrada Mining announced on Wednesday, September 3, a 14,000-meter exploration drilling at its Lithium Ridge project. The work is part of a $7 million program funded by SQM, the world's second-largest lithium company by market capitalization, which signed an agreement in September 2024 to invest up to $40 million in the Namibian project.

The drilling program will involve approximately 120 boreholes to test the depth and continuity of mineralization observed on the surface. Previous work at the site, located 35 km from Andrada's Uis tin mine, has shown grades of up to 2.13% lithium. The duration and cost of the campaign were not specified, but the agreement with SQM allocates the $7 million for an 18-month exploration period.

Following this initial investment, SQM is set to acquire a 30% interest in Lithium Ridge. A total expenditure of $40 million, including $13 million over two years, will allow the Chilean company to increase its stake to 50%.

"The commencement of drilling at Lithium Ridge with our tier-1 joint-venture partner, SQM, is a significant step forward in unlocking one of Namibia's most exciting lithium opportunities," said Anthony Viljoen, Andrada's CEO. "We expect this programme to provide the foundation for fast-tracking the project towards development."

The SQM investment comes at a time when other players in Namibia have slowed development in recent months due to falling lithium prices and difficulties in raising funds for new projects. For example, Australia-based Lepidico, which owns one of the country's most advanced lithium projects (Karibib), is currently in liquidation. Prospect Resources, which was once active in lithium exploration at the Omaruru project, has also suspended its activities in the country.

Emiliano Tossou