Frontier Lithium (TSXV: FL) has reported high-grade intercepts from geotechnical drilling at its Spark pegmatite in northwestern Ontario, part of a larger work program that will inform a feasibility study for its PAK property next year.

Hole DDH PL-GDH-24-24 cut 136.7 metres of pegmatite from surface grading 1.32% lithium oxide (Li2O), including 8.8 metres at 1.74% Li2O from 24.8 metres depth, and 5 metres grading 1.87% Li2O from 44.3 metres, the company said in a news release.

Hole DDH PL-GDH-27-24 cut 48.1 metres of pegmatite from surface at 1.93% Li2O, including 8.3 metres grading 3.33 Li2O; and another 49.8 metres grading 2.23% Li2O, 0.61% cesium and 461 parts per million tantalum from 129.7 metres depth. The company released results from five holes in all.

“The geotechnical winter diamond drill program yielded consistent drill intersections with the two northern holes confirming and extending a high-grade lithium zone, with enriched cesium and tantalum,” Frontier’s vice-president of exploration Garth Drever said.

“The program also extended the Spark pegmatite 200 metres to the west. Although width and lithium values were low, based on existing drill intercepts to the east, we expect the pegmatite to increase in both grade and width with depth.”

Mitsubishi deal forming

The winter drilling at Spark, came almost two months after Frontier closed a deal with Mitsubishi, first announced in March, that gives the Japanese company a 7.5% interest in the PAK lithium project for C$25 million. Mitsubishi can increase its interest in the JV to 25% after Frontier completes a definitive feasibility study for PAK, expected next year.

The geotechnical holes were drilled to test pit-wall stability and hydrogeological conditions, Frontier said.

The drilling at Spark was in addition to geotechnical drilling during February and March on possible infrastructure sites such as stockpiles, tailing management, a mill and other related facilities.

PAK has a 24-year mine life and a net present value of C$1.7 billion at an 8% discount rate and a 24% internal rate of return, according to the prefeasibility study issued last May.

Located just east of the Manitoba-Ontario border, the PAK and Spark projects host 22 million tonnes of probable reserves grading 1.55% Li2O. Measured and indicated resources (including reserves) total 46.3 million tonnes grading 2% Li2O and inferred resources come to 30.3 million tonnes at 1.97% Li2O.

The chemical plant at the site will aim to produce 23,000 tonnes a year of lithium hydroxide, almost double the amount in the pre-feasibility study. As much as a quarter could be used for the Japanese automobile market if Mitsubishi pursues the investment plan, with the rest for North America’s supply chain.

The company plans to connect the site to the road network with a group of seven First Nations (Pikangikum, Deer Lake, Keewaywin, McDowell Lake, North Spirit, Poplar Hill and Sandy Lake) cooperating on its construction. However, no timeline or cost estimate has been given for the road project.

Frontier shares were down 2.6% to C$0.75 apiece on Friday afternoon, valuing the company at C$168.7 million. Its shares traded in a 52-week range of C$0.41 and C$1.92.

Source: MINING.COM – Read More