Critical Resources gets the news it needs to forge ahead with Mavis Lake lithium project
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Critical Resources has satisfied its due diligence for the Mavis Lake lithium project in Ontario, Canada and is now planning to expedite exploration drilling.
The company signed a binding terms sheet to acquire the project last month and has identified no fatal flaws.
Previous drill programs at Mavis Lake have yielded high-grade lithium carbonate intercepts which the company believes presents significant exploration potential, including:
An airborne magnetics, radiometric and VLF electromagnetic survey was completed on the 8 November.
Critical Resources (ASX:CRR) says this will supply tenement wide survey data that will potentially provide exploration targets and assist in strategic planning.
The company is planning an aggressive ~5,000m diamond drilling program with the aim of defining a JORC compliant resource – once it receives final acquisition approval from the Investment Review Branch of Canada (IRB).
“Satisfaction of the due diligence for Mavis Lake is a big step forward for the company,” CEO Alex Biggs said.
“We have always believed in the quality of the project, but it is important that we approach our work diligently to ensure risk is mitigated.
“We are awaiting final approval from the IRB which is required to allow us to finalise the transaction with the vendors.
“We are excited to get on the ground in Canada and start our exploration works and begin discovering what Mavis Lake has to offer.”
If appropriate mass of existing core is available, then metallurgical test work will be planned to test for battery grade lithium carbonate of 99.5% purity, which will be an ongoing part of future drill campaigns, ensuring that appropriate volume of core is produced to allow for metallurgical testing to prove a concentrate which is of battery grade quality.
Tesla recently announced the opening of a battery gear manufacturing plant in Ontario, Canada, which the company says demonstrates the significance of Ontario as one of the world’s leading lithium provinces.
The region is a well-established lithium province with multiple projects in the vicinity of Mavis Lake and its currently a hive of lithium exploration activity.
CRR says that due to the quality of lithium assets in the region, the current buoyant lithium market and the intent of North American manufacturers to source lithium for battery manufacturing from the province, it is an excellent time to be gaining a foothold in Ontario.
This article was developed in collaboration with Critical Resources Limited, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.