Critical’s Graphic Lake acquisition highlights its lithium focus
Link copied to
Critical is expanding its lithium footprint in Ontario, Canada, with the acquisition of the underexplored Graphic Lake project within a proven lithium province.
The Graphic Lake project, located about 180km from the recently acquired Mavis Lake lithium project, hosts early indications of a potential lithium-caesium-tantalum (LCT) pegmatite – the type which accounts for 25% of the world’s lithium production – and is also considered to be prospective for rare earths.
Critical Resources (ASX:CRR) currently has 13 surface samples awaiting assay at the laboratory, with results expected imminently.
A work program is currently underway to identify drill targets with permitting for exploration activities to begin immediately.
“The Graphic Lake lithium project in Ontario Canada represents an excellent early-stage exploration opportunity that is synergistic with our newly acquired Mavis Lake project,” managing director Alex Biggs said.
“The company is committed to making quality acquisitions and expanding its access to lithium raw materials to provide the company’s shareholders with exposure across a range of battery and critical minerals.
“An early-stage project such as Graphic Lake allows us to add significant value from the ground floor, in a commodity that we anticipate will be in high demand for the foreseeable future.”
The company’s projects are well placed, given Tesla is building a battery manufacturing plant in Ontario.
Critical is acquiring the Graphic Lake project – located 55km southeast of Kenora – for an initial $80,000 in cash and $120,000 in shares calculated at a 20-day volume weighted average price.
It has also committed to paying a 1.5% net smelter royalty capped at C$500,000.
This acquisition is subject to Canadian Investment Review Board Approval.
Graphic Lake is dissected by the TransCanadian Highway, providing key links to larger cities such as Thunder Bay, Ontario to the southwest and Winnipeg, Manitoba, to the west.
The claims comprise a pegmatite swarm trending northeast-southwest with a width of 300m and estimated strike of 5.5km.
These pegmatites are observed to follow the foliation of the Royal Island group metasedimentary host rocks.
Critical plans to carry out surface mapping and sampling of outcrops will assist in identifying drill targets in conjunction with the planned airborne survey data.
It will also carry out an airborne survey as soon as possible to help identify targets for a drill program, while channel sampling will be conducted on areas of interest previously identified by outcrop mapping and sampling.
The company will then embark on a preliminary drill program totalling about 2,500m or more, before following up with a 5,000m secondary program based on the preliminary results and data interpretation from previously outlined exploration activities.
This article was developed in collaboration with Critical Resources, 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.