The company plans to undertake diamond drilling in Q4 this year. Pic via Getty Images.
Mining
With the ever-growing shift towards a green economy and the thirst for electric vehicles and energy storage systems, the demand for battery component-metals is undergoing a tremendous shift in mineral exploration to meet that demand.
And Manhattan Corp is stepping up to the plate with its acquisition of the Chebogue lithium project in Canada which is along strike to Champlain Mineral Ventures’ Brazil Lake Lithium Project (MRE – Indicated: 555,300T at 1.30% Li20, Inferred 381,000T at 1.48% Li20).
The landholding totals 1,200 km2 within 109 mineral licenses covering over 100km of prospective lithium pegmatite strike length.
“The Chebogue acquisition has diversified our commodity exposure, providing shareholders with exposure to a lithium project in a Tier-1 jurisdiction,” Manhattan Corp (ASX:MHC) general manager Canada Paul Smith said.
“It will complement the existing Tibooburra High Grade Gold Project and Ponton Uranium Project – with all three projects strategically located in emerging and under-explored districts.”
And exploration is already underway, with one of the priority targets immediately adjacent to the Brazil Lake pegmatites – with the company confident of the potential to discover and develop additional pegmatites along strike.
Canada is part of the North American Free Trade Association, and the recently announced American government’s US$369 billion Inflation Reduction Act (IRA) funding policy requires that 80% of North American battery metals come from North America or countries with a Free Trade Agreement with North America by 2026.
“It’s important that future lithium spodumene concentrate from North America can sail from Canadian ports to anyone of a dozen potential lithium ion battery manufacturing plants in North America,” Smith said.
“Chebogue is surrounded by excellent infrastructure and located just 25km from deep sea shipping facilities at Yarmouth port connecting the project to the Atlantic Ocean and North American and global markets.”
Plus, the project boasts infrastructure including all-weather roads, ports, airport, power grids and wind plants, which means the company can easily get lithium concentrate to offtakers hands in North America.
To date, ongoing drilling at Brazil Lake at two known lithium-bearing pegmatites has intersected additional pegmatites in core up to ~25 metres in true thickness – which is all good news for MHC.
“That type of news is good for the Champlain Mineral Ventures, owners of the property, Lithium Springs who entered into an option agreement with Champlain, the Nova Scotia government and local community, and for MHC who hold adjacent licences along strike to the north and to the south,” Smith said.
“In all, it’s good news for everyone when it comes to the potential of a lithium development in the province.
“If MHC makes a significant spodumene discovery, then exploration in this end of the province will break wide open.
“Our crews have been out sampling pegmatites for analysis to confirm the presence of lithium before we can say much more.”
As soon as high confidence targets are delineated, the company hopes to be diamond drilling, likely in the 4th Quarter of 2023.
This article was developed in collaboration with Manhattan Corp 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.
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