Power Metal Resources plc has signed an earn-in agreement with the option to acquire a 100% interest in two lithium pegmatite exploration properties in Quebec, Canada.
TERMS
The company may earn in to a 100% interest of Authier North and Duval East in the prolific Val d’Or mining camp 45km northwest of the city and 500km northwest of Montreal.
Power Metal will pay Eagle Ridge Mining Ltd a total of £242,832 over a maximum of three years after which the subsidiary company will hold a 100% interest in the properties.
The total net smelter royalty (NSR) amounts to 2.25% which Power Metal can buy for C$500,000.
AUTHIER NORTH
Authier North, comprising 15 mineral claims covering 560 hectares, is considered prospective for lithium-pegmatites and base metal mineralisation.
The property shares an extended claim border with Sayona Mining’s Authier lithium project which hosts a JORC compliant total reserve of 12.1Mt at 1.0% Li2O (lithium oxide).
Power Metal said that the site had undergone very little historic exploration with reports of five short boreholes, four of which returned elevated lithium and nickel assays.
The company’s planned exploration will include geophysical surveys to model the possible down-dip extension of the lithium bearing pegmatite onto the Authier North property.
DUVAL EAST
Power Metal’s second earn-in option is for Duval East, consisting of one mineral claim covering 20ha and lying 3km east of Authier North.
Duval East has historical drill intersections of up to to 2m @ 1.38 Li2O.
The company noted that historical mapping showed potential for the dyke to extend eastwards further into the property.
Power Metal’s planned exploration could include diamond drill testing for extensions of the lithium bearing pegmatite dyke.
QUALITY
Chief executive Paul Johnson said that the agreement brought a focused and high-impact lithium opportunity into the company’s business in Canada.
“We believe that lithium is an important strategic commodity to have within our portfolio.
“However, as an exploration and development company what matters most is the quality of opportunity, which we think we have with these two earn-in properties.”