Economic near-surface lithium and tantalum grades have indicated the potential for a significant open-pit hard rock deposit at Power Metals Corp.’s (TSXV:PWM) Case Lake property
SmallCapPower | July 17, 2018: Power Metals Corp. (“Power Metals”) (TSXV:PWM) is a hard rock lithium explorer focused on its flagship Case Lake property, comprising 38 mining claims for 7,136 Ha, located 100 km north of Kirkland Lake, NE Ontario. An all-seasons access road encircles the property. Although limited to 83 current drilled holes, work-to-date indicates that spodumene pegmatites may occur throughout the property in dykes hosted by domes. There are nine dome targets on the property, and only one has been drilled to-date, the Henry Dome, which hosts the Northeast and Main Dykes. Economic near-surface lithium and tantalum grades have indicated the potential for a significant open-pit hard rock deposit. There has been some historical work on the property, last completed in 2001. This work included only seven drill holes, six channel samples, outcrop mapping, and grab sampling. MGX Minerals Inc. (CSE:XMG) owns a 20% working interest in the property.
Results to-date have been successful, with results averaging 1.56% Li2O and 143ppm Ta and up to 3.02% Li2O and 735ppm Ta. Highlights from the last batch of results released in January at Case Lake at the Main dyke include 2.07% Li2O and 214ppm Ta over 18.0m from drill hole PWM-17-40. The winter 2017 drill program comprised of 5,400m over 50 holes on the Main and North Dykes. Additionally, the winter 2018 drill program consisted of 33 holes (3,020m) drilled on the Northeast Dyke. For context, PWM’s lithium and tantalum grades are on the higher-end for hard rock lithium projects. For example, Critical Element’s (TSXV:CRE) Rose Feasibility-Stage project located in Quebec is anticipated to mine ~4,400 tonnes per day at an average grade of 0.85% Li2O and 133ppm Ta for a mine life of 17 years. As well, although significantly larger, Nemaska Lithium’s (TSX:NMX) Feasibility-Stage Whabouchi project, located in Quebec, hosts P&P open-pit & underground reserves of 1.53% Li2O and 1.16% Li2O, respectively.
On June 5, Power Metals announced the discovery of significant pegmatite occurrences via the completion of its geological mapping program at Case Lake. The Company found several spodumene outcrops and occurrences between and along the Main and South dykes. In addition, spodumene was discovered on the 1.2km-long East Dyke, which has never been drilled before. At the Northeast Dyke, the Company discovered five new outcrops and three new dykes. The results of grab sample testing are pending.
On June 21, the Company commenced its 15,000m drill campaign. Power Metals is targeting six different areas, four of which have not been drilled before. PWM intends to start drilling with the two new spodumene dykes, which were discovered at the end of the 2017 winter drill program. This is expected to be followed by drilling along the 900m strike length between the Main and Northeast Dykes. Further discovery in the other target areas could lead to a significant lithium-tantalum deposit. An active drill campaign should provide many catalysts for the stock throughout the remainder of the year.
The current drilling is fully funded. In January 2018, Power Metals closed a $3.5M bought deal at $0.50/unit. Each unit comprises one two-year warrant with a strike price of $0.70. PWM also owns 3M shares of MGX Minerals, which represents ~$3.0M at current prices. Most recently, on June 27, 2018, the Company closed a $2M flow through.
Strong Management Team
- Johnathan More, Chairman and Director, has worked in capital markets for over 20 years, including Canaccord, with a focus on natural resources.
- Julie Selway, Ph.D, P.Geo, VP of Exploration, has co-authored 22 scientific journal articles on pegmatites. She has worked on ~90% of lithium pegmatites in the province, including the Case Lake pegmatites. With more than 10 years as senior geologist for Caracle Creek International Consulting, Dr. Selway co-authored 23 NI 43-101 Reports on a wide variety of metals.
- Brent Butler, CEO and Director, is a geologist with a B.Sc from the Otago University of Dunedin. He provides the Company with more than 30 years of experience in exploration, resource modelling, and mining. As a current member of geological societies worldwide, he also serves various roles at Millennial Lithium (TSXV:ML), Superior Mining International (TSXV:SUI), and Audalia Resources (ASX:ACP).
- Cyrus Driver, C.A., CFO and Director, is a founding partner of Driver Anderson, and currently serves a partner in Davidson and Company after a 2002 merger. Mr. Driver serves as CFO and/or Director in 12 companies, largely focused on natural resources.
- Rob Dardi, Director, is a B.C. lawyer and businessman with over 30 years of experience in securities law, corporate governance, financing, and mergers and acquisitions. He practiced with McCarthy Tetrault, First City Financial, and Concert Properties.
- Brian LaRocco, Director, holds a B.Sc in Accounting, and an MBA with a concentration in Finance, and a CPA license in New York. He has worked in real estate, managing project and corporate risk, as well finance, debt, and equity sourcing. Mr. LaRocco also worked as a senior statement auditor for Arthur Andersen and KPMG.
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