Power Metals Corp.’s (TSXV:PWM) lithium and tantalum grades reported so far are on the higher end for hard-rock lithium projects
SmallCapPower | October 22, 2018: Power Metals Corp. (TSXV:PWM), after successfully completing 5,400m of drilling in 2017 and 3,000m in early 2018, has embarked on an ambitious 15,000m summer/fall drill campaign on its flagship Case Lake property in northeastern Ontario. Initial results reported mid-August from the first eight drill holes were highlighted by 1.42% Li2O and 158 ppm Ta over 19.17m. The summer drilling program also resulted in the discovery of two new dykes between the Main and South Dykes. In our view, the program so far has been highly successful and not reflective of the current stock price. Most recently, on September 18, 2018, the Company announced it extended the east strike by 320m to the west and that it has a total strike length of 1.1km.
The fully-funded summer/fall 2018 drilling plan encompasses an 8,000m summer program and 7000m fall program for a total of 15,000m. PWM expects to target six different areas, four of which have not been drilled before. In late June, the Company began drilling two new spodumene dykes, which were discovered at the end of the 2017 winter drill program. This will be followed by drilling along a 900m strike length between the Main and Northeast Dykes.
Source: Company Presentation
Drilling to-date has been limited to only the Henry Dome, which hosts the Northeast and Main Dykes, amongst others. There are eight other dome targets on the property that have not been historically explored, depicting the large lithium-tantalum deposit that could be discovered, as PWM progresses drilling through the domes. In June, PWM announced the discovery of lithium mineralization in spodumene pegmatites on a new dome (Dome 9), validating PWM’s exploration model that lithium pegmatites are hosted by tonalite domes on the Case Lake Property. Post-discovery, PWM believes the other seven domes also have the potential to host spodumene pegmatites.
On July 9, 2018, PWM announced that the first hole of the summer drill program, PWM-18-84, which intersected 126.3m of pegmatite within the Main Dyke, confirming continuity of the Dyke along strike and down dip. The hole intersected continuous pegmatite from 2.0 – 128.25m, with significant intervals containing spodumene – 5-10% over 19.2m, 15% over 16.8m and 30% over 8.1m. True to these expectations, PWM reported impressive assay results from the first eight drill holes on August 21, with drill hole PWM-18-84 (which confirmed pegmatite continuity from 2.0 – 128.3m as mentioned above) intersecting 1.42% Li2O and 158 ppm Ta over 19.17m and 1.17% Li2O and 193 ppm Ta over 27.2m. Importantly, drill holes PWM-18-85, 86 and 87 targeted the spodumene dykes between the Main and South Dykes (discovered at 2017 drill program end). Two new dykes that have been discovered are located close to the Main dyke, which returned results grading 1.92 % Li2O over 1.05 m, 1.58 % Li2O over 0.67 m, and 1.83 % Li2O over 0.97 m, respectively.
Figure 2: Assay results from the first eight drill holes of 2018 summer program
Source: Company Reports
On September 18, 2018, PWM announced additional assay results from the Main Dyke, highlighted by PWM-18-94 (drilled through North and Main Dykes to fill in a gap from summer 2017 drill program), which intersected 1.40% Li2O and 196 ppm Ta over 6.94m, including 2.01% Li2O over 3m. PWM also noted that it extended drilling from Main dyke to East dyke that was never drilled historically, with drill holes PWM-18-100 to 109 extending the east strike by 320m to the west, taking the total strike length at East Dyke of 1.1km.
Figure 3: Assay results from additional holes (PWM-93 to PWM-109)
Source: Company Reports; PWM-18-95, 97, 100-109 have no significant Li values
For comparison, results from the 2017 drilling program announced in January 2018, averaged 1.56% Li2O and 143ppm Ta and up to 3.02% Li2O and 735ppm Ta at the Main dyke. Highlights include 2.07% Li2O and 214ppm Ta over 18.0m and 2.81% Li2O and 143.3ppm Ta over 7m from drill hole PWM-17-40.
Figure 4: Assay highlights of 2017 Program (Main Dyke)
Source: Company Press Release
In addition to discovery of two new dykes between Main and South Dykes, PWM announced (23 August) the discovery of new “West Joe Dyke” spodumene pegmatite, located 1.6km southwest of the western edge of the Main Dyke and 3.0 km southwest of the Northeast Dyke, and intersected by drill holes PWM-18-111 and PWM-18-112. Drilling has begun on the West Joe Dyke, with drill hole PWM-18-123 intersecting 35m of pegmatite including high-grade spodumene zones over different intervals and drill hole PWM-18-124 intersecting spodumene pegmatite from 1.5 to 18.9m.
Figure 4: Location of West Joe Dyke on the Case Lake Property
Source: Company Press Release
Recently, on October 9, PWM announced assay results of 16 drill holes at the West Joe Dyke that intersected high-grade lithium. Highlights included PWM-18-111 intersecting 1.52% Li2O and 251ppm Ta over 6.9m, including 3.88 % Li2O and 925 ppm Ta over 1.0m, and PWM-18-116 intersecting 2.14% Li2O and 288ppm Ta over 7.14m, including 3.07 % Li2O, 611 ppm Ta, and > 10,000 ppm Cs (Cesium) over 1.0m.
Figure 5: Assays from West Joe Dyke
Source: Company Press Release; PWM-18-110, 113 and PWM-18-117 have no significant Li values
For context, PWM’s lithium and tantalum grades reported so far 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.
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