Investing News NetworkAUSTRALIA
Hard-rock lithium explorer and developer Winsome Resources Limited (ASX: WR1; “Winsome” or “the Company”) is pleased to announce high grades of lithium have been identified from initial laboratory assay results from the recent drilling campaign completed at the Company’s 100 per cent- owned Cancet Lithium Project (the “Project”), in the James Bay region of Quebec, Canada.
Highlights:
- High grades of lithium up to 5.6% Li2O detected near-surface in initial assay results at Cancet project, Quebec
- Initial drilling results confirm Cancet’s potential resource scale with an increase in total strike length of known pegmatites from 600m to 1,200m
- Amongst other shallow intersections, WC-22-03 recorded 11.00m @ 1.08% Li2O from 31.45m and WC-22-05 recorded 16.87m @ 0.96% Li2O from 22.00m. WC-22-03 included intersections of:
- 1m @ 5.65% Li2O from 36.5m
- 6m @ 1.95% Li2O (36.45m to 42.45m)
- Significant tantalum mineralisation continues to be intersected including a peak sample assay of 3,436ppm Ta2O5
- Initial assay results are from the first 15 of 22 drill holes, with remaining drill results pending
- Upcoming field mapping and sampling campaign to focus on other, highly prospective targets at Cancet
In mid-March 2022, the Company launched its confirmatory and expansion winter diamond drilling campaign at the Project. The program included 22 holes and was designed to infill drill the known ore body and fill in the Company’s knowledge gap based on a relatively short program of 2,000m, due to limited supplies of drill rigs at short notice. It was also designed to test extensions based on geological interpretation and magnetic survey data.
The highest grade intersected at Cancet was 5.6 per cent lithium oxide (Li2O) with other significant, near-surface intersections recorded. The results are from assays of the first 15 of 22 holes from the recent drilling campaign carried out at Cancet, with the remaining assays still pending.
Importantly, the pegmatite body at Cancet continues to be delineated and as a result of this drill program, the total identified strike length of identified pegmatites has increased from 600m to 1,200m. The increase in total strike length highlights numerous follow-up targets for drill testing and the potential for a scalable, near-surface resource at Cancet.
In addition to high lithium grades recorded at shallow depths, significant tantalum mineralisation continues to be intersected. The program was successful in enhancing delineation of the mineralised envelope and increased sample density around the high-grade main dyke previously drilled.
Drill hole WC-22-03 returned 1,473ppm tantalum pentoxide (Ta2O5) over 6.0m, including a peak sample assay of 3,436ppm Ta2O5. The zonation of the lithium and tantalum within the mineralised body at Cancet is being investigated further, with geological modelling ongoing to further define the relationship.
Winsome’s Managing Director Chris Evans said:
“We are delighted with the assay results so far, which reveal high grades of lithium near the surface at Cancet, with the total strike length of known pegmatites increasing from 600m to 1,200m. The results also increase our knowledge of the ore body, with a view to extending the known mineralisation to the east, north and west, keeping us on track to declare a resource in the near term.”
Key Results
- WC-22-03 11.00m @ 1.08% Li2O from 31.45m depth, including:
- 1m @ 5.65% Li2O from 36.5m
- 6m @ 1.95% Li2O (36.45m to 42.45m)
- WC-22-05 – 2.00m @ 1.21% Li2O from 7.30m depth, including:
- WC-22-05 – 16.87m @ 0.96% Li2O from 22.00m depth, including:
- 4.0m @ 1.44% Li2O (23.0m to 27.0m)
- 1.89m @ 1.40%Li2O (28.0m to 29.89m)
- 1.60m @ 1.44% Li2O (23.0m to 27.0m)
- 1.89m @ 1.57%Li2O (37.0m to 38.89m)
- WC-22-06 – 11.39m @ 0.59% Li2O from 9.0m depth, including:
- 6.0m @ 1.05% Li2O (10.0m to 16.0m)
Figure 1 - Cancet Lithium Project (totalling 395 claims) displaying eastern half of the property where field investigation is planned to be launched in 2022.
Figure 2a: 2018 preliminary geo-model of the mineralised pegmatite outcrops identified at the Cancet Lithium Project.
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Winsome Resources
Overview
Lithium continues to be an essential resource in the manufacturing of batteries required to power modern technologies, such as laptops. smartphones, and other devices. Add to that the surging demand for electric vehicles (EVs) and other clean energy technologies, and it’s clear why the need for lithium continues to grow. The US Department of Energy expects the global lithium battery market to increase by five to ten times within the next decade. Additionally, research shows that demand for lithium will exceed two million metric tons by 2030.
North American governments have set ambitious goals to transition to green technologies, with both the United States and Canada adding lithium to their critical minerals lists. Both countries are focused on developing internal supply chains, including promoting further development of domestic lithium deposits and expanding downstream processing capabilities.
Nevada, Arizona, Saskatchewan and Quebec all rank within the top ten most attractive jurisdictions for mining in the world, but one notable source of hard rock lithium assets is found in Northern Quebec.
Winsome Resources (ASX:WR1) is an exploration and development mining company focused on cultivating four lithium assets in Quebec. The province has a highly-developed mining industry, strong support from the local government that includes tax incentives and significant offtake opportunities throughout North America. The company is fully-funded for exploration due to completing an AUD$18 million IPO that was heavily oversubscribed. Additionally, the Cancet, Adina, and Sirmac-Clappier projects are 100 percent owned by the company, with exclusive rights to purchase its fourth project, Decelles.
The company’s flagship Cancet Project is an advanced exploration project, with extensive diamond drilling and metallurgical test work already completed. The results reveal high-grade deposits of both lithium and tantalum, boasting a JORC exploration target of 15-25 Mt at 1-2 percent lithium Oxide (Li2O), alongside 100-250 ppm tantalum oxide (Ta2O5)
The company embodies a proactive approach to maintaining an excellent Environmental, Social and Governance (ESG) rating. Winsome Resources’ commitment to its ESG rating has a tangible impact on reduced emissions during exploration and future production. It has direct access to hydropower to power its operation with renewable energy. Additionally, the coarse grained nature of its hard-rock lithium deposits allow for using Dense Media Separation, a pre-concentration process that maximizes energy conservation.
Winsome Resources Managing Director Chris Evans provided context into why its hard-rock assets give the company a distinct advantage. “The fact that we're hard rock lithium is very important. And the fact we've got very coarse-grained spodumene, which makes it amenable to DMS, dense media separation, which is, like the old town of mine in Western Australia, which makes it relatively quick to market and lower capex.”
Winsome Resources is guided by a strong management team with direct experience that builds confidence in the company. Chris Evans, Managing Director, has a background in lithium exploration and development, previously leading the Pilgangoora lithium mine to full production. Dr. Qingtao Zeng holds a doctorate in geology and has been extensively involved in the lithium sector. Carl Caumartin, general manager in Canada, holds an MBA alongside a bachelor’s degree in geological engineering, making him a perfect addition to the team. Chairman Justin Boylson has over 25 years’ experience in commodity trading and resource project management, involved in the start-up of several mining and recovery projects worldwide. The team is rounded out by Peter Youd, CFO, who has 30 years of financial executive experience primarily in the mining, oil, and gas sectors.
Company Highlights
- Winsome Resources is a lithium-focused exploration and development mining company with four hard-rock lithium assets in Quebec, three of which are 100 percent owned by the company with exclusive rights to purchase its fourth asset
- Quebec is known as an extremely mining-friendly province, with its government providing tax incentives to attract mining companies alongside a strong mining infrastructure
- The company is fully-funded due to its oversubscribed IPO that raised AUD$18 million
- Winsome Resources’ flagship project, Cancet, is in advanced exploration stages and previous exploration data revealed a JORC exploration target of 15-25 mt at 1-2 percent Li2O, and 100-250 ppm Ta2O5
- Core to Winsome Resources' vision is its commitment to maintaining an excellent ESG rating by utilizing hydropower and Dense Media Separation, which is known for its energy efficiency
- A management team with direct experience in the lithium sector, in addition to management and financial experience, builds confidence in the company’s ability to fully develop its assets
Key Projects
The Cancet Project
Cancet is the company’s most advanced lithium asset and is the flagship project. It contains 395 claims and covers 20,000 hectares. The project’s primary targets are close to major roads and power lines, along with containing multiple access trails. Exploration has revealed a shallow high-grade ore body, allowing the company to use low-cost and low-impact concentrate production.
Project Highlights:
- Ideal Geology: The project is within a favorable geological setting that contains a mineralized spodumene-bearing pegmatite.
- Additional Targets May Expand Tonnage: New targets have been identified by remote sensing and magnetic surveys for further exploration that may significantly increase the lithium tonnage of the project
- Completed Exploration Had Promising Results: Assay highlights from previous drilling include
- 18m at 3.15% Li2O from 8 meters;
- 21.45m at 2.24% from 5 meters;
- 17m at 2.06% from 6 meters; and
- 11m at 2.93 percent lithium from 41 meters.
- Exceptional tantalum grades were also discovered.
The Adina Project
Adina has completed maiden drilling of 10 holes covering 1,726m in 2018. This exploration revealed a 2-kilometer strike due to the presence of a pegmatite ridge. The drilling results showcased well-mineralized deposits that warrant additional exploration.
Project Highlights:
- Additional Exploration Necessary: Before additional drilling commences, additional field prospecting and mapping will be completed to isolate drill targets
- Encouraging Previous Results: A 2018 drill program revealed lithium deposits with grades ranging from 1.24 % to 1.85% Li2O at depths between 43.69 meters to 99.09 meters
The Sirmac-Clapier Project
The project contains 67 claims covering 3,400 hectares. It hosts a favorable geological setting to host pegmatites and is situated immediately adjacent to an existing Lithium Resource.
Project Highlights:
- Nearby High-Grade Deposit: The project is less than 3 kilometers away from a known high-grade lithium deposit that contains 2.04% Li2O
- Helpful Historical Exploration: Extensive reports and historical exploration data available for the region.
- Ideal Location and Infrastructure: Sirmac-Clapier is close to a major mining town and airport, and already has roads and power infrastructure throughout the property
The Decelles Project
The project has 669 claims that cover 385 square kilometers of promising land. Winsome Resources recently signed an exclusive option agreement to explore and potentially acquire located in Decelles over 24 months.
Project Highlights:
- Nearby High-Grade Deposit: The adjacent Cadillac property operated by Vision Lithium (TSX.V: VLI) recently discovered a high-grade spodumene, creating more confidence in Decelles
- Thorough Exploration Planned: Winsome Resources aims to begin exploration immediately, beginning with desktop mapping of granitic outcrops revealed by historical data
Management Team
Chris Evans - Managing Director
Chris Evans has a strong lithium and project development background with close to 20 years of demonstrated success in managing large-scale construction and mining development projects and operations across various commodities. As Chief Operating Officer, Evans was responsible for building and bringing into operation the Pilgangoora lithium mine and processing facility which was recently acquired by Pilbara Minerals (ASX: PLS) in a deal valued at more than $200 million. In this role and also in his subsequent role as Managing Director of an ASX-listed lithium development Company, Evans was involved in establishing and maintaining key relationships with project finance and off-take partners. Evans holds a Master of Engineering Science, Construction Management, (University of New South Wales), a Bachelor of Engineering (Hons), Civil (University of New South Wales), and is a graduate of the Australian Institute of Company Directors.
Dr. Qingtao Zeng - Director (Non-Executive)
Qingtao Zeng has been extensively involved in the lithium exploration and development sector and has helped clients complete a range of contracts relating to the supply or purchase of lithium. He has been engaged as a consulting geologist, principally working with Eldorado Gold Limited CSA Global China and Australia, and has a range of geological and commercial specialties. Dr. Zeng completed a Ph.D. in geology at the Centre of Exploration Targeting (CET) of the University of Western Australia in 2013. Dr. Zeng has published several academic papers on orogenic gold or structure control gold geological studies and is a member of AUSIMM and the Society of Economic Geologist (SEG). He is currently a Director of Kodal Minerals Plc, MetalsTech Ltd & Australasian Gold Ltd.
Justin Boylson - Chairman (Non-Executive)
Justin Boylson is an experienced commodity trader and resource project manager with over 25 years of experience. Boylson has been responsible for several high-profile off-take transactions and has been involved in the start-up of several mining and recovery projects in Australia, the United States and Asia. Recent ASX directorships include Manuka Resources Ltd and Riversgold Ltd. Boylson is currently the Non-Executive Chairman of Mamba Exploration Ltd.
Carl Caumartin - General Manager (Canada)
Carl Caumartin holds a Bachelor of Science in Geological Engineering, as well as an MBA and is a Quebec native with more than 30 years of international experience as a mining executive and consultant. He has worked across projects focused on lithium, gold and numerous other commodities in Canada, Africa, Asia, and South America. Caumartin is a key part of the Company’s plans to develop the assets to become a significant player in the Canadian lithium market.
Peter Youd - CFO & Company Secretary
Peter Youd is a senior finance executive with more than 30 years of experience predominantly across the mining, oil and gas sectors in Australia and overseas. During his career, Youd has held Director/Chief Financial Officer/General Manager/Company Secretary roles with First Graphene Limited, Ausdrill Limited (now Perenti Global Limited) and Weatherford Compression Services.