Sigma Lithium receives licence to build second mine at Grota do Cirilo property
Spodumene ore produced at the Barreiro mine will feed its Greentech lithium beneficiation plant.
Lithium junior FE Battery Metals’ (CSE: FE) shares shot up 53% in early trading Monday after the company announced it had sampled a new high-grade area called Outcrop #26 on its Augustus project in northern Quebec.
The Vancouver-based company said in a release that its Outcrop #26 discovery on the eastern portion of the prospect returned a highlight channel sample value of 14.7 metres grading 1.15% lithium dioxide (Li2O).
According to the FE, the main Augustus pegmatite is a blind lithium deposit with very few surface exposures. This newly exposed deposit will help the company to understand the geology, structure and trend of the main potential deposit area to develop more drill targets.
The sample also returned anomalous values of rare metals such as beryllium, cesium, niobium, rubidium and tantalum. One grab sample from Outcrop #26 returned values as high as 1.92% Li2O.
Outcrop #900 near Sayona Mining’s (ASX: SYA) North American Lithium Mine (NAL) cut 10 metres at 0.52% Li2O. This outcrop also returned lithium grab values in the range of 0.004%-1.18% Li2O.
Another 19 grab samples from the Bella prospect, also near NAL returned lithium values in the range of 0.005%-1.26% Li2O with more values of interest from other rare metals. This zone will be drilled during the current drilling program.
Elsewhere, four grab samples collected from the Lac Fiedmont area returned low lithium values. Six grab samples collected from the Duval prospect returned high values of 0.004%-2.15% Li2O, which averaged 1.14%. The company intends to expand its exploration on this higher lithium value area.
FE Battery has to date, drilled 68 drill holes with over 15,000 metres of NQ size diamond drilling on the property. It has intercepted several lithium pegmatite dykes of variable lengths, widths and lateral continuity.
Augustus consists of over 270 sq. km surrounding the Val-d’Or mining hub. Augustus was first drilled in the mid-1950s when pegmatite was outlined along an 850-metre strike with an average width of 7.6 metres. Drilled to a depth of 207 metres, the mineralization remains open at depth.
In April, on another of the rare outcrops on the Augustus prospect, Sayona released a feasibility study on the NAL mine, outlining an after-tax net present value (8% discount) of $1.4 billion and an internal rate of return of 2,545%.
The NAL project hosts proven and probable reserves of 21.7 million tonnes grading 1.08% Li2O for 235.5 million tonnes of Li2O. Measured and indicated resources (including reserves) total 25 million tonnes at 1.23% Li2O for the pit-constrained portion. The project hosts another 22 million inferred tonnes at 1.2% Li2O.
Sayona on Aug. 3 shipped the first lithium concentrate from the Sayona Mining Quebec partnership, owned 75-25 by Sayona and Piedmont Lithium (NASDAQ: PLL; ASX: PLL).
FE Battery continues to drill at Augustus with the goal of eventually constraining a first NI 43-101 compliant resource estimate in the future. It also holds two lithium projects in Ontario.
At press time Thursday , FE Battery shares traded at C51¢, down from the intra-day high of C60¢, but still up more than 30%, having touched C7¢ and C$1.34 over the past 12 months. It has a market capitalization of C$15.1 million ($11.1m).
