Galan snatches up white-hot Canadian lithium projects
Galan Lithium and ASX-listed joint venture (JV) partner Redstone Resources have snatched up a pair of exclusive plots in two of Canada’s premier lithium provinces, adding to its portfolio of tier-one lithium projects.
The company says it has entered into an equal-share binding JV agreement with Redstone to acquire 100 per cent of the Taiga, Camaro and Hellcat lithium projects from CSE-listed Infinity Stone Ventures in the heart of the rapidly-emerging James Bay lithium province in Quebec. The projects cover a hefty 5187 hectares and lie near to Patriot Battery Metals' behemoth Corvette discovery.
Patriot’s recent CV8 pegmatite discovery, a mere 1.4km north of the Taiga project, is considered one of the finest new hard-rock lithium discoveries, returning grab samples up to 4.6 per cent lithium oxide.
Ore-forming models for lithium deposits require a mix of several important ingredients, including a nearby granite that provides the melt source, greenstone belts as host rocks and large-scale structural features that act as conduits for the lithium-rich melts.
According to Galan, the Tiago, Camaro and Hellcat properties have all those ingredients in spades, with multiple highly-prospective targets already identified.
Late last year, Infinity contracted Axiom Exploration Group to undertake a prospectivity assessment of the Taiga, Camaro and Hellcat properties. A total of 80 samples were collected from the trio, with 61 samples being classified as pegmatite. Interestingly, a geochemical analysis of the samples revealed promising geochemical trends indicative of the fractionation commonly associated with lithium-rich pegmatites.
In neighbouring Ontario, the JV duo has secured an option to acquire 100 per cent of the PAK South and PAK Southeast claims, covering some 1400ha adjacent to TSX-listed Frontier Lithium’s PAK lithium project.
Frontier is developing the PAK lithium project in Ontario’s “Electric Avenue”, which is said to host the province’s biggest and highest-grade lithium resources in the form of the PAK and Spark deposits.
The PAK deposit hosts a measured and indicated resource of 6.68 million tonnes at 2.02 per cent lithium oxide and an inferred resource of 2.67 million tonnes averaging 2.29 per cent lithium oxide. In comparison, the Spark deposit hosts an indicated resource of 14.4 million tonnes at 1.4 per cent lithium oxide and an inferred resource of 18.1 million tonnes at 1.37 per cent lithium oxide.
Frontier came to prominence earlier this year when it revealed it had intersected 405m of 1.5 per cent lithium oxide at its Spark deposit, which has recently been followed up with a 108m hit averaging 2.12 per cent lithium oxide.
The PAK South and PAK Southeast claims sit along the regional Bear Head Lake Fault, a conduit for a suite of granitic intrusions which has been traced for more than 140km from north-west to south-east. The fertile granites are interpreted to be the parental rocks that give rise to the critical metal pegmatites.
Interestingly, Ontario’s Geological Survey previously mapped out a series of pegmatites within the boundaries of the tenure in question.
Galan Lithium managing director Juan Pablo Vargas de la Vega said: “Securing a prospective position in two premier lithium exploration global hotspots is value accretive and complements our exploration efforts in Greenbushes South in Western Australia to create further value for shareholders in parallel with our development and production lithium brine assets in Argentina.”
Under the terms of the James Bay deal, Galan will issue 250,000 fully-paid ordinary shares to Infinity, in addition to a payment of C$500,000 (AU$578,000). It will also issue 300,000 shares and a payment of C$255,000 (AU$295,000) to an unnamed vendor.
To pick up the Ontario tenements, Galan will make a payment of C$20,000 (AU$23,000) to Infinity for a three-month exclusive option fee. To exercise the option, Galan will part with C$200,000 (AU$231,000) and will issue C$230,000 (AU$266,000) worth of shares at a five-day weighted average price prior to the date of exercising the option.
For its part in the 50-50 deal, JV manager Redstone will hand over up to C$750,000 (AU$868,000) worth of shares in two separate tranches, dependent upon shareholder approval.
Redstone chairman Richard Homsany said the company was “delighted” to be partnering with Galan because of its considerable technical depth and expertise. Redstone will be the JV manager.
The company has wasted no time in getting boots on ground, planning a field-based reconnaissance geological mapping and sampling program, with a follow-up ground-based geophysical survey to determine the geometry of any lithium-bearing pegmatites at depth.
Patches of dirt in this neck of the Canadian woods don’t come along too often, if at all. So, to secure not one, but two is as much a stroke of good fortune as it is good management.
With a plethora of world-class lithium deposits scattered all around, market pundits will be waiting with bated breath to see what Galan and its JV partner Redstone can uncover.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au