Like standing at the tip of an iceberg: One of the many outcrops of the newly discovered HL3 pegmatite returned 1.58% Li2O in a 8.8 m wide channel on the Hidden Lake Property near Yellowknife, NWT.
Today, 92 Resources Corp. reported final assay results from an extensive sampling program on its wholly owned Hidden Lake Lithium Property within the central part of the Yellowknife Lithium Pegmatite Belt in Northwest Territories (“NWT”), Canada.
The 2016 summer exploration program included prospecting, mapping and sampling of the known D12 pegmatite (results reported on November 8), in addition to the newly discovered HL1, HL3 and HL4 pegmatites (results reported today). At the end of the summer program, 2 additional spodumene-bearing pegmatites (HL6 and HL8) were discovered.
CEO Adrian Lamoureux said today:
“Channel sample results from the HL1, 3 and 4 pegmatites have exceeded our expectations, with strong mineralization demonstrated throughout, which was bolstered by the discovery of some very significant tantalum grades. At least six prospective pegmatites are known within the Hidden Lake Property, with exposed strike lengths of 350 to 800 m, the potential for significant concentrations of Spodumene Pegmatites remains very high.“
92 Resources explored this project from the perspective that there may be 1 or 2 pegmatites of interest, but instead they may have found an entire district.
When looking at the grades and maps of the 4 pegmatites tested by channel sampling this summer, the following observations can be made:
• Channel samples were cut at approximate right angles to the strike of the outcropping pegmatite to best represent the mineralization at surface. Due to terrain variations and cover, some channels may not represent the true width of the pegmatite body (and as such only represent the pegmatite outcropping at surface).
• This means that only the many outcrops of a pegmatite were sampled and that these may extend below surface to form one large, interconnected body with an individual strike length exceeding 500 m; the tip of an iceberg, sort of. The depth and extent below surface can be determined by drilling, which is being permitted now.
• The HL1 pegmatite has a strike length of at least 700 m, with only small parts of potentially 1 body exposed at surface.
• The upcoming winter drill program will test the continuity of the HL1 pegmatite below a shallow cover. As such, drilling may uncover the pegmatite to continue below surface and thus expose the true size of a single, large body.
• The HL1 pegmatite alone has the potential to be 700 m long. This could be a potentially world-class deposit by itself as not only grade matters but size as well. As many advanced lithium deposits use a cut-off grade of 0.75% Li2O, any grades above that level are generally considered great.
• Best intercepts from channel sampling the outcropping parts of HL1:
• 2.96 m @ 1.43% Li2O including 1.96 m @ 1.99% Li2O
• 2 m @ 1.33% Li2O including 1 m @ 2.52% Li2O
• 8.72 m @ 1.26% Li2O including 6.32 m @ 1.53% Li2O
• 6.96 m @ 1.21% Li2O including 3.01 m @ 1.38% Li2O
• 5.8 m @ 1.17% Li2O including 2.92 m @ 1.93% Li2O
• 3.52 m @ 1.07% Li2O including 1.87 m @ 1.49% Li2O
• 4.12 m @ 0.7% Li2O including 2.13 m @ 1.25% Li2O
Average of these 7 channels:
1.17% Li2O incl. high-grade zones @ 1.73% Li2O
• As indicated by the map, the HL3 pegmatite body is exposed at surface more than HL1.
• With a strike length of at least 800 m, the HL3 pegmatite body has great potential to be very large/long. The upcoming drilling will test if HL3 continues below surface as one extensive body.
• Only drilling can demonstrate the true size and continuity of the mineralized body below a shallow cover. However, surface expressions already indicate great potential for continuity below surface and as such another large pegmatite body on the property.
• Best intercepts from channel sampling the outcropping parts of HL3:
• 8.78 m @ 1.58% Li2O including 6.93 m @ 1.78% Li2O
• 3.37 m @ 1.34% Li2O including 1.73 m @ 2.05% Li2O
• 6.73 m @ 1.29% Li2O including 6.06 m @ 1.41% Li2O
• 4.91 m @ 1.28% Li2O including 1.88 m @ 1.41% Li2O
• 5.54 m @ 1.23% Li2O including 4.04 m @ 1.4% Li2O
• 4.96 m @ 1.16% Li2O including 3.95 m @ 1.39% Li2O
• 8.15 m @ 1.12% Li2O including 7 m @ 1.29% Li2O
Average of these 7 channels:
1.29% Li2O incl. high-grade zones @ 1.53% Li2O
• As indicated by the figure, the HL4 pegmatite body is exposed at surface less than HL3, yet HL4 occurs only 150 m from HL3 in a parallel fashion.
• With a strike length of at least 500 m, the HL4 pegmatite body could also turn out to be very large/long. The upcoming drilling will test if HL4 indeed continues below surface as one large body.
• Best intercepts from channel sampling the outcropping parts of HL4:
• 3.4 m @ 1.74% Li2O
• 5.78 m @ 1.71% Li2O
• 5.45 m @ 1.51% Li2O including 4.7 m @ 1.73% Li2O
• 6.13 m @ 1.41% Li2O including 5.88 m @ 1.47% Li2O
• 6.3 m @ 1.24% Li2O including 4.12 m @ 1.66% Li2O
• 5.11 m @ 1.24% Li2O including 4.02 m @ 1.36% Li2O
• 3.65 m @ 1.13% Li2O including 2.87 m @ 1.4% Li2O
• 4.69 m @ 1.12% Li2O including 2.09 m @ 1.47% Li2O
• 6.09 m @ 1.04% Li2O including 1.9 m @ 1.58% Li2O
Average of these 9 channels:
1.35% Li2O incl. high-grade zones @ 1.57% Li2O
Adrian Lamoureux (President and CEO of 92 Resources) commented on November 8 when disclosing channel sampling results from D12:
“The initial channel sampling program at the LU D12 pegmatite exceeded our expectations, with strong mineralization demonstrated throughout, this was bolstered by the discovery of some very encouraging tantalum grades. Planning is underway for a winter exploration program of delineation drilling to confirm the dimensions of this mineralized body and to collect a small bulk sample for mineral processing. The potential for further discovery on the Property remains high, with sample analysis for several newly discovered spodumene bearing pegmatite bodies yet to be received.”
Up to 90 cm long spodumene crystals have been noted at Hidden Lake. The spodumene content of D12 at surface is observed to range from up to 20% with sub-intervals to 35%. The spodumene within the Yellowknife District is described as “generally light in colour and of good quality”, indicating a simple mineralogy (i.e. highly favourable metallurgy for subsequent processing into a saleable 6% Li2O concentrate). The average spodumene content in Nemaska’s Whabouchi Lithium Deposit in Québec is about 20% with light-blue spodumene crystals reaching up to 30 cm in size.
D12 and HL6: Not 2 But 1 Pegmatite?
• As reported in today’s news, a first grab sample from HL6 returned 1.86% Li2O, which is about the same grade as channel sampling revealed at the near-by D12 pegmatite (1.9% Li2O @ 9 m).
• As the figure indicates, both D12 and HL6 occur on the same trend and could be connected to eachother below surface, i.e. it’s 1 (very large) pegmatite and not 2 separate ones. As 92 Resources stated in today’s news: “It is possible that HL6 is related to D12, given its similar character and location along trend.”
• Aerial imagery indicates potential pegmatite outcrops between HL6 and D12, therefore suggesting that it’s 1 very large pegmatite occurring below surface under shallow cover.
• The upcoming drill program will test this interpretation. If indeed HL6 and D12 are connected to eachother, the total strike length of that single spodumene-rich body could potentially exceed 1,800 m (monstrous).
• Of the 85 channel samples collected from D12, a total of 52 returned >1% Li2O, with 34 samples returning >1.5% Li2O to a peak of 3.08% Li2O.
Below grab sample returned 3.06% Li2O showing large spodumene crystals with a white to light-greenish colour:
Picture to the right: The spodumene-rich D12 pegmatite dyke outcrops extensively and could extend all the way, below surface and along trend, to the known pegmatite outcrop HL6 in the south.
The Big Picture
• To date, 4 spodumene-bearing pegmatites have been tested with channel sampling this summer. All 4 pegmatites returned lithium grades comparable to other world-class spodumene deposits, i.e. exceeding a general industry-wide cut-off grade of 0.75% Li2O.
• Of the 223 samples collected from the HL1, HL3 and HL4 pegmatites, a total of 101 returned grades at >1% Li2O, with 59 samples returning >1.5% Li2O to a peak of 3.31% Li2O.
• The HL1, HL3 and HL4 pegmatites were sampled over a combined intermittent strike length of approximately 1,805 m. However if the pegmatites continue below surface, the total lengths of these 3 bodies may very well exceed 2,000 m:
HL1: >700 m strike length
HL3: >800 m strike length
HL4: >500 m strike length
• The total strike length of the D12 pegmatite is >300 m (potentially >1.800 m).
• A total of 10 grab samples were also collected, resulting in the discovery of 2 additional lithium-bearing pegmatites: HL6 and HL8.
• A grab sample from HL6, located about 1,400 m along trend to the southwest of D12, contained 1.86% Li2O. As per today’s news: “It is possible that HL6 is related to D12, given its similar character and location along trend.”
• A grab sample from HL8 contained 0.47% Li2O and is located 2.5 km northwest of Highway 4 (Ingraham Trail). Upcoming channel sampling may bring about higher grades, especially when considering that 2 other outcropping pegmatites have been spotted in close proximity (to be sampled during the next exploration phase).
• A total of 6 lithium-bearing pegmatites have been sampled on the property to date (4 of these were tested with channel sampling), all of which host significant lithium concentrations.
• 5-7 additional pegmatites outcrops have been identified on the property and should get sampled for the first time with the next exploration phase.
• Overall, about 12 outcropping pegmatites have been identified on the property to date, whereas more pegmatites (hidden; i.e. no surface expression) could be found below a shallow surface cover.
• Due to the property hosting numerous spodumene-rich pegmatites with average grades exceeding 0.75% Li2O, it has great potential to be identified as a world-class lithium project in 2017.
• The discovery of elevated concentrations of tantalum mineralization from the D12, HL1, HL3, and HL4 pegmatites (up to 596 ppm Ta2O5 with an average of 64 ppm) is a potentially significant discovery. Often, tantalum and lithium are strongly zoned with mineralized pegmatite bodies; however, meaningful zone overlap may exist and has been demonstrated in the past through co-production in other deposits known worldwide. Anomalous rubidium and beryllium mineralization has also been identified, but will require further analysis.
• A sampling and winter drilling program is expected to start in early 2017.
For Perspective: Other World-Class Spodumene Deposits
As can be seen with the accompanying figures from Deutsche Bank‘s research “Welcome to the Lithium-ion Age“ (May 9, 2016), the average deposit grades of most world-class spodumene deposits range between 1% and 1.7% Li2O, and rarely exceed 2%.
According to Deutsche Bank (“DB“):
“There are three major lithium projects that have been committed to and are expected to enter production within the next 24 months. The Mt. Cattlin spodumene project [in Western Austrlia] is an existing operation owned by Galaxy Resources that has been on care & maintenance since 2013. General Mining is earning into Mt. Cattlin up to 50% (for A$25m) and is the operator. The restarted operation is expected to produce 100ktpa Li2O spodumene concentrate, equivalent to 13kt LCE. The Mt. Cattlin mining operations include open-pit mining of what is a relatively flat lying pegmatite ore body. Mining is carried out using excavator and truck operations and conventional drill and blast techniques. Contract mining is used for grade control drilling and earthmoving operations (drilling, blasting, load, haul and ancillary work) for the open-cut mining operation. The Life of mine for Mt. Cattlin is projected to be17 years at 800ktpa.“
Mt. Cattlin‘s total resource averages 1.08% Li2O. The Mt. Marion Deposit is also located in Western Australia and averages 1.39% Li2O:
According to DB:
“The Mt. Marion spodumene project is a joint venture between Mineral Resources, Neometals and Jianxi Ganfeng. The operation is currently under construction (A$50m capital budget) and will commence commissioning in June/July. The plant will produce 200ktpa 6% Li2O spodumene concentrate, equivalent to 27kt LCE.“
The 3rd committed project, according to DB, is Albermarle‘s La Negra Lithium Brine Project in Chile.
As per below figure from DB, the Mt. Marion Project includes 6 separate spodumene deposits, each planned to be mined with its own open-pit, and 1 processing plant on site to crush and upgrade all ores to a saleable 6% Li2O concentrate:
Below cross-section shows one of the pegmatites lying flat below a shallow cover with no apparent expressions at surface. Drill results vary between 0.55% and 1.87% Li2O:
According to DB:
“The downside of brine operations is that they are more capital intensive than hardrock operations, incur significant lead times to meaningful production (technical and geographical challenges), require economies-of-scale and have a long resonance time influenced by evaporation rates...
We expect supply to increase by 18% this year to reach 201kt LCE, however this will still not meet global demand (DBe 209kt LCE). As global lithium demand increases over coming years, hard-rock operations will be able to respond to market conditions much faster than their brine counterparts...
Spodumene ores are crushed grinded and liberated into a 6% Li2O concentrate that can be used in industrial markets or converted downstream into batterygrade products...
With the recent lithium feedstock shortage in China, a number of low-grade, high cost deposits have been restarted to sell to downstream processors...“
92 Resources Corp.
#1400 – 1111 West Georgia Street
Vancouver, BC, Canada V6E 4M6
Phone: +1 778 945 2950
Shares Issued & Outstanding: 45,171,623
Canadian Symbol (TSX.V): NTY
Current Price: $0.17 CAD (11/25/2016)
Market Capitalization: $8 million CAD
German Symbol / WKN (Tradegate): R9G2 / A11575
Current Price: €0.117 EUR (11/25/2016)
Market Capitalization: €5 million EUR
Report #7: “High-Grade Lithium and Tantalum confirmed by Channel Sampling“ (November 8, 2016)
Report #6: “Crews mobilized for next phase of exploration on the Hidden Lake Lithium Property in NWT“ (August 16, 2016)
Report #5: “92 Resources snags hard-rock lithium property in Quebec“ (July 26, 2016)
Report #4: “Why 92 Resources looks ready for the next upswing“ (June 20, 2016)
Report #3: “Extremely high-grade lithium assays from surface“ (June 7, 2016)
Report #2: “Untapping Canada‘s Hidden Lithium Treasuries“ (March 1, 2016)
Report #1: “92 Resources on the case for Hard Rock Lithium“ (April 11, 2016)
Disclaimer: Please read the full disclaimer within the full research report as a PDF (here) as fundamental risks and conflicts of interest exist.