London-listed Power Metal Resources has signed an earn-in agreement through its Canadian subsidiary, allowing the company to work towards 100 per cent interest in two Canadian lithium pegmatite exploration properties amidst the sustained ascent of prices on minor metals markets.
Under the deal, the company will explore the Authier North and Duval East properties situated in the prolific Val D’Or mining camp in Quebec, Canada.
Authier North is adjacent to Sayona Mining’s 12.1 million tonne project. Duval sits east of a northwest-southeast trending lithium pegmatite dyke, boasting historical drilling intersections equivalent to two metres of lithium oxide 1.38 per cent.
“Today’s announcement brings a focussed and high-impact lithium opportunity into the Power Metal Canada business,” chief executive Paul Johnson said.
“We believe that lithium is an important strategic commodity to have within our portfolio. However, as an exploration and development company what matters most is the quality of opportunity, which we think we have with these two Earn-in properties.
“One property is situated adjacent to a major lithium Reserve that offers significant exploration potential, and the second property is interpreted to host the open eastward extension of a historical lithium deposit delineated in the 1950s, which holds potential subject to further drilling.”
Fastmarkets lithium hydroxide price had risen by more than 3 per cent since mid-June, with spot prices to China, Japan and Korea finishing at $US15.50 a kilogram last week.