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Forrestania Grow Canadian Lithium Holdings

10 July 2023 13:59
ASX: FRS
Surveyer

Just over two months after stepping into the compelling lithium project, Forrestania Resources has grown its interest in the Hydra Lithium Project in Quebec to 50 per cent, entering into a joint venture with ALX Resource Corp to develop the promising pegmatite project.

Opportune Option

Covering a massive 293 square kilometres, the Hydra Lithium Project comprises 6 sub-projects, all of which overlie or are positioned on the margin of a number of highly prospective greenstone belts, with the Project sitting in the same region 40.33 million tonne James Bay Lithium Project and the 31.5 million tonne Rose Project.

Outcropping pegmatites have already been uncovered at the Volta, Sprite, Nike and Echo sub-projects, with Volta being of particular interest due to its proximity to the Corvette deposits which sit just 20km away and saw significant lithium intercepts up to 159.7m @ 1.65% Li 2O and 86.2m@2.13% Li 2O in the past 12 months.

While pegmatites have yet to be mapped on the Viper and Cobra sub-project, they also show promise by lying only 50km north of and hosting a similar greenstone belt setting to the Mia Lithium Project, where sampling of spodumene-bearing pegmatites showed significant lithium grades up to 4.37% Li 2O.

Partnering Up

The Company first moved to create the strategic joint venture in May, entering an agreement to earn up to 50 per cent of the Canadian project by matching the staking and exploration commitment ALX made for the 2023 field season.

With Forrestania having fulfilled this commitment, a 50/50 joint venture has been formed over the Project, with the two parties now working to formalise this joint venture agreement to explore and administer the properties.

ALX is expected to act as the operator for the Project, with its high-quality and highly experienced team taking the lead on exploration which is expected to commence in the coming weeks, providing Forrestania with a cost-effective and immediate entry to an extremely prospective district.

Looking Ahead

The fieldwork comprises of systematic prospecting, geological mapping and geochemical sampling across a number of the sub-projects, set to commence in the coming weeks, with a proprietary artificial intelligence process for pegmatite detection currently being used to determine target prioritisation for the programme.

Alongside upcoming fieldwork, work is already underway to survey for prospective LCT pegmatites, with airborne and photogrammetric surveys to provide additional geophysical, topographic, and aerial visual information to aid in the location and mapping of pegmatite bodies currently planned.

Due to the proximity to a number of high-profile discoveries, the Company said there is obvious potential for it to uncover additional lithium-caesium-tantalum (“LCT”) type pegmatites, and lithium resources on the Projects tenure.

“We are very pleased to have formalised the joint venture with ALX to become 50:50 partners in the Hydra Lithium Project,” Forrestania’s Managing Director Micheal Anderson said.

“From our perspective, securing a strategic foothold in the dynamic James Bay lithium space is hugely complementary to our existing project portfolio back at home in Western Australia and provides us with significant additional discovery potential. We very much look forward to collaborating with ALX to unlock that potential.”

FRS’ Australian Stock Exchange-listed share price has risen 2.86 per cent today, currently selling at 12.5c (1.43 pm UTC+ 8 hours).

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