Power Metal Resources (LSE:POW) subsidiary strategy continues to pay off, with exploration now commencing at the North Wind Lithium Project held by Powers 100% owned subsidiary Ion Battery Resources.
Chasing Canadian Lithium
Ion’s exploration crews are now being mobilised to the site for what will be the Project’s first-ever lithium-focused exploration program, with planned activities including prospecting, geochemical sampling and rock chip sampling of a number of zones of interest.
Figure 1: North Wind Lithium Project Overview Map
Located in Ontario, North Wind comprises 57.89 square kilometres of land on the province’s Onaman-Tashota Greenstone Belt, which is considered highly prospective for lithium-caesium-tantalum (LCT) bearing pegmatite occurrences, with the region hosting projects like the Jackpot Lithium Project which has a reported historical non-compliant resource of 2,000,000 @1.09% Li2O.
Work will in particular follow up on a previous lake sediment sampling program undertaken by the Ontario Geological Survey which returned a number of highly anomalous concentrations for lithium, caesium and tantalum and indicated that the project may host a a zoned LCT-bearing pegmatite system.
Despite the potential unveiled by the Ontario Geological Survey, North Lake has yet to see any lithium-focused exploration and as such the now-underway program will provide Ion with geochemical datasets that will provide critical insight into the projects geology and allow for vectoring towards potential LCT Pegmatites.
The planned work program is in line with Power’s ongoing strategy of realising project value through spinout listings, which sees it acquiring highly prospective exploration assets in mining-friendly jurisdictions, conducting initial exploration to determine asset value and then making the most of this value through spin-out listings, joint venture or outright sale.
This strategy of spin-out listings has been a proven success for Power, demonstrated most recently by the massive success of its Nevada-focused subsidiary Golden Metal Resources’ £1.98m listing its Candian-focused spin-out First Class Metals winning IPO of the year from UK Investor magazine.
And it is not just Power that benefits from the strategy as its spin-outs as the listing will benefit POW’s capital power and connections, demonstrated most recently by Power securing the Authier North Lithium Project for Ion after negotiating the early completion of an earn-in deal.
Power Metals said that with Ion it sees an opportunity to create considerable value through a material investment in active lithium exploration.
“Based on studies conducted by the Ontario Geological Survey, and highly anomalous lake sediment sampling results, the North Winds Project area is considered highly prospective for lithium pegmatite exploration, and the significant opportunity means we are moving ahead at pace with this programme,” Chief Executive Sean Wade said.
“As is the case across our portfolio, we aim to undertake methodical and cost-effective exploration, and we look forward to updating shareholders on the results in due course. Ion currently represents a small part of the Power Metal global project portfolio. However, it is shaping up well and we expect to confirm Ion’s planned crystallisation pathway in the coming months.”
POW’s London Stock Exchange-listed share price is currently trading at 0.73 British pence (12:22 pm UTC+ 8 hours).