Valor Resources Limited (ASX: VAL) has announced exclusive option agreements to acquire 100% of the Frazer Lake, Morrison River, and Jesaulenko Lithium Projects in north-western Ontario, Canada, providing a significant opportunity for the Company to strengthen its new energy metals portfolio in North America.
Figure 1: Frazer Lake Lithium Project – Exceptionally Coarse Spodumene Crystal
Frazer Lake Lithium Project
The Frazer Lake Lithium Project, spanning 83.1 square kilometres in north-western Ontario, has exhibited compelling lithium potential since its initial spodumene discovery in August 2023, with rock chip samples returning up to 7.25% Li2O.
Notable findings feature 44m at 0.54% Li2, including 3m at 0.97% Li2O, 3m at 1.27% Li2O, 1m at 1.76% Li2O and 2m at 0.87% Li2O. Moreover, multiple significant rock chips have been identified, reaching up to 7.26% Li2O.
The Project holds additional potential with a wide, unexplored, 30m outcrop of spodumene-bearing pegmatite along the northeast strike, yet to undergo drill testing. To further understand the mineralisation’s extent, channel sampling along the strike is proposed during the option period.
Figure 2: Location of the Pegmatite One assets and the Jesaulenko Lithium Project in northwestern Ontario.
Figure 3: Plan View of Frazer Lake Channel Sample and Li2O assay values
Morrison River Lithium Project
The Morrison River Lithium Project, spanning 55 square kilometres, is strategically positioned just north of the Muskrat Dam First Nation settlement and in proximity to the Bearskin Lake and Sachigo Lake First Nations communities.
Situated within a greenstone belt surrounded by potentially fertile granitic batholiths, the Project holds promise for hosting spodumene-bearing pegmatites.
Mapping by the Ontario Geological Survey (OGS) has identified five white pegmatite dykes within the greenstone belt, trending over a significant 13km strike length.
Notably, the Project shares a geologically analogous setting with Frontier Lithium’s PAK Lithium Project, located approximately 150km to the southwest.
The PAK Lithium deposit holds substantial resources, including open pit Measured and Indicated Resources of 5.96Mt @ 1.81% Li2O and underground resources of 1.26Mt @ 2.14% Li2O, making the Morrison River Project a strategically significant asset within this lithium-rich geological context.
Figure 4: Morrison River Project Geology
The Jesaulenko Project, spanning 46 square kilometres in the Thunder Bay district of north-western Ontario, Canada, boasts a strategic location with direct highway access.
Positioned 21km west-southwest of Rock Tech Lithium‘s Georgia Lake Project, which features substantial lithium resources, including an Indicated Mineral Resource of 10.6Mt @ 0.88% Li2O and an Inferred Resource of 4.2Mt @ 1% Li2O, the Jesaulenko Project holds considerable promise.
Production at the nearby Georgia Lake Project is set to commence in 2025.
The Jesaulenko Project, with its geological setting akin to Georgia Lake, presents an immediate opportunity for evaluation due to extensive outcrop areas and potential for Lithium-Caesium-Tantalum (LCT)-type pegmatites.
Figure 5: Jesaulenko Lithium Project Location & Geology
Capital Raising, Acquisitions, & Strategic Changes
In tandem with acquiring three prominent lithium projects in north-western Ontario, Canada, Valor Resources is set to raise A$1 million through a share placement, offering 250,000,000 VAL shares at an issue price of $0.004.
The funds will support exploration during the due diligence phase and initial field-based exploration activities for the acquired projects, emphasising Frazer Lake.
Figure 6: Channel Sample mark-up
Additionally, Valor Resources plans a capital consolidation on a 25-for-1 basis and a proposed name change to Thunderbird Resources Ltd, subject to shareholder approval at a scheduled general meeting in early 2024.
Project-Specific Option Agreements
Valor Resources has secured exclusive option agreements with Pegmatite One Lithium and Gold Corp (CSE:PGA) for the Frazer Lake and Morrison River Lithium Projects.
These agreements involve share issuances and cash payments, providing Valor Resources the opportunity for 100% acquisition, subject to shareholder approval.
Additionally, an acquisition agreement has been finalised for the Jesaulenko Lithium Projects through the acquisition of Stratosphere Li Pty Ltd, with consideration set at 312,500,000 shares at $0.004 per share (pre-consolidation basis) upon completion.
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Valor Resources Executive Chairman George Bauk expressed enthusiasm for Valor Resources’ acquisition of a high-quality lithium exploration portfolio in Canada, citing it as a significant opportunity to expand the Company’s exposure to new energy metals.
“The option to acquire a high-quality lithium exploration portfolio in Canada presents an outstanding opportunity for Valor to significantly expand our exposure to the burgeoning new energy metals thematic,” he said.
“These acquisitions will form a complementary addition to Valor’s existing portfolio of high-quality uranium projects in the Athabasca Basin, Saskatchewan and build upon our Canadian expertise.”
He highlighted the exceptional mineralisation potential at the Frazer Lake Lithium Project, emphasising the recent and limited exploration of high-grade lithium findings by Pegmatite One.
Additionally, he noted the promising Jesaulenko Project, highlighting the potential lithium mineralisation from metasediments intruded by muscovite-bearing granites.
Valor Resources plans to conduct mapping and geochemical sampling across the Morrison River and Jesaulenko Projects to define targets for upcoming drill testing, with a commitment to providing subsequent updates on these dynamic transactions.
“Mapping and geochemical sampling is proposed to be completed across the Morrison River and Jesaulenko Projects in order to define targets for drill testing. We look forward to providing further updates in relation to these exciting transactions.”
VAL’s Australian Stock Exchange-listed share price has risen 14.29% and is currently trading at $0.004 (7.15am UTC+ 8 hours).