Valor Resources (ASX:VAL) has recently completed its $1 million placement following landmark Canadian lithium option agreements, with funds anticipated to support the Company’s evaluation and exploration activities.
Figure 1: Location of the Pegmatite One assets and the Jesaulenko Lithium Project in northwestern Ontario.
On December 5, Valor announced a $1 million share placement at $0.004 per share, following the issue and allotment of 250 million new shares.
The Company has outlined that the funds will be used to advance its recently announced multiple option agreements, signed to acquire the entirety of three highly prospective lithium projects in north-western Ontario, Canada.
Fraser Lake Acquisition
The Fraser Lake Lithium Project, located in Ontario, covers an expansive 83.1 square kilometres in known lithium bearing soils.
In August this year, the property yielded a spodumene discovery, with rock chip samples returning concentrations of up to 7.25%, 7.02%, and 6.42% Li2O.
Subsequent channel sampling was carried out to determine the orientation and width of the spodumene bearing pegmatite, finding a logged pegmatite across 47.5 metres of the channel.
Highlights of the channel sampling program included:
- 44 metres at 0.54% Li2O
- Including 3 metres at 0.97% Li2O
- 3 metres at 1.27% Li2O
- 1 metres at 1.76% Li2O
- 2 metres at 0.87% Li2O
Figure 2: Plan View of Frazer Lake Channel Sample and Li2O assay values
Morrison River Acquisition
The Morrison River Lithium Project covers 55 square kilometres in Ontario, Canada, and is strategically located 150 kilometres northeast of Frontier Lithium’s PAK Lithium Project, which comprises of an Open Pit Measured and Indicated Resource of 5.96Mt @ 1.81% Li2O and an Inferred Resource of 0.68Mt @ 1.75% Li2O.
The Ontario Geological Survey (OGS) successfully mapped the Morrison River Project, identifying five white pegmatite dykes within the greenstone belt.
Figure 3: Morrison River Project Geology
The Jesaulenko Lithium Project encompasses 46 square kilometres of contiguous tenure, and is located 21 kilometres west-southwest of Rock Tech Lithium’s Georgia Lake Project, which hosts an Indicated Mineral Resource of 10.6Mt @ 0.88% Li2O, an Inferred Resource of 4.2Mt @ 1% Li2O and a Probable Ore Reserve of 7.33Mt @ 0.82% Li2O.
The Jesaulenko Project geological setting is analogous to Georgia Lake, with the area underlain by Archaean metasediments which have been intruded by muscovite-bearing granites, a potential source of lithium mineralisation.
Figure 4: Jesaulenko Lithium Project Location & Geology
Valor is actively finalising definitive agreements for both the Frazer Lake Property and the Jesaulenko Property, with plans to move forward with a binding agreement for the Morrison River Property.
The upcoming year holds great significance for the Company, driven by these acquisitions and the anticipated capital consolidation, alongside a proposed name change to Thunderbird Resources Ltd, pending shareholder approval in the first quarter of 2024.
Valor Resources’ Executive Chairman George Bauk commented on the transaction.
“We are excited about the opportunity to investigate these three highly prospective lithium properties in northwest Ontario and we are looking forward to getting teams on the ground in the New Year to get this work underway,” he said.
“With the addition of these lithium projects, we now have an exciting portfolio of projects in Canada with a direct link to the global energy transition. Uranium, copper, rare earths and lithium all play a key role in the future energy mix as the global economy decarbonises, and we have an excellent suite of projects in Tier-1 locations with strong potential to help meet growing demand for these critical metals into the future.”
“We are very much looking forward to our work program in Canada in the year ahead. We also maintain a significant exposure to copper in Peru through our free-carried interest with Firetail Resources, with active drilling programs underway in Peru as we speak.”
“Our aim is to finalise the lithium transactions in the first quarter 2024 and will be working to get on the ground as soon as possible.”
VAL’s Australian Stock Exchange-listed share price is currently trading at $0.003 (9.45am UTC+ 8 hours).