Pinnacle Minerals (ASX:PIM) receives a $500,000 USD offtake payment from the Electrification and Decarbonization AIE LP (E&D Fund), a subsidiary of Waratah Capital Advisors, in payment for up to 25% of the rights of any mineral extracted from the Adina East Lithium Project, located in the prolific James Bay region of Quebec, Canada.
Figure 1: James Bay Province Highlighting Adina East Project Location
The offtake payment significantly strengthens the Company’s balance sheet and will enable Pinnacle Minerals to employ sufficient capital to explore its portfolio throughout 2024.
Exploration at the Project
The Adina East Project comprises 147 claims spanning 72.7 square kilometres, situated alongside a interpreted extension of the Trieste greenstone belt and thriving lithium projects.
Winsome Resources’ recently announced the Adina Project’s initial maiden resource estimate is 59Mt at 1.12% Li2O, serving to highlight the lithium mineralisation potential of the area and provide Pinnacle with confidence in its exploration of the region.
Pinnacle has already made significant strides in its exploration endeavours of the Adina East Project, conducting a first pass, ground reconnaissance program, which obtained 14 pegmatite outcrops and boulder samples, several which contained Aluminous minerals.
The Company is still awaiting the results from this fieldwork, conducted in October, by geological consultants IOS.
The aim of the fieldwork program was to identify potential LCT pegmatites and spodumene mineralisation by following up on historically mapped pegmatite outcrops and a number of lithium targets generated through detailed satellite and radar imagery analysis.
Satellite and radar analysis completed at Adina East identified multiple areas of interest with 60 discrete targets for follow-up field investigation.
Pinnacle has identified two noteworthy clusters of targets through radar imagery analysis, with the primary cluster situated in the central southern part of the claim area, aligning with the mapped pegmatites in Winsome Resources’ Tilly Project. Additionally, a secondary target has been identified on the eastern flank of the Project area.
The results from the initial fieldwork are expected to be available in early January 2024, with Pinnacle planning to report these to market as soon as possible.
Pinnacle Minerals Managing Director Nic Matich commented on the acquisition.
“Having now closed the Adina East Lithium Project acquisition, Pinnacle has moved to develop an extensive exploration program for 2024 to unlock the full potential of the Project,” he said.
“We have the advantage of a fresh capital injection with the US $500,000 offtake payment, supportive project partners in Waratah and an expert exploration team both in-house and from IOS in Quebec.”
PIM’s Australian Stock Exchange-listed share price has risen 6.67% and is currently trading at $0.16 (9.00am UTC+ 8 hours).