Exploration and development company Power Metal Resources announced on Friday that its wholly-owned Canadian subsidiary Power Metal Canada has signed an earn-in agreement, through which it could acquire a 100% interest in two Canadian lithium pegmatite exploration properties.
The AIM-traded firm said the properties were Authier North and Duval East, situated in the “prolific” Val D’Or mining camp in the province of Quebec.
It said Authier North was adjacent to Sayona Mining’s flagship Authier Lithium Project, which had reported JORC-compliant total reserves of 12.1 million tonnes at 1.0% lithium oxide, at a cut-off grade of 0.55%.
Sayona had a current market capitalisation of about AUD 393m (£211.02m).
Duval East, meanwhile, was “immediately adjacent” and east of a northwest-southeast trending lithium pegmatite dyke which was drilled in 1955, with reported intersections equivalent to to two metres at 1.38 lithium oxide.
The easternmost historical drill hole on the dyke fell within the property boundary, with the dyke postulated to extend into the claim.
“Today’s announcement brings a focussed and high-impact lithium opportunity into the Power Metal Canada business,” said chief executive officer Paul Johnson.
“We believe that lithium is an important strategic commodity to have within our portfolio.”
However, Johnson said that as an exploration and development company, the quality of the opportunity was paramount.
“One property is situated adjacent to a major lithium Reserve that offers significant exploration potential, and the second property is interpreted to host the open eastward extension of a historical lithium deposit delineated in the 1950s, which holds potential subject to further drilling.”
At 1339 BST, shares in Power Metal Resources were up 0.24% at 2.08p.
