Nemaska Lithium Discovers New Lithium-Bearing Zone at Whabouchi


Nemaska Lithium has expanded the drill program at its Whabouchi lithium project following discovery of a new lithium-bearing zone, leading analyst David Talbot of Dundee Capital Markets to reiterate the investment thesis for Dundee's top lithium pick.

In its Sept. 6 press release, Nemaska Lithium Inc. (NMX:TSX; NMKEF:OTCQX) announced it had expanded its drill program "from 44 drill holes over 13,700 m to 50 holes over 17,000 m after [encountering] a new lithium bearing zone in the southwestern end of the planned pit area." The new mineralized zone has been dubbed Doris.

In a Sept. 6 research report, David Talbot of Dundee Capital Markets wrote, "With this new discovery a bonus, Nemaska appears to be well on its way to achieving its three drilling objectives for this fall: 1) upgrade 4.79 MM t of in-pit inferred resources; 2) increase resource confidence between surface and 200m vertical depth; and 3) confirm continuity and potentially extend mineralization down to 500m vertical depth."

Addressing his assertion that Doris could improve the economics of Nemaska's project, Talbot wrote, "New shallow lithium mineralization potentially could positively impact the existing Feasibility Study (assays pending)."

In addition, the Doris Zone's proximity to the existing Whabouchi pit means "it may be close enough to consider incorporating into early open pit production schedules," according to Talbot.

In addition, the company stated that, thus far, the drill program at Whabouchi has "generally encountered mineralization where expected, further increasing the confidence in the existing block model, which has fundamentally held intact since its initial inception."

Talbot reiterated Dundee's Buy rating for Nemaska, with price target of CA$2.30.

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1) Tracy Salcedo compiled this article for Streetwise Reports LLC. Tracy Salcedo provides services to Streetwise Reports as an independent contractor. She owns, or members of her immediate household or family own, shares of the following companies mentioned in this article: None. She is, or members of her immediate household or family are, paid by the following companies mentioned in this article: None.
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