Lithium Corp. Makes Exciting Discovery, Unexplored Land Contains Potential for More

Frontier Lithium (TSX.V:FL; FRA:HL2; OTCQX: LITOF) has two announcements: it is beginning maiden drilling on an untested section of the PAK Lithium Project, and it has an updated mineral resource estimate for the Spark deposit.

Frontier Lithium is focused on lithium minerals and salts, resources that it intends to support the production of batteries and electric vehicles. Its flagship property is the PAK Lithium Project, which contains both the PAK deposit and the Spark deposit. Frontier's goal is to be in the top three for contained lithium size in North America.

Exploration and Estimate Results

Frontier Lithium reports that they have plans to begin drilling on a previously untested portion of their claim. The company has an exploration target of 100 million tons of open pit resources and a Phase 13 Diamond Drill Program goal of up to 10,000 meters. The company will commence with maiden drilling in the spring on the 600m Bolt pegmatite.

Frontier Lithium has already commenced with the geotechnical and environmental drilling on the PAK deposit. The company is planning to test the western extension of the Spark deposit with exploration drilling. Lastly, Frontier Lithium reports that they will continuously conduct environmental baseline studies to move to permit forwards.

 Frontier Lithium has stressed that they are particularly excited by the maiden drilling on the Bolt pegmatite, which will be comprised of six drill holes.

According to Garth Drever, the VP of Exploration, "It's exciting times to substantially increase a world-class spodumene pegmatite like Spark with what we anticipate from drilling the Bolt pegmatite. Although not visibly connected on surface, drilling may confirm continuity at depth."

Richard Mills of Ahead of the Herd noted at the end of January 2023 that for the first time in history, the amount invested in green energy was equal to the amount invested in fossil fuels at US$1.1 trillion. Of these investments, electric vehicles and green power sources saw the largest portions.

Frontier Lithium has also released an updated mineral resource estimate for the Spark deposit. With regards to lithium (Li2O), the estimate is as follows: 18.8 million tons averaging 1.52% Li2O, representing a 30% increase in the Indicated category, and 29.7 million tons averaging 1.34% Li2O, representing a 64% increase in the Inferred category.

In addition to Lithium, the estimate revealed an indicated 84 parts per million (ppm) of Niobium Oxide (Nb2O5), an inferred 77 ppm Nb2O5, an indicated 0.02% Cesium Oxide (Cs2O), and an inferred 0.03% Cs2O, an indicated 112 ppm Tantalum Oxide (Ta2O5), and an inferred 116 ppm Ta2o5, an indicated 0.26% Rubidium Oxide (Rb2O), and an inferred 0.26% Rb2O, and an indicated 61 ppm Tin Oxide (SnO2), and an inferred 74 ppm SnO2.

Garth Drever commented on the finds, "we are very pleased to announce a substantive increase of the size of the Spark deposit following over 16,00m of drilling and channeling completed in 2022. Particularly encouraging is the increased lithium grade from 1.40% to 1.52% Li2O of the indicated category . . . The grade increase together with the previously released results, further support the ensuing PFS."

Lithium: Green Energy and Government Interest

While Lithium has not increased in value as much as investors may have hoped, it is still seeing wide demand, which is in part bolstered by green policies. Richard Mills of Ahead of the Herd noted at the end of January 2023 that for the first time in history, the amount invested in green energy was equal to the amount invested in fossil fuels at US$1.1 trillion. Of these investments, electric vehicles and green power sources saw the largest portions.

At around the same time, in late January of 2023, Reuben Adams of Stockhead reported that lithium was doing extremely well in the markets. Adams makes the point that although analysts, including Goldman Sachs, predicted a lithium crash before the time of the article, no crash had materialized. Lithium has seen a slight downturn since but not a definitive crash.

According to Bevis Yeo of Stockhead, governments are ramping up their interest in lithium as a path to green energy. German Chancellor Olaf Scholz and Chinese President Xi Jinping both journeyed to Latin America in February to secure access to South American lithium supplies.

Michael Ballinger states that Australia is currently the top producer, but as the report from Stockhead makes clear, there is still competition on the international stage for supply.

Exploration and Community Partnerships 

In the long term, further exploration drilling will target and map out the "high grade" zone that was intersected in the northwest of the deposit. This includes the one-kilometer area between Spark and the new pegmatite that was discovered through grab samples.

According to Frontier Lithium, two pegmatites on the property have yet to be investigated, and the 27,000h of land on its property remains unexplored. Overall, the mine is expected to have approximately twenty-five years of life.

Additionally, Frontier Lithium maintains a partnership with the First Nations communities surrounding the PAK Project. The company is conducting several infrastructure projects in partnership with these communities, including the Watay Power Project and the Berens River Bridge and Roads Project. Both projects are funded by the government.

The Watay Power Project is expected to be completed in 2023 to 2024 and will service 17 First Nations Communities. The Berens River Bridge and Road Project also includes measures to winterize the local network of bridges and roads.

Ownership and Share Structure

Frontier Lithium has 224.11 million shares outstanding. The board and management own 17% of the company, with Institutions holding 15%, private investors owning 13%, and the general public holding 55%. Among the management team, Garth Drever owns 2.22 million shares, Trevor Walker owns 1.19 million shares, and David Ewing owns 0.23 million shares.

As for institutions, Amati Global Investors Limited owns 1.58 million shares, CI Global Asset Management owns 0.68 million shares, and Stonecastle Investment Management Inc. owns 0.44 million shares. 

They work with a number of analysts, including Wayne Lam of RBC Dominion Securities Inc., Cole McGill of Stifel Nicolaus Canada Inc., Brandon Smith of Cormark Securities Inc., and Katie Lachapelle of Canaccord Genuity Capital Markets.

Frontier Lithium has a market cap of CA$462.55 million, and trades in the 52-week period between CA$1.30 and CA$3.89. 

Disclosure:
1) Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports. He/she or members of his/her household own securities of the following companies mentioned in the article: None. He/she or members of his/her household are paid by the following companies mentioned in this article: None. His/her company has a financial relationship with the following companies referred to in this article: None.

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