Get the Latest Investment Ideas Delivered Straight to Your Inbox. Subscribe


Junior Is Making Lithium Pivot in Quebec

View Important Disclosures for this Article
Share on Stocktwits


Fabled Copper Corp. announced the results of its first-phase sampling program at its OHM lithium property in Quebec. Why is the company so excited about this soft, silvery metal?

Fabled Copper Corp. (FABL:CSE) announced the results of its first-phase sampling program at its OHM lithium property in Quebec, outlining an 8-kilometer by 2-kilometer boulder field with a pegmatite outcropping.

Early reconnaissance on the central part of the property confirmed promising potassium-to-rubidium ratios in two samples, an indicator for lithium.

Elevated lithium was also at least two of 19 samples taken in the boulder field, one that returned 45.8 parts per million (ppm) lithium (Li) and another that returned 15.7 ppm, the company said.

"The purpose of the sampling was to obtain typical pegmatite samples over as great an area as possible to determine if any one area is more favorable for further exploration," the company said in a release. "Hundreds of angular and lesser amount of rounded pegmatite boulders were seen. The center location of the property has pegmatite outcropping/subcropping with the dimensions yet to be determined."

Analysts at Canaccord Genuity, in a May research note, said they believed the market for lithium will see deficits and elevated pricing. "As such, we remain long-term bulls on the sector," they wrote. 

Fabled said the property is made up of 51 contiguous cells over 2,856 hectares about 70 kilometers south of Val d'Or, within easy reach of highways and forest roads. About 80% of the property also has been logged, making outcrop visibility excellent.

At least 10 pegmatite outcrops, which may host lithium deposits, were documented by the property's previous operators, but no documented work has been done searching for lithium within the swarms.

Work was delayed this summer by forest fires in northern Quebec. But a ban on work in the forest was lifted for the property in July, and the first-phase sampling program was completed in one week.

The Catalyst: A New Lithium Hub?

Earlier this year, the company announced it was diversifying its portfolio to include the battery metal, which is important for the new green economy and used for the batteries in just about every gadget you have in your pocket and electric vehicles (EVs).

It acquired several separate Quebec lithium claim blocks while still waiting for permits to drill for copper, silver, and gold at other projects in British Columbia.

"Quebec is going to become the lithium hub of North America," Fabled President and Chief Executive Officer Peter Hawley has said. "They're building the infrastructure and the various plants."

Under the terms of the agreement with the vendors, which include a group of geologists and miners, Fabled may exercise the option to acquire the property after making cash payments of CA$500,000, issuing 1.2 million common shares, and spending CA$1.2 million in exploration costs over two years.

Fabled will also grant the vendors a 3% net smelter return (NSR) royalty. The company can purchase 2% back at any time for CA$2 million under the agreement.

Element to Be a 'Key Trend in the Market'

The global lithium market is expected to reach US$19 billion by 2030, according to a report from Research and Markets.

"Rising investments in lithium mining and related technologies are projected to remain a key trend in the market," the report said. "Lithium mining is witnessing rapid growth as its demand is accelerating owing to its application in batteries."

Patriot Battery Metals Inc.'s (PMET:CA) Corvette lithium project is also in the James Bay district. The company discovered a 4.3-kilometer trend of spodumene pegmatite in 2017. Its market cap was nearly CA$500 million last fall. Now, it's CA$6.95 billion.

Other companies, such as Allkem Ltd. (OROCF;OTCMKTS)Critical Elements Corp. (CRE:TSX.V), and Investissement Québec and Livent Corp. (LTHM:NYSE) have had success developing lithium deposits in the James Bay area.

Another advantage for the area is infrastructure and support from local governments, Hawley said. The company had to use helicopters for as much as CA$5,000 per day to get to exploratory sites in British Columbia. But in Quebec, "you just drive, and you're there," he said.

In addition to the OHM property, Fabled also entered into an agreement to acquire the VOLT 1 property and two other nearby lithium claims totaling 112 hectares.

Long-Term Bulls

Analysts at Canaccord Genuity, in a May research note, said they believed the market for lithium will see deficits and elevated pricing.

"As such, we remain long-term bulls on the sector," they wrote. 

The soft, silvery metal with highly reactive and flammable properties is a major component of electric vehicle (EV) batteries. It's also used to strengthen alloys, as a high-temperature lubricant, and as a drug to treat bipolar disorder.

streetwise book logoStreetwise Ownership Overview*

Fabled Copper Corp. (FABL:CSE)

*Share Structure as of 9/22/2023

China only has less than a quarter of the world's lithium resources but controlled about two-thirds of the world's lithium processing and refining capacity in 2021, Rystad Energy said

Ownership and Share Structure

According to Yahoo Finance, about 3% of the company is held by insiders. They include Director Luc Pelchat with 1.19%, David Smalley with 0.86%, and President and CEO Hawley with 0.65%, Reuters said.

The rest, 97%, is retail.

Fabled Copper's market cap is about CA$1.31 million, with 21.75 million shares outstanding. It trades in a 52-week range of CA$0.30 and CA$0.025.

Sign up for our FREE newsletter

Important Disclosures:

  1. Fabled Copper Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
  2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Fabled Copper Corp. 
  3. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
  4. The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

For additional disclosures, please click here.

Want to read more about Cobalt / Lithium / Manganese, Gold, Base Metals, Battery Metals and Silver investment ideas?
Get Our Streetwise Reports Newsletter Free and be the first to know!

A valid email address is required to subscribe