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Lithium Co. Uncovers Exciting Resource in Canada

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Frontier Lithium has announced the drill results from its Spark Deposit or PAK Lithium Project. Read on to see why analysts like this company's stock.

Frontier Lithium Inc. (FL:TSX.V; LITOF:OTCQX; HL2:FRA) has announced in a press release that it has the drilling results from its operations on the Spark pegmatite this year. According to Frontier Lithium, several highlights of the results include drill hole PL-133-23 and PL-100-23, and Channel samples CH-52 and CH-53.

Frontier Lithium reports that the DDH PL-133-23 drill hole uncovered 108.4m of pegmatite, which extended the range of the Spark pegmatite by 90m west and contained an average of 2.12% lithium oxide (Li2O)., while DDH PL-100-23 uncovered 134.3m of pegmatite, which contained an average of 1.27% Li2O. The company reported in the press release that CH-52 and CH-53 uncovered an average of 2.16% Li2O over 18.0m of pegmatite.

These drill results are a continuation of the company's drilling during the spring season, the press release reports, where it drilled out PL-100-23, PL-101-23, and PL-102-23, which returned some lithium but had to be halted due to weather conditions.

However, the company reports that this drilling did provide an expanded vision of the pegmatite deposit.

The company was positively reviewed in a research report from Canaccord Genuity last year. According to the report, which reviewed another batch of drill results from the Spark project, the company is rated as a "speculative buy" for investors with a target price of CA$4.00.

According to Garth Drever, the Vice President of Exploration for Frontier Lithium, "the most recent findings consistently indicate the possibility of expanding the Spark resource both at greater depths and along the geological strike. We are excited about delving deeper into the newly discovered Spark extension, which has yielded high-grade channel sample values."

"Although it is early stage, there are strong similarities with the high-grade intersection in hole PL-133-23 and the Spark extension channels. Exploring potential connection to the primary Spark deposit is one of our objectives for 2024."

A Topic of Interest

According to Stockhead, lithium has been a topic of great interest for North American investors. Stockhead reports that, according to Goldman Sachs, lithium prices are expected to pick up again in 2026.

A History of Success

Chris Temple of The National Investor listed the company as an attractive and creative investment proposition for investors in 2021. According to Temple, the company's Spark property has high-grade mineralization that makes it extremely attractive, and "it is simply a matter of time before Frontier announces one (or more) deals such as Piedmont's with Tesla."

The company was positively reviewed in a research report from Canaccord Genuity last year. According to the report, which reviewed another batch of drill results from the Spark project, the company is rated as a "speculative buy" for investors with a target price of CA$4.00.

Frontier Lithium has a number of catalysts related to its infrastructure development, according to the company's investor presentation. According to Frontier Lithium, the company is developing power lines in partnership with First Nations communities that are expected to be completed in 2024. The company also reports that in H1 of 2027, it will begin spodumene concentrate production, and in H2 of that year, it will begin construction of a chemical plant.

Ownership and Share Structure

streetwise book logoStreetwise Ownership Overview*

Frontier Lithium Inc. (FL:TSX.V; LITOF:OTCQX; HL2:FRA)

*Share Structure as of 9/28/2023

Reuters has provided a breakdown of the company's ownership and share structure, where management and insiders own 14.86% of the company. According to Reuters, Executive Chairman Reginald F. Walker owns 12.49% of the company with 28.43 million shares, Vice President of Exploration Garth Lloyd Drever owns 0.98% of the company with 2.22 million shares, President and CEO Trevor Walker owns 0.52% of the company with 1.19 million shares, director John Ralph Didone owns 0.47% of the company with 1.07 million shares, and director Marian Koziol owns 0.40% with 0.92 million shares.

According to Reuters, institutions own 2.45% as Commodity Capital AG owns 1.09% of the company with 2.49 million shares, Amati Global Investors Limited owns 0.69% of the company with 1.58 million shares, Picton Mahoney Asset Management owns 0.33% of the company with 0.75 million shares, Purpose Investments Inc. owns 0.17% with 0.40 million shares, and CI Global Asset Management owns 0.17% with 0.38 million shares.

Reuters reports that the company has 227.63 million shares outstanding, with 192.9 million free-float traded shares. According to Reuters, the company has a market cap of CA$184.42 million, and trades in the 52-week period between CA$1.03 and CA$3.04.

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Important Disclosures:

  1. Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. 
  2. 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.

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