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TICKERS: FL; LITOF; HL2

Lithium Co. Drills 'Another World Class Hit'
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New results from the Ontario lithium deposit show high grades and significant widths, noted a Canaccord Genuity report.

Frontier Lithium Inc.'s (FL:TSX.V; LITOF:OTCQX; HL2:FRA) recently reported a batch of drill results from the Spark deposit of its PAK project in northwestern Ontario returned "grades well above the current mineral resource estimate (1.37%)" over significant widths, reported Canaccord Genuity analyst Katie Lachapelle in an October 11, 2022 research note. These grades averaged 1.92%, 1.74%, 1.57% and 1.55% lithium oxide (Li2O).

"We continue to be impressed by the positive results from the phase seven drill program," Lachapelle commented.

                "We continue to be impressed by the positive results from the phase seven drill program," Lachapelle commented and provided the best of them.

Standout hole PL-067-22 returned the most impressive mineralized intersection, 326.6 meters (326.6m) of 1.92% Li2O, including 50m of 2.98% Li2O.

Other highlights are:

  • 171.5m of 1.57% Li2O, including 45.3m of 1.86% Li2O and a zone of 19.2m of 2.88% Li2O, 2.23% cesium oxide, and 513 parts per million tantalum pentoxide, in hole PL-065-22
  • 275.3m of 1.74% Li2O, including 30m of 2.32% Li2O, in hole PL-069-22
  • 124.1m of 1.55% Li2O in hole PL-072-22

Implications of the data

Given the high grades of all the Spark drill results to date, the Indicated portion of the mineral resource there will likely have a higher grade, Lachapelle pointed out, and the resource will most probably include new Inferred material. Additionally, Spark remains open in all directions.

Canaccord Genuity has a Speculative Buy rating and a CA$4.75 per share target price on Frontier, the current share price of which is about CA$2.20.

"Based on the consistency of infill drilling to date, we expect the majority of Frontier's existing mineral resource at Spark to be upgraded and included in the mine plan in the future, which could result in a mine life extension of about 14-18 years," wrote Lachapelle.

Focus Going Forward

Lachapelle relayed that now, after completing about 11,150m of drilling in 34 holes, Frontier's priority is defining the boundaries of the pegmatite and deepening some previously drilled holes at depth.

In terms of lithium production, Lachapelle noted, Frontier is speeding it up in a phased approach in concert with increased demand for concentrate. In the first phase, the Canadian company will sell spodumene concentrate from a mine and mill operation. During phase two, it will add production of lithium chemicals.

Canaccord Genuity has a Speculative Buy rating and a CA$4.75 per share target price on Frontier, the current share price of which is about CA$2.20.


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Disclosures:
1) Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Frontier Lithium Inc. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with: None. Please click here for more information.

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Disclosures For Canaccord Genuity Group Inc., Frontier Lithium Inc., October 11, 2022

Analyst Certification: Each authoring analyst of Canaccord Genuity whose name appears on the front page of this research hereby certifies that (i) the recommendations and opinions expressed in this research accurately reflect the authoring analyst’s personal, independent and objective views about any and all of the designated investments or relevant issuers discussed herein that are within such authoring analyst’s coverage universe and (ii) no part of the authoring analyst’s compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by the authoring analyst in the research, and (iii) to the best of the authoring analyst’s knowledge, she/he is not in receipt of material non-public information about the issuer. Analysts employed outside the US are not registered as research analysts with FINRA. These analysts may not be associated persons of Canaccord Genuity LLC and therefore may not be subject to the FINRA Rule 2241 and NYSE Rule 472 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account.

Required Company-Specific Disclosures:  (as of date of this publication) Frontier Lithium Inc. currently is, or in the past 12 months was, a client of Canaccord Genuity or its affiliated companies. During this period, Canaccord Genuity or its affiliated companies provided investment banking services to Frontier Lithium Inc..

In the past 12 months, Canaccord Genuity or its affiliated companies have received compensation for Investment Banking services from Frontier Lithium Inc. . In the past 12 months, Canaccord Genuity or any of its affiliated companies have been lead manager, co-lead manager or comanager of a public offering of securities of Frontier Lithium Inc. or any publicly disclosed offer of securities of Frontier Lithium Inc. or in any related derivatives. Canaccord Genuity or one or more of its affiliated companies intend to seek or expect to receive compensation for Investment Banking services from Frontier Lithium Inc. in the next three months.

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