Lithium Two Project

Overview:

The company’s 100% owned Lithium Two Project is a historical known spodumene (a lithium–rich mineral) bearing pegmatite deposit in southeast Manitoba that was discovered and explored in the late 1940’s. Two main pegmatite bodies exist on the property, the Eagle and the FD No. 5 Pegmatite. In 2016 the company carried out a small ground proofing program to confirm the historic lithium assays. Field surface sampling yielded assays for the Eagle Pegmatite up to 2.44% Li2O and assays up to 3.04% Li2O for the FD No. 5 Pegmatite. In 1947, drilling of the Eagle Pegmatite estimated that there was 544,460 tonnes (600,000 tons) of Spodumene with an average content of 1.4% Li2O to a depth of 61 metres (200 feet). This is a historic estimation and is Non NI 43-101 compliant. It was also reported at that time, that the Eagle Pegmatite continued to depth.

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Location:

The Lithium Two Project is located approximately 145 kilometres (90 miles) northeast of Winnipeg, Manitoba, Canada and 22 kilometres north of the Tanco Mine Site. The project has good access with an all-season gravel road crossing through the project area. The project is one of five lithium projects that the company has in the region. It is located in the northern portion of the Cat Lake – Winnipeg River Pegmatite Field. The southeast area of Manitoba has several active mining camps.

Project Location Map - Click to enlarge

Exploration History:

The area has an exploration history that dates back to 1943 when the original claim was staked. The area was staked and held by several companies.

Eleven trenches, averaging 5 x 0.6 x 1.2 m (15 x 2 x 4 ft) were completed in 1946. The highest assay value reported at the time was 1.86% Li2O over 1.5 m (5 ft) in Trench #2. Ledoux & Company, Inc. in 1946 re-analyzed sections past drill core and reported assays of 0.27 - 2.41% Li2O.

The property was assigned to Mining Developments Ltd. in 1947. The Northern Miner in 1947 reported that The Lithium Corporation of America, Inc. had acquired a substantial interest in Mining Developments Ltd. and that there was "approximately 25 tons (23 tonnes) of crude ore waiting at the property for freeze-up for shipment to Lithium Corporation's wholly-owned subsidiary, Metalloy Corporation at Minneapolis, Minnesota, for treatment". It was also stated that drilling confirmed 544 460 tonnes (600 000 tons) of spodumene with an average content of 1.4% Li2O was indicated to a depth of 61 m (200 ft) and that structural conditions suggested additional tonnages at depth.

In 1948 Mining Developments Ltd. changed its name to Northern Chemicals Ltd. and the latter attempted to arrange financing to bring the property into production. After financing could not be arranged; the claim was assigned to Lithium Corporation of America, Inc. in 1954.

The mining lease was cancelled around 1976, and the area opened for staking. It was staked for Tantalum Mining Corporation of Canada Limited (Tanco) in 1970 and again in 1982. The company carried out ground exploration with the focus on tantalum.

It was staked in 2002 as part of a land package held by Exploratus Limited and later purchased by Maskwa Nickel Chrome Mines (Mustang Minerals). Mustang Minerals did not perform any work on the pegmatites. The company optioned the claim containing the Eagle and FD No 5 Pegmatite from Mustang Minerals in 2016 and carried out a ground proofing Phase One Exploration Program to confirm the surface lithium values of the pegmatites.

Geology:

The project is geologically situated in the Cat Lake portion of the Cat Lake – Winnipeg River Pegmatite Field. The Winnipeg River Pegmatite Field hosts the World-Class Tanco Pegmatite which has been mined since 1969 at the Tanco Mine Site, in various capacities and for various commodities. This pegmatite field is hosted in the Archean age Bird River Greenstone Belt and into the surrounding granites.

The Eagle Pegmatite is a Spodumene-Albite subtype of a Lithium Cesium Tantalum (LCT) family of pegmatites. LCT Pegmatites are mined around the world for their lithium, tantalum, rubidium and beryllium. The pegmatite is exposed at surface as a series of lenticular spodumene-bearing dykes, over a distance of about 823 metres with widths up to 30 meters. The Eagle Pegmatite has a general strike of 077° and a near vertical dip. The F.D. No. 5 Pegmatite is surface exposed over an area of 27 and 15 metres and is poorly exposed away from the main showing. The unit strikes at 80° with a near vertical dip to the north. The FD No. 5 Pegmatite appears to have not been previously drill tested.

There are several other lithium bearing pegmatites in close proximity to the Lithium Two Project.

Geology of the Lithium Two Project in SE Manitoba - Click to enlarge

Surface sampling over the two pegmatites during the 2016 field season yielded assays for the Eagle Pegmatite up to 2.44% Li2O and assays up to 3.04% Li2O for the FD No. 5 Pegmatite.

Assay Results of the 2016 Phase One Exploration Program — Lithium Two Project - Click to enlarge

The lithium content over both sampled pegmatites is extremely positive. As well, tantalum, cesium and rubidium contents are enriched as would be expected from a LCT Type Pegmatite. LCT Type Pegmatites are the deposit types sought for in Lithium Exploration. The Tanco Pegmatite is a LCT Type Pegmatite.

Future Activities:

The Lithium Two Project is a drill ready target. The company plans to drill test the project in 2017 and is actively seeking joint venture or option partners in its Lithium Projects.

To date, the Company has approximately 6,318 hectares (15,612 acres) of mineral claims with lithium mineral potential in the Cat Lake-Winnipeg River Pegmatite Field of southeast Manitoba. The company is the largest mineral claim holder in the Pegmatite Field. As part of Company’s Prospector Generator Model, negotiations are currently ongoing with interested 3rd parties for possible Option/Joint Ventures and other Exploration Initiatives.

Green Spodumene Blades in Matrix of Quartz and Albite from the FD No 5 Pegmatite - Click to enlarge

White Spodumene in a Matrix of Quartz and Albite from the Eagle Pegmatite - Click to enlarge

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Quick Facts

  • 100% owned
  • Two main pegmatite bodies exist on the property: Eagle and the FD No. 5 Pegmatite
  • Field surface sampling yielded assays for the Eagle Pegmatite up to 2.44% Li2O
  • Assays up to 3.04% Li2O for the FD No. 5 Pegmatite
  • Located 22 kilometres north of the Tanco Mine Site
  • Lithium content over both sampled pegmatites is extremely positive
  • Project is drill-ready
  • Plans to drill-test in 2017
  • Approximately 6,318 hectares (15,612 acres) of mineral claims with lithium mineral potential
  • Negotiations currently ongoing with 3rd parties for possible Option/Joint Ventures and other Exploration Initiatives.