SUDBURY,
ON, Aug. 23, 2024 /CNW/ - Frontier Lithium
Inc. (TSXV: FL) (FRA: HL2) (OTCQX: LITOF) ("Frontier" or the
"Company") has reported financial results for the first quarter
ended June 30, 2024. The financial
statements and the related management's discussion and analysis
have been filed on SEDAR+ and can be viewed under the Company's
profile at (www.sedarplus.ca) and on the company's website at
www.frontierlithium.com
The Company continues to advance its PAK Lithium Project (the
"Pak Lithium Project" or "Project") and assess the viability of
constructing and operating a fully-integrated lithium mine and
chemicals processing facility to deliver battery-grade lithium
carbonate and lithium hydroxide for the burgeoning lithium-ion
battery market in North
America.
On June 30, 2024, the company had
cash and cash equivalents of $30,360,000, leaving it well positioned to meet
corporate and administrative expenses and to further execute on its
planned business objectives.
Highlights for the Quarter Ended June 30, 2024
Exploration
The Company's completed Phase XIII drill program included four
holes at the Spark deposit, extending this deposit and delineating
the Bolt pegmatite. As of March 2024,
a total of 11,364 meters were drilled across 46 holes by the
Company. At the PAK deposit, 2,033 meters of geomechanical and
hydrogeological drilling was completed in preparation for the
Company's proposed definitive feasibility study ("DFS").
Definitive Feasibility Study
On November 1, 2023, DRA Americas
Inc., an international multi-disciplinary engineering, project
delivery and operations management company, was selected by the
Company for assistance and preparation of the mine and mill portion
of the DFS. Environmental baseline studies are ongoing to
support project permitting, and infrastructure works are being
completed to continue to support the DFS in relation to stockpiles,
tailing management, the mill, and related facilities.
Mitsubishi Joint Venture Partnership
On April 25, 2024, the company announced the successful
closing of tranche 1 of the joint venture partnership with
Mitsubishi Corporation ("Mitsubishi"). This joint venture for the
Project marks a significant milestone in advancing the construction
of the first fully integrated lithium mining and processing
operation in Ontario,
Canada. Through the joint venture partnership, as initially
announced on March 4, 2024,
Mitsubishi has acquired an initial 7.5% interest in the Project for
CAD $25 million. This strategic
investment underscores the confidence in the size, quality, and
strategic importance of the Project to the North American electric
vehicle supply chain. Frontier plans to utilize the funding from
Mitsubishi to progress the Project towards a vertically integrated
DFS, which is expected to be completed in 2025.
Other Matters
ANNUAL GENERAL MEETING
The Annual General Meeting of the shareholders of the Company
will be held on Monday, September 30,
2024, at 11:00 a.m.
(Toronto time) in-person at 2614
Belisle Drive, Val Caron, Ontario.
A virtual meeting link will be set up for the meeting for viewing
and listening purposes only, no voting will be conducted or carried
out via the virtual meeting platform. Shareholders can
visit this link to register for the event and to submit
questions.
Due Diligence
All scientific and technical information in this release has
been reviewed and approved by Garth
Drever, P.Geo., the qualified person ("QP") under the
definitions established by National Instrument 43-101
- Standards of Disclosure for Mineral Projects. Under
Frontier's QA/QC procedures, all drilling was completed by
Chenier Drilling Ltd. of Val Caron,
Ontario using NQ drill rods for the geotechnical drill
holes; thin walled BTW drill rods (4.2 cm core diameter) for all
other holes and a Reflex ACT III oriented core system. Using the
Reflex system, the drill core was oriented and marked as it was
retrieved at the drill. A Reflex GYRO Sprint-IQ survey instrument
was used every 50 metre downhole and again at the end of each
hole when rods were pulled out. A Reflex North Finder Azimuth
Pointing System (APS) unit was utilized to complete accurate
positioning and orientation of the drill collar upon setup. The
core was boxed and delivered to the Frontier core shack where it
was examined, geologically logged, and marked for sampling. The
core was photographed prior to sampling. Using a rock saw, the
marked sample intervals were halved with one-half bagged for
analysis. Sample blanks along with lithium certified reference
material was routinely inserted into the sample stream in
accordance with industry recommended practices. Field duplicate
samples were also taken in accordance with industry recommended
practices. The samples were placed in poly sample bags and
transported to AGAT Laboratories Ltd. (AGAT) in Thunder Bay, Ontario for sample preparation
and to Calgary, Alberta for
processing and quantitative multi-element analysis. AGAT is an ISO
accredited laboratory. The core is stored on site at the Company's
Knox exploration camp.
About Frontier Lithium
Frontier Lithium Inc. is a pre-production business with an
objective to become a strategic and integrated domestic supplier of
spodumene concentrates for industrial users as well as
battery-grade lithium hydroxide and other chemicals to the growing
electric vehicle and energy storage markets in North America. The Company's PAK Lithium
Project maintains the largest land position and resource in a
premium lithium mineral district located in Ontario's Great Lakes region.
About the PAK Lithium Project
The PAK Lithium Project contains North
America's highest-grade lithium reserves and is the largest
in Ontario by size. The project
encompasses close to 27,000 hectares and remains largely
unexplored; however, since 2013, the company has delineated two
premium spodumene-bearing lithium deposits (PAK and Spark), located
2.3 kilometres apart. Exploration is continuing on the project
through two other spodumene-bearing discoveries: the Bolt pegmatite
(located between the PAK and Spark deposits), as well as the
Pennock pegmatite (25 kilometres northwest of PAK deposit within
the project claims). A 2023 Pre-Feasibility Study "National
Instrument 43-101 Technical Report PFS PAK Lithium Project" by BBA
E&C Inc., delivered a 24-year project life, delivering a
post-tax NPV(8%) of US$1.74 billion
and IRR of 24.1% as per the press release disseminated on
May 31, 2023, and was filed on SEDAR+
(www.sedarplus.ca)
Forward-looking Statements
This news release includes certain statements that may be deemed
"forward-looking statements". All statements in this release, other
than statements of historical fact constitute forward-looking
statements. Forward looking statements contained in this news
release include, but are not limited to, statements with respect
to: estimated mineral resources, estimated capital costs to
construct mine facilities, estimated operating costs, the duration
of payback periods, estimated amounts of future production,
estimated cash flows, net present value, the DFS and
statements that address future production, resource and reserve
potential, exploration drilling, exploitation activities and events
or developments that the Company expects.
Although the Company believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions,
such statements are not guarantees of future performance and actual
results may differ materially from those expressed in the
forward-looking statements.
Forward-looking statements involve inherent risks and
uncertainties. Risk factors that could cause actual results to
differ materially from those in forward looking statements include:
market prices for commodities, increases in capital or operating
costs, construction risks, availability of infrastructure including
roads, regulatory and permitting risks, exploitation and
exploration successes, continued availability of capital and
financing, financing costs, and general economic, market or
business conditions. Investors are cautioned that any such
statements are not guarantees of future performance and those
actual results or developments may differ materially from those
projected in the forward-looking statements. For more information
on the Company, please review the Company's public filings
available at www.sedarplus.ca.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Frontier Lithium Inc.
