Frontier Lithium Inc.
PAK Lithium Project
About the Project
The PAK Lithium Project encompasses 26,774 hectares located 175 kilometers north of Red Lake in northwestern Ontario. First discovered by Ontario Government geologists in the late 1990’s, the property includes the Pakeagama Lake granitic pegmatite which has highly anomalous values of lithium, cesium, tantalum, and rubidium. The PAK deposit is a lithium-cesium-tantalum (LCT) type pegmatite containing high-purity, technical-grade spodumene (below 0.1% iron oxide). The deposit is exposed at surface and has a known strike length of 500 meters with an estimated true width varying from 14 meters to 125 meters with a sub-vertical orientation of the pegmatite. The deposit remains open to depth and along strike to the northwest and southeast.
The deposit has an adequate size and grades at surface amenable to open pit mining to base feasibility work on to potentially construct a mine and milling operation at site.
Exploration work conducted throughout 2013 to 2016 shows the PAK deposit could be a potential near-term supplier of high-purity technical-grade lithium concentrates from the mineral spodumene that is preferred by the ceramic and glass market which consumes approximately one-third of total global lithium production.
Electric Avenue - Ontario’s newest prospective lithium-metal region
Frontier has added 725 claim cells (14,248 ha) to their PAK Lithium project with the discovery of the Spark pegmatite 2.3k northwest of the PAK pegmatite. The recent staking extends the PAK Lithium Project 47km along the “Electric Avenue”, Ontario’s newest prospective lithium-metal region. This structural corridor in northwestern Ontario is a known geological feature separating the Berens River and the Sachigo Sub-provinces of the Archean superior Craton which feature multiple rare metal occurrences (Figure 1).
One other such known occurrence exists 25km up the Electric Avenue from Pakeagama Lake where the historical Pennock Lake spodumene showing has been confirmed by the Company and is an exploration target for future follow-up.
“The Electric Avenue contains the richest lithium resource known in Ontario and has become a premier exploration target in Canada for Frontier. “ - Trevor Walker, President and CEO of the Company.
Pre-Feasibility Study Released
In 2018 Frontier released the Prefeasibility Study that showed spodumene concentrate with grades of 7.2% lithium oxide (Li2O) with a corresponding Li2O recovery of 78.5%. The original test work was performed from a representative 500 kg master composite mineralized sample. The program also included high intensity magnetic removal of iron that resulted in concentrate iron oxide levels of 0.1% Fe2O3. These results confirm the suitability of the material to meet the most rigorous specifications of the lithium market.
These results exceed chemical grade requirements for further upgrading to produce compounds for the lithium-ion battery market – a global market that is anxious to see a new, serious supplier in a favourable jurisdiction come online as a sustainable source for low-iron, high purity lithium.
PFS Open Pit
- Currently designed to be greater than 100m from Pakeagama Lake.
- Maximum vertical depth of 200m.
- Competent host wall allows maximum pit wall slope.1
- 1.5 years of open pit mining
Underground Expansion
- Ramp access from bottom of pit.
- Four levels: Underground stopes 20x20x40-50m high.
- 4.5 years of underground mining.
Updated Mineral Resource Calculation
Steller High Grade Zone at Surface to kickstart the project.
In March 2018, Frontier Lithium published an updated resource estimate on the PAK Lithium Project. The current Canadian National Instrument 43-101 compliant mineral resource estimate shows a Measured and Indicated resource of 7.25 million tonnes of 1.69 percent lithium oxide (Li2O) and an Inferred resource of 1.9 million tonnes of 2.01 percent Li2O
The updated 2018 resource estimate results from the completed Pre-Feasibility Study which included the high-grade Upper Intermediate Zone (UIZ) of the deposit. Results from the 2015 channel sampling conducted on UIZ included up to 28 meters grading 4.41 percent lithium oxide (Li2O). All channels returned consistent grades between 4.25 percent and 4.67 percent lithium oxide over widths no less than 6.2 meters.
Fast Facts
- 5.8 million tonnes of mill feed averaging a combined 2.00% Li2O.
- Mill operates at average tonnage of 1,090 tonnes per day.Total production of 1.14 million tonnes of technical grade concentrate of 7.2% Li2O.
- Total production of 115,500 tonnes of chemical grade concentrate of 6.6% Li2O.
- Resource remains open to depth and along strike to the northwest and southeast.
De-risked Start-up with High-Grade ore material at surface
In August 2017 a leading global ceramic glass manufacturer approved Frontier’s spodumene for the production of high-quality glass as a result of 280 tonnes of ore material shipped (direct-ship ore without gravity or flotation seperation) from the high-grade zone (Upper Intermediate Zone “UIZ”) bulk sampling program. The UIZ is favourably outcropped at surface whereby 657,920 tonnes grading an average 3.59% Li2O is available for a traditional low-cost truck and shovel open pit operation start-up.
Milburn Meekis of Deer Lake showing off some of the highest grade lithium ever drilled in North America. It contains in excess of 50% spodumene and is part of a 5 m zone averaging 4.9% Li2O and was intersected during the latest round of drilling on the PAK Lithium Project.
Deposit outcropped at surface. The PAK deposit is a lithium-cesium-tantalum (LCT) type pegmatite and is amenable to low-cost open pit mining.
Aerial view of PAK Lithium Project located 175 kilometers north of Red Lake in northwestern Ontario.
Staged Strategy for Growth
Frontier Lithium is taking a very systematic, staged approach to advancing the PAK Lithium Project into the global lithium market by assessment of producing lithium products through a two phase approach. This approach is to limit dilution to our shareholders. Frontier believes that mines build chemical plants and not the other way around.
Phase I
Sell to Industrial Use Market (Ceramic Glass)
Begin to supply rare, low-iron premium spodumene concentrate for ceramic glass market. This means selling it immediately for industrial uses by targeting US and European industrial users of Lithium concentrate.
Outlook
Phase I will be an Advanced Exploration program to confirm the Project’s economic viability through the construction and operation of a Demonstration Concentrator Plant. It will have a capacity to produce up to 15,000 tonnes of lithium concentrate (spodumene) per year from a representative surface sample of the PAK deposit. Construction of the plant will commence in 2020 providing related permits and financing are confirmed.
Our Lithium In Demand
Ceramic/glass customers prefer to source technical-grade (low-iron) spodumene concentrate in excess of 7% lithium oxide (Li2O), if available, to avoid inferior lower grade petalite concentrates, or paying much higher prices for battery grade lithium compounds that require capital intensive chemical plants for production.
Phase II
Sell premium low-iron spodumene to chemical plant / Invest in a chemical (hydrometallurgical) plant in Ontario
Possibly selling it to a chemical plant for further upgrading to produce lithium compounds such as carbonate or hydroxide required for lithium batteries.
Outlook
Invest in a chemical plant in Ontario that releases lithium from spodumene concentrates and Ontario becomes a global supplier of compounds for the lithium ion battery market. Scale operations at mine site and build hydrometallurgical (chemical plant) at port of Thunder Bay. The chemical plant is built by the PAK deposit, but will drive future investment and development from other lithium deposits.
Source: https://www.frontierlithium.com/projects.php
