Frontier Lithium initiates Fully Integrated North American Lithium Project Preliminary Economic Assessment (PEA) to Produce Lithium Hydroxide from the PAK Lithium Project
SUDBURY, ON, Sept. 9, 2020 /CNW/ - Frontier Lithium Inc. (TSX.V: FL) (the "Company" or "Frontier") is pleased to announce that it has commenced a Preliminary Economic Assessment Study ("PEA") of vertically integrated operations to produce lithium hydroxide chemicals from the PAK Lithium Project (the "Project"). This study will demonstrate the Project's full potential by leveraging its high quality, low impurity resource to produce premium spodumene concentrates and to introduce Frontier as a future fully-integrated, lithium hydroxide supplier to the emerging electric vehicle and lithium battery market. Frontier has engaged WSP Canada Inc. (TSX:WSP) to work closely with the Company and its technology partner XPS Expert Process Solutions ("XPS"), a Glencore company, in leading the PEA. WSP is one of the largest engineering firms in Canada and has a mining division maintaining independent consulting geologists and engineers. Frontier is targeting completion of the PEA in this calendar year 2020.
Trevor Walker, President and CEO commented, "The recent increase in the Project resource size and strong metallurgical results coupled with encouraging progress on current bench-scale lithium chemicals test work should provide the basis for a positive PEA outcome. The PEA will include a vertically integrated spodumene mining, milling and downstream lithium hydroxide production facility. The decision to pursue the vertically integrated model is being driven by strong lithium demand outlook, growing need for higher quality battery raw materials and very encouraging hydrometallurgical progress with ongoing evaluation test work. The PEA (under NI 43-101 standards) will build on the foundation set by our rare ability to produce high quality Technical grade spodumene concentrate and will highlight the potential of a vertically integrated operation in the Great Lakes region of Northern Ontario."
Other Matters
Frontier also announces that certain insiders and consultants (the "Optionees") of the Company have agreed to cancel an aggregate of 8,050,000 stock options held by optionees. Upon cancellation, the Company will have 2,816,666 stock options outstanding under the Plan, of which there are 500,000 stock options exercisable at a price of $0.24 per common share expiring on April 28, 2021 and 2,316,666 stock options exercisable at a price of $0.30 per common share expiring on November 11, 2024.
About Frontier Lithium
Frontier Lithium is a Sudbury based, publicly listed, junior mining company with the largest land position in an emerging premium lithium mineral district located in the Great Lakes region of northern Ontario. The company maintains 100% interest in the PAK Lithium Project which contains one of North America's highest-grade, large tonnage hard-rock lithium resources in the form of a rare low-iron spodumene. The Project has significant upside exploration potential. Frontier is a pre-production business targeting the manufacturing of battery quality lithium hydroxide in the Great Lakes Region to support electric vehicle and battery supply chains in North America and globally. Frontier maintains a tight share structure with management ownership approximately 30% of the Company.
About PAK Lithium Project
The PAK Lithium Project encompasses 26,774 hectares at the south end of Ontario's Electric Avenue, which is the largest land package hosting lithium bearing pegmatites in Ontario. The Project covers 65km of Avenue length and remains largely unexplored; however, since 2013 the company has delineated two premium spodumene bearing lithium deposits located 2.3 km from each other at the southwestern end of the project. Recently, Frontier confirmed the presence of spodumene with the Pennock Lake pegmatite occurrence a further 30km along Frontier's PAK Lithium Project. Frontier's premier Great Lakes location is advantaged by favorable geology, proven metallurgy with access to intermodal hubs, infrastructure, power, and mining and downstream lithium processing expertise.
The PAK deposit has a mineral reserve in the proven and probable categories of 5.77 MT averaging 2.06% Li2O. The deposit hosts a rare technical/ceramic grade spodumene with low inherent iron (below 0.1% Fe2O3). The Spark Deposit, winner of the "2019 Discovery of the year award" has a mineral resource estimate of 3.2 MT averaging 1.59% Li2O (indicated) and 12.2 MT averaging 1.36% Li2O (inferred), as per the NI 43-101 Technical Report, "PAK prefeasibility study, Spark resource estimation" by WSP Canada Inc. and Nordmin Engineering Ltd., updated on March 23, 2020.
Forward-looking statements
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. This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. 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 or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, 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, Investors should review the Company's registered filings available at sedar.com
SOURCE Frontier Lithium Inc.
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