FRONTIER LITHIUM REPORTS FIRST QUARTER RESULTS
SUDBURY, ON, Aug. 28, 2023 /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, 2023. 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 on SEDAR+.
The company continues to advance its plans to develop a lithium salts refining plant in North America's Great Lakes region. Frontier is advancing the definitive feasibility study ("DFS"), assessing the viability of constructing and operating a fully integrated lithium mining and chemicals company to deliver battery-grade lithium carbonate and lithium hydroxide for the burgeoning lithium-ion battery market in North America.
On June 30, 2023, the company had cash and cash equivalents of $22.34 million, 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, 2023, and recent developments:
EXPLORATION
- PHASE XIII DRILL PROGRAM
Phase XIII drill program commenced in February 2023 with four additional holes drilled at Spark testing the western extension of the deposit before delineating the Bolt pegmatite. Since February, the Company has completed 11,364m in 46 drill holes, including geomechanical and hydrogeological test work at the PAK deposit, delineating Bolt pegmatite as well as condemnation drilling in areas of proposed infrastructure.
- REGIONAL MAPPING PROGRAM
Since May 2023, follow-up to the 2022 reconnaissance program has been underway including more detailed prospecting/mapping and channel sampling. In 2022, a new spodumene-bearing pegmatite zone, 10 by 15m, was discovered approximately 1 km west-northwest of the Spark pegmatite with grab samples averaging 3.1% Li2O. Prospecting and mapping in the Pennock pegmatite area discovered additional pegmatite dykes up to 30m in length and 3 to 5 m in width, grab samples averaging 1.7% Li2O.
RESULTS OF PRE-FEASIBILITY STUDY
In May 2023, the Company released the results of PFS for a proposed mine-to lithium chemical/hydromet plant facility. The PFS was published on July 14th, 2023. The results of the PFS include a post-tax NPV at an 8 percent discount rate of US$1.74 billion with a post-tax IRR of 24.1 percent. The PFS confirms that the 100% owned Project could be the continent's largest and lowest-cost producer of lithium hydroxide able to supply the rapidly growing electric vehicle industry in North America.
CORPORATE LEADERSHIP TEAM CHANGES
In June 2023, the Company appointed Mr. Gregory Da Re as Vice President of Corporate Development. Mr. Da Re brings a deep understanding of electric vehicle battery supply chains and two decades of experience as an accomplished investment executive.
In August 2023, the Company announced the appointment of Mr. Erick Underwood as its new Chief Financial Officer. Mr. Underwood brings with him over 25 years of extensive experience in the finance and project development sectors within the mining industry.
OTHER MATTERS
ANNUAL GENERAL MEETING
Annual General Meeting of the shareholders of Frontier Lithium Inc. will be held on Wednesday, September 13, 2023, at 2:00 p.m. (Toronto time) virtually via the Zoom Meeting Platform. Shareholders can visit this link to register for the event and this link to submit their questions.
Frontier Lithium (TSX-V: FL) (FRA: HL2) (OTCQX: LITOF) is a preproduction business with an objective to become an integrated strategic 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 sole project maintains the largest land position and resource in a premium lithium mineral district located in Ontario's Great Lakes region.
The PAK lithium project contains North America's highest-grade lithium resource and is the second largest in North America 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+.
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 news release. 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 (NPV) , and statements that address future production, 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, Investors should review the Company's registered filings available at SEDAR+.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.
SOURCE Frontier Lithium Inc.
View original content to download multimedia: http://www.newswire.ca/en/releases/archive/August2023/28/c7537.html