Recent drilling by Frontier Lithium (TSXV: FL; US-OTC: HLKMF) at its Spark pegmatite lithium zone, part of its 69-sq.-km PAK lithium project in northwestern Ontario, has confirmed the zone continues at depth.
The company drilled 1,340 metres across five holes at the Spark pegmatite in February. All five holes intersected significant spodumene pegmatite.
The company has received assays for one of the holes, so far - it was drilled through three pegmatite zones totalling 215 metres of pegmatite averaging 1.4% lithium oxide.
Highlights from the hole include 80 metres grading 1.58% lithium oxide from 66 metres downhole in the second pegmatite zone, and 100 metres grading 1.25% lithium oxide from 158 metres downhole in the third pegmatite zone.
In April, the company announced plans to build a demonstration concentrator plant at PAK to demonstrate the project's economic viability. The proposed plant would produce 15,000 tonnes of lithium concentrate per year from surface samples at PAK. The company plans to begin building the plant in the next 12-20 months, once it obtains permits and financing.
The company tabled a prefeasibility study for PAK in 2018, that assigned the project a $301 million after-tax net present value at an 8% discount rate, and a 38.3% after-tax internal rate of return. The project would produce 1.14 million tonnes of technical grade concentrate at 7.2% lithium oxide and 115,500 tonnes of chemical grade concentrate at 6.6% lithium oxide over a 16-year mine life.
Frontier Lithium shares are trading at 39 ? with a 52-week range of 30 ? to 61 ?. The company has a $59-million market capitalization.