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Lithium exploration and project development company Critical Resources Limited ASX:CRR (“Critical Resources” or “the Company”) is pleased to advise that it has discovered multiple additional spodumene-bearing pegmatites at the Company’s 100%-owned Mavis Lake Lithium Project (“the Project”) in Ontario, Canada.
Highlights
- 31 new LCT pegmatites discovered to the east of the Mavis Lake Main Zone, including multiple spodumene-bearing pegmatites1.
- Discoveries reinforced with the extension of multiple mapped outcrops – increasing the known outcrop of spodumene-bearing pegmatites up to 250m along strike.
- 83 grab and channel samples collected across the broader Mavis Lake Project Area.
- Muscovite samples gathered for Laser Induced Breakdown Spectroscopy (LIBS) analysis, enhancing knowledge on the fractionation trends.
- Advanced planning completed for the positioning of drill pad locations targeting known spodumene-bearing pegmatites within the Northern Prospects (Gullwing and Tot).
- Planning and permits in place to undertake mechanical stripping and channel sampling of the Tot Pegmatite.
The discoveries, made just weeks into the Company’s 2024 Summer Field Exploration Campaign, highlight the outstanding potential of the Mavis Lake Project to yield further significant lithium discoveries. The exciting results also provide further validation of the JORC compliant Exploration Target announced last week for Mavis Lake (see ASX announcement, 22 May 2024).
Detailed Field Work Delivers Outstanding Initial Results
A field work program comprising prospecting, mapping and sampling began in early May, designed to identify new spodumene-bearing pegmatites, determine fractionation trends at the Northern Prospects and conduct drill pad reconnaissance throughout the Mavis Lake Lithium Project.
A total of 83 samples were collected from pegmatite outcrops across the broader Project Area. A total of 31 new pegmatite discoveries have been made. The discoveries include a ~250m extension of a known spodumene-bearing pegmatite (Pegmatite 20) and 100m extension of the Main Zone spodumene-bearing pegmatite cluster (Pegmatites 7 and 24). Samples have been prepared and will be dispatched to an independent analytical laboratory in the coming weeks, with full results expected in July/August 2024.
Critical Resources Managing Director, Alex Cheeseman said:
“It’s great to see field teams directly following up our Exploration Target and making further significant discoveries at Mavis Lake at the start of the new field season. The field program has already increased our confidence in our ability to deliver on the recently published Exploration Target, paving the way for drill testing a number of high-quality targets. We look forward to continuing our dual-track strategy of targeting resource growth while progressing our project development and permitting workstreams for Mavis Lake.”
Discoveries at Main Zone and East of Main Zone
Field crews spent three weeks prospecting across the Mavis Lake Project Area, resulting in the discovery of 31 new LCT-Type pegmatites. Most of these discoveries are located proximal to and to the east of the Main Zone.
Notable finds include a ~250-metre extension of spodumene-bearing pegmatite 20, a ~100-metre extension of spodumene-bearing pegmatites 7 and 24, and the identification of spodumene- bearing pegmatite 25.
Figure 1 – Plan map of Mavis Lake Main Zone and East of Main Zone showing locations of grab samples and discovery reference areas
Pegmatite 20 Extension
Historical exploration results within the Company’s database, including litho-geochemical assessments of both mafic volcanic host rock and pegmatite, identified a number of areas with elevated lithium values. This data was used to vector field teams onto previously un-mapped pegmatite structures.
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This article includes content from Critical Resources Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
CRR:AU
Strategy Update and Cost Restructure
HIGHLIGHTS
- Strategic focus on scaling Envirostream, the Battery Recycling division, due to the potential of increased recycling volumes and cashflows over the years ahead
- Battery Recycling: Continued safe operations, growing volumes and operating profits, and seek partners to scale operations in line with the expected waste outlook
- Livium is well advanced on the near-term commercialisation pathways of its other technologies:
- Battery Materials: Defined pathway for development of an Australian LFP demonstration plant with funding to be secured directly into VSPC from strategic partners
- Lithium Chemicals: Complete JDA activities with MinRes, including assessment of alternate commercialisation pathways and selection of the preferred lithium product
- Restructuring of the organisation and cost reductions being undertaken with estimated annual ongoing savings of A$1.5m
Comment regarding the strategic update from Livium CEO and Managing Director, Simon Linge
"We have advanced our strategy to inflection points, with the next phases of growth for each division requiring strategic partners to underpin their growth and development. With a focus on strategic growth partners, we have reviewed our resourcing and made the decision to restructure our organisation and reduce costs.
Livium remains committed to delivering returns for shareholders. Whilst organisational changes may impact our ability to react to opportunities, right sizing the organisation assists in resetting the Company's cost base to become sustainable over this critical period."
NEAR TERM PLANS
The following activities have been identified as key to delivering value in the near term:
- Battery Recycling: Continued safe operations, growing end-of-life volumes, and seeking partners to scale operations in line with the expected waste outlook and to expand into related services
- Battery Materials: Secure funding for an Australian LFP demonstration plant from government and private strategic partners, who will invest directly into VSPC
- Lithium Chemicals: Complete JDA activities with MinRes, including assessment of alternate commercialisation pathways and selection of the preferred lithium product
- Corporate: Complete implementation of organisation restructure and other cost saving initiatives.
BATTERY RECYCLING GROWTH OUTLOOK
The Battery Recycling division generates revenue today, is the largest recycler of lithium-ion batteries in the country, draws on our technical expertise to provide value-added services and has strong commercial relationships. Strategic focus is being placed on Battery Recycling, through Envirostream, due to the potential of increased recycling volumes over the coming years.
During CY2024, Envirostream successfully increased volumes of EV' andESS2 with most of the volume being received under exclusive customer arrangements. Over CY2024, Envirostream collected 736k tonnes of large format batteries and it is estimated that there are five times these volumes available today which are increasingly expected to be recycled due to consumer demand and government regulation. In their Battery Market Analysis, B-cycle show how EV and ESS batteries are expected to dominate3.
Figure 1. EOL Battery Projections by Market Segment3
Focusing on only EV / ESS for the balance of the decade demonstrates the near-term opportunity for Envirostream collections growth relative to current performance.
Figure 2. 5-Year EV and ESS EOL Battery Projections3
The near-term outlook for Envirostream is positive, enabling increases of volumes collected and processed, and providing an opportunity to expand our service offerings in line with market requirements.
To accommodate expectations of market growth, the business intends to explore deploying growth capital to improve operating efficiencies and expand capacity. The company has appointed advisors to coordinate discussions around partnership and growth funding options, which includes both strategic partners and other financiers.
Click here for the full ASX Release
This article includes content from Livium Ltd, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
