Discovery Lithium To Acquire Private Lithium Explorer Midex Resources.
Discovery Lithium Inc. (CSE: DCLI) (OTCQB: DCLIF) (FRA: Q3Q0) (WKN: A3EFKA) (the “Company,” or “Discovery Lithium”), a Canadian exploration company focused on advancing domestic energy freedom through regional lithium discovery, is pleased to announce that the Company has signed a letter of intent (“LOI”) to acquire a 100% interest in Midex Resources, a Canadian lithium exploration company.
Highlights
- LOI to acquire 100% ownership of Midex Resources.
- Discovery Lithium to acquire 43,000-hectare land position in known li-bearing pegmatite fields with resources within northwestern Ontario.
- Crescent Lake Project is on-strike with ASX-listed Green Technology Metals flagship Seymour project which host resources of 9.9 Mt grading 1.04% Li2 [1],[2]
- Berens Project is situated along the same geological strike as TSX-listed Frontier Lithium Inc’s Pak project. Frontier Lithium has recently signed a joint venture agreement with Mitsubishi Corporation to advance the first fully integrated lithium operation in Ontario, Canada.
- Berens Project encompasses the highly prospective Bearhead Lake Fault, which serves as a controlling structure for two lithium deposits and several additional spodumene-bearing pegmatites. 3
- The Bearhead Lake Fault is the controlling structure for two lithium deposits (PAK and Spark) and several additional spodumene-bearing pegmatites, with the PAK deposit boasting probable reserves of 22Mt grading 1.55% Li2 1,[3]
Mr. Michael Gheyle, Company President and CEO, said:
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This acquisition will bolster the project portfolio with an outstanding set of spodumene lithium projects in one of the best mining jurisdictions in Canada.
“Both the Berens and Crescent Lake targets are on strike and adjacent to known lithium deposits and in highly prospective ground. A combination of historical drilling and early-stage exploration indicates the presence of spodumene pegmatites at surface and we are excited to get to work. Discovery Lithium remains well positioned to build value for its shareholders on its lithium projects in Ontario and Quebec.”
The LOI is non-binding, and completion of the Transaction is subject to the receipt of all necessary approvals and the satisfaction of a number of conditions, including the entering into of a definitive agreement and other customary conditions for a transaction of this nature.
Crescent Lake:
The Crescent Lake property is located in the Seymour-Crescent-Falcon lithium belt, an area which is currently being developed by GT1 and successfully explored by Battery Age Minerals. The Seymour-Crescent-Falcon lithium trend is currently known to host thirteen spodumene-bearing pegmatites along a 26 km structural trend.[4],[5]
The Crescent Lake property covers an underexplored 8 km section of this Seymour-Crescent-Falcon trend, which is proximal to the English River-East Wabigoon Subprovince boundary, a deep-seated structure along a granite/volcanic contact. A limited channel sampling and diamond drilling program (totaling 849 metres) in 2016 tested four spodumene pegmatite bodies at the northeast end of this trend, generally at depths less than 35 metres vertical.4,5
The highest recorded drilling intercept to date, was a weighted average intercept of 1.17% Li2O along a 49 metre core length drilled down dip on the L61W areas East Pegmatite.[6],5 Surface channels from the 2016 program returned up to 3.14% Li2O over 1.2 metres in the Chappais Pegmatite.4,5 Previous personnel reported spodumene crystals in the Chappais Pegmatite measuring up to 50 cm in length.4,5 A 4.0 metre channel section of the L61W areas East Pegmatite assayed 1.64% Li2O, 0.078% Ta2O5, 2270 ppm rubidium, 418 ppm caesium, and 256 ppm beryllium.4,5
Berens:
The Berens Project is the largest land position in the Favourable Lake Greenstone belt, located 200 km north of Red Lake, Ontario. Renowned for its diverse mineral endowment, the belt is rapidly emerging as a district that will play an important role in supplying critical minerals to enable the electrification revolution and Canada’s ranking as a dominant lithium producer globally.
The Berens Project consists of 25,430 hectares of royalty free mineral tenure, along strike of the Frontier Lithium PAK and Spark lithium deposits. The Berens North Project and Frontier Lithium’s deposits are located along the same lithium-bearing geological and structural zone, that is controlled by a deep crustal fault known as the Bearhead Lake Fault system. On March 4th, 2024, Mitsubishi Corporation and Frontier established a joint venture partnership for the PAK lithium project mine and planned lithium chemicals conversion facility.
In August of 2022, Midex undertook a reconnaissance prospecting program, covering 200 sq km that confirmed the presence of lithium-bearing pegmatites.[7],5 These new discoveries extend the trend of confirmed lithium-bearing pegmatites an additional 36 kilometres to the northwest, with over half of this trend extension on the Berens North Project.8,5
Allison Lake, Case Lake, and Onion Lake Projects:
The remainder of the Midex portfolio is rounded out by three excellent grassroots opportunities in highly prospective regions of Ontario. These projects were acquired through staking and as such are not subject to any royalties.
Team:
Midex is led by CEO David Jamieson, who has established a team of experts to build Midex into a leading private exploration company. Discovery Lithium and Midex expect additional synergies to be created through the proposed Transaction by strengthening both the team and property portfolio of Discovery Lithium. Following the completion of the Transaction, key members of Midex are expected to join the Company adding further technical expertise and first-hand knowledge of these geological ecosystems in Ontario.
Qualified Person
The technical content of this news release has been reviewed and approved by Mike Kilbourne, P. Geo., who is an independent Qualified Person (QP) as defined in National Instrument 43-101, Standards of Disclosure for Mineral Projects. The QP and the Company has not completed sufficient work to verify the historic information on the properties belonging to Midex Resources, particularly regarding historical exploration, neighbouring companies, and government geological work. The information is conceptual in nature and provides an indication of the exploration potential of the properties, but may not be representative of expected mineralization on the properties. It is uncertain if further exploration will result in the delineation of a mineral resource.
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Discovery Lithium To Acquire Private Lithium Explorer Midex Resources. source
