Lithium Royalty Corp Provides Update on Globally Significant Mineral Resource Announcement at Adina Lithium Project.
Lithium Royalty Corp. (TSX: LIRC) (“LRC”) is pleased to report that Winsome Resources Limited (“Winsome”) announced the maiden resource for its marquee 100% owned Adina lithium project (the “Adina Project”) in Québec, Canada. Winsome announced a maiden inferred mineral resource of 59 million tonnes at 1.12% lithium oxide (Li2O) content, using a 0.6% cut-off grade. This is a substantial discovery and catapults the resource to the fifth largest lithium deposit in Québec by tonnes. The resource is also a significant milestone for Winsome and for the royalty positions that Lithium Royalty Corp. (“LRC”) owns over the Adina Project, which include a 4.0% gross overriding revenue royalty (GOR) and a 2.0% net smelter return (NSR) on certain claims at the Adina Project.
Ernie Ortiz, President and CEO of LRC, said:
Lithium Royalty Corp. was an early supporter of Winsome after its successful spin off from MetalsTech Limited in 2021.
“LRC congratulates Winsome on this momentous achievement which places the Adina Project as a deposit of global significance. The ore body is coarse grained, close to surface, with plenty of potential for additional resource growth. We believe that the Adina Project will be a critical portion of the North American lithium supply chain once in operation,”
- Significant Global Discovery at Adina Project – Winsome announced a 59Mt inferred mineral resource, which ranks as a major lithium resource on a global basis. In Canada, there are only six other ore bodies with a mineral resource in excess of 50Mt. Similarly, in Australia there are only six spodumene deposits in existence with a resource greater than 50Mt, while in Brazil there are currently only two spodumene resources greater than 50Mt. The resource at the Adina Project is based on 27,625 meters of drilling and assays from 93 drillholes. The resource incorporates a strike length of 1.34km that remains open to the east and west along strike up-dip to the north, and at depth. Drilling has intersected mineralisation to a depth of 300m below surface.
- Upside Potential Through Further Mineral Resource Expansion – Winsome is well funded (cash balance of A$60m as of December 11, 2023) as it pursues over 50,000m of infill and step out drilling in 2024 at Adina. Winsome has five drill rigs on site, with over 25,000m of additional assays expected to be received to update the mineral resource in the first half of 2024. Winsome has defined a total strike length of 3.1km of lithium mineralization at the Adina Project, suggesting upside potential from the current resource zone which incorporates a strike length of 1.34km. Winsome plans to include the additional assays into an updated resource in the first half of 2024, which will underpin a planned pre-feasibility study later in 2024 to continue to advance the project towards production.
- Meaningfully Positive Implications for LRC – Winsome’s mineral resource announcement underscores the benefits of LRC’s strategy of targeting assets that are high grade, low cost, with low levels of technical complexity. This announcement exemplifies LRC’s ability to partner and fund lithium companies across a variety of exploration and developmental stages for the benefit of all stakeholders. LRC owns a 4.0% GOR and a 2.0% NSR on certain claims at the Adina Project. Research analysts who cover Winsome estimate that a mineral resource of that scale could support production throughput of 400,000 tonnes per annum of spodumene concentrate (SC6) at steady state. Under this production scenario and at a $1,500/t SC6 price, LRC estimates that revenues could approximate US$25-30 million per year upon the Adina Project reaching full commercial production.
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Lithium Royalty Corp Provides Update on Globally Significant Mineral Resource Announcement at Adina Lithium Project. source
