AFX:CC - Arctic Fox Lithium Corp. Enters into an Option Agreement to Acquire the Delta Lake Lithium Project in the James Bay Region of Quebec
(TheNewswire)
VANCOUVER, BRITISH COLUMBIA – TheNewswire - April 25 , 2023 – Arctic Fox Lithium Corp.(CSE:AFX ) / ( FSE:7N4) (the “Company” ) ispleased to announce that it has entered into a property optionagreement (the “Agreement” ) dated April 19, 2023 (the “EffectiveDate” ) with Noranda Royalties Inc.( “Noranda” ) to acquire twenty (20) mining claims, coveringapproximately 1,056 hectares known as the Delta Lake Lithium project(the “Property” ) in the James Bay region ofQuébec. Under the terms of the Agreement the Company must issue andincur the following in order to exercise the option:
(i) issue 400,000 fully paid common shares of the company within thirty(30) days of the Effective Date;
(ii) issue 500,000 fullypaid common shares of the company within one year following theEffective Date; and
(iii) incur an aggregateof $200,000 in expenditures on the property within two years followingthe Effective Date.
In addition, the Property is subject to a 2% NSR (NetSmelter Returns) royalty in favor of Noranda of which the Company hasan irrevocable right to purchase 1.5% at any time after the option hasbeen exercised for $1,000,000.
Mr. Harry Chew, President, CEO and director, commented:“We continue to grow our lithium focused properties in the James Bayregion of Québec. Noranda has completed a geological datacompilation on the Delta Lake Lithium project which shows 14 outcrops. We feel fortunate to be able to secure this Property as it has allthe potential indicators for a lithium resource.”
About Delta Lake
The 1,056 hectare Delta Lake Lithium project is located 55 km southeast of AllkemLtd. ( ASX/TSX:ALLKEM) (“Allkem”) James BayLithium Project and 20 km north of CriticalElements Lithium Corp. (TSXV: CRE) (“CEL”) Rose Lithium Projectlocated in northern Québec.
The northwestern portion of the Property contains alithium prospective zone in a similar geological environment toAllkem’s project. According to the QuébecMinistère de l’Énergie et des Ressources Naturelles ( “MERN” ) this zone is characterized by theabundance of S-type pegmatitic granite intrusions, a lithology knownfor its Be, Li, Nb, and Ta potential. Beryl (a beryllium silicatemineral) is reported in several outcrops within this zone.
Allkem (55 km northwest) is proposing to develop alithium mine at their James Bay Lithium Project, located adjacent tothe Billy Diamond Highway which provides access to key infrastructurein the region. The 2021 Feasibility Study and Maiden Ore Reserve(“FS”) details a 321,000 tonne per year operation utilizingconventional open pit mining. Allkem’s spodumene expertise from thesuccess of its Mt. Cattlin operations in Western Australia has beenapplied to the design and development of the James Bay Project. The FSsuggests that James Bay Project will be the most competitive operationin the region with low capital and operating costs. Shallow,high-grade mineralization with favourable infrastructure also supportsthe low-cost operation. Allkem has published a mineral resourceestimate of 40.3 Mt @1.40% Li2O ( FSsummary here ) and mineralization isstill open.
CEL’s Rose Lithium-Tantalum mine (20 km south) isanticipated to start production in approximately 21 months. The minewill excavate a total of 26.3M tonnes ore grading an average of 0.87%Li 2 O and 138 ppmTa 2 O 5 after dilution. The mill willprocess 1.61M tonnes of ore per year to produce an annual average of224,686 tonnes of technical and chemical grade spodumene concentratesand 441 tonnes of tantalite concentrate. The ore is contained inseveral parallel and continuous shallow dipping pegmatite dykesoutcropping on surface. The ore zones are open at depth and a futureunderground operation is possible. Over the life of mine, the openpit will excavate a total of 182.4M tonnes of waste rock and 10.9 Mtonnes of overburden. The average strip ratio is 7.3 tonnes of wasteper tonne of ore. ( CELwebsite ).
References to adjacentproperties:
55 km Northwest: Allkem Ltd. JamesBay Lithium:
The technical report entitled “NI43-101 Technical Report Feasibility Study James Bay Lithium ProjectQuebec, Canada” prepared by G Mining Services and dated January 11,2022.
20 km South: Critical ElementsLithium Corp. Rose Lithium-Tantalum:
The technical report entitled“Rose Lithium-Tantalum Project Feasibility Study NI 43-101 TechnicalReport” prepared by WSP Canada Inc. and dated July 26, 2022.
For further information, please contact:
Harry Chew, President, CEO
Phone: (604) 689-2646
On behalf of the Board of Directors,
“Harry Chew”
Harry Chew
President & CEO
Arctic Fox Lithium Corp.
Neither the Canadian SecuritiesExchange nor its Regulation Services Provider (as that term is definedin the policies of the Canadian Securities Exchange) acceptsresponsibility for the adequacy or accuracy of this pressrelease.
* This news release containsinformation about adjacent properties on which Arctic Fox has no rightto explore or mine. Readers are cautioned that mineral deposits onadjacent properties are not indicative of mineral deposits on theCompany’s properties.
The technical information containedwithin this News Release has been reviewed and approved by Gerald G.Carlson, Ph.D., P.Eng., Director of Arctic Fox and Qualified Person asdefined in National Instrument 43-101 Standards of Disclosure forMineral Projects.
Forward-LookingInformation: This releaseincludes certain statements that may be deemed "forward-lookingstatements". All statements in this release, other thanstatements of historical facts, that address any activities and eventsor developments that Arctic Fox Lithium Corp. (" Arctic Fox ") expects to occur, areforward-looking statements. Although Arctic Fox believes theexpectations expressed in such forward-looking statements are based onreasonable assumptions, such statements are not guarantees of futureperformance and actual results or developments may differ materiallyfrom those forward-looking statements. Forward-looking statements inthis press release include, but are not limited to, statementsrelating to: the future expenditures and share issuances relating tothe option agreement described in this press release; potentialbenefits of the acquisition described in this press release; and thefuture potential of and the exploration on the properties described inthis press release. Factors that could cause actual results to differmaterially from those in forward looking statements includeuncertainty with respect to the results of future exploration and theability to conduct any exploration activities on the propertiesdescribed in this press release; failure of the Company to exercisethe option described in this press release; market prices; disruptionsrelating to the COVID-19 pandemic; and continued availability ofcapital and financing and general economic, market or businessconditions. These statements are based on a number of assumptionsincluding, among other things, assumptions regarding general businessand economic conditions; and the Company having sufficient resourcesto be able to conduct anticipated exploration activities. Investorsare cautioned that any such statements are not guarantees of futureperformance and actual results or developments may differ materiallyfrom those projected in the forward-looking statements. Arctic Foxdoes not assume any obligation to update or revise its forward-lookingstatements, whether as a result of new information, future events orotherwise, except as required by applicable law.
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