Lightning Minerals Ltd (ASX:L1M) has finalised a binding agreement for its James Bay lithium projects in Quebec, Canada, setting the stage for aggressive exploration starting next month.
L1M CEO Alex Biggs sat down with Proactive’s Andrew Scott today to confirm the identification of 164 discrete targets, with seven categorised as high-priority.
Biggs emphasised the "fantastic opportunity" in the burgeoning lithium market.
Successful due diligence
Biggs noted the successful completion of due diligence and the opportunity this presents.
“We've signed the binding agreement now, so we're moving towards completion of the deal in the next couple of weeks,” Biggs told Proactive.
“We like what we see, and we liked what we saw before we did the due diligence. There's a fantastic opportunity in a red-hot region for lithium right now and the early stage works we've done including the multispectral survey have identified 164 discrete targets across both projects.”
Previous work has formed the basis for L1M to start exploration, which will be in October.
Biggs said it was important to do the on-ground reconnaissance work, check the sites and do the mapping and rock chip sampling before the snow in November.
High priority
There are seven high-priority target areas.
“That's a first pass,” Biggs said.
“I think that when you get in on the ground, you need to be able to rank those targets and know where the guys are going to go. It's not just walking around endlessly. These are big tenements, so it’s critical for us to explore efficiently and effectively.”
Biggs said it helped to have an understanding of the region and its geology. The company liked the projects and the agreement gives it optionality.
“We are still critical minerals focused. We still have a lithium focus, but now we are also in Canada. It's a great place to do business and that region is booming and emerging.
Red hot region
The region, often touted as a hub for lithium exploration, is populated by large and small companies and is attracting a lot of attention.
“Having worked in Canada previously, I know what a good place it is to do business. There are a lot of companies and a lot of good projects, but that to me is a good is a good thing. It tells you that the area is prospective.
"Look at Patriot Metals, look at Winsome Resources. Some of the majors like Rio Tinto (ASX:RIO) are making investments in some of these projects.
“A lot of the early-stage exploration has been successful with a lot of smaller companies both listed here on the ASX and over in Canada. So, it's a good race to be in and I think, principally, it comes down to one thing – the quality of your assets.
“For us at Lightning Minerals, we've always tried to identify good projects, good assets. We test them quickly and we get on the ground and we're aggressive.
"I've said it before, I'm not here just to rely on market sentiment, which at the moment is fairly average. We've got $3.8 million in the bank, so it's a good time for us to double down.”
Biggs states firmly that WA remains a focus as well but is pleased with the greater optionality James Bay brings.