Solstice Gold Corp. (TSX-V:SGC) told investors it has acquired two new lithium projects after establishing a combined 96 square kilometre (km2) strategic land position in the Frazer Lake area in northwest Ontario.
The company noted that the land position is about 10 km from the town of Nipigon, which is located on the Trans-Canada Highway.
The new acquisitions include the Church Lake Project (CLP), a southern staked area of 55 km2 with 261 claims, and an option to acquire the Purdom Project, a further 14 km2 with 14 claims located to the northeast.
As part of Solstice’s 2023 province-wide review of potential lithium areas, CEO Pablo McDonald said the company identified a possible western extension of the Georgia Lake Deposit in the area.
“We had been tracking progress in the area and decided to seize the opportunity to stake once we saw positive results confirm its potential,” McDonald said.
“We are very happy with the preliminary results we’ve seen from our reconnaissance field trip, and we have already mobilized field teams to the area. We will be making use of structural and geochemical data to vector into the areas of highest potential in this area while doing systematic coverage of the properties.”
Church Lake Project
Solstice highlighted that the CLP is located about 5 km south of claims controlled by Pegmatite One Lithium which hosts a new lithium-cesium-tantalum (LCT) discovery. Additionally, it lies at the southern end of a prominent regional north-south fault which is coincident with several greater than 95% lithium lake sediment anomalies.
Recent prospecting at the property led to the discovery of five 12-30-metre wide pegmatites within a 1 km x 0.5 km area, located close to the main north-south structure. Solstice noted that these pegmatites typically contain quartz, albite and potassium feldspar along with books of muscovite and garnet. Trace minerals observed include beryl or fluor-apatite and an unidentified black prismatic mineral that registers 300-800 parts per million (ppm) lithium (Li).
The company said additional work will be required to definitively identify these trace minerals.
Purdom Project
Solstice said the Purdom Project lies partially adjacent to, and east of, Pegmatite One Lithium claims and is well within the area where fertile pegmatites may be expected to be present.
Three greater than 95% lithium lake sediment anomalies lie within the project, and given the similar anomalies in the Pegmatite One Lithium and CLP areas where LCT pegmatites are newly documented, the company said the Purdom Project lake sediment anomalies are positive indications of the potential for pegmatite discoveries.
Further, it said there is no recorded historical exploration activity on the Purdom Project.
It expects to commence prospecting before the end of the summer.
Option agreement
Solstice said it entered into an option agreement with 1544230 Ontario Inc and Gravel Ridge Resources Ltd on August 21, 2023, to purchase the option to acquire their 100% interest in the Purdom Project.
It must pay $21,000 in cash within 10 days of the effective date of the agreement and issue 300,000 common shares following TSX Venture Exchange approval.
To exercise the option, Solstice has to conduct exploration activities on the claims and pay a further $25,000 in cash by the first anniversary of the option agreement; $30,000 by the second anniversary; and $34,000 by the third anniversary.
Solstice also has to spend at least $30,000 on exploration work within the first anniversary.
Following the exercise of the option, the optionors will retain a 1.5% net smelter return (NSR) royalty on the Purdom property. The NSR includes a 0.75% buyback for $900,000.