ASX announcement
19 December 2016
Crescent Lake Lithium Project Update
Argonaut Resources NL (ASX: ARE) (Argonaut or the Company) is pleased to provide the following update on progress at the Crescent Lake lithium project in Ontario, Canada.
Argonaut is targeting hard-rock lithium deposits at Crescent Lake with a view to defining a lithium reserve for mining. The demand for lithium has been particularly strong in the past 12 months mainly due to increased production of lithium batteries for electric vehicles.
Hard-rock lithium deposits generally involve the mineral spodumene which is hosted within thick, coarse-grained veins called pegmatites. This is the case at Crescent Lake.
Highlights
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A program of detailed mapping identified 39 possible pegmatite occurrences. Of these occurrences:
¬ three are positively identified as spodumene bearing; and
¬ 24 have a coarse-grained texture diagnostic of pegmatites.
-
Argonaut and Canadian Orebodies Inc concluded an extension and variation to the option agreement for the acquisition of the Crescent Lake claims.
-
Argonaut now has until 28 February 2017 to complete its assessment.
Argonaut Resources NL ABN 97 008 084 848
Registered Office
Suite 4, Level 9
341 George Street
Sydney, NSW, 2000, Australia T +61 2 9299 9690
F +61 2 9299 9629
E [email protected]
Adelaide Office
Level 1
63 Waymouth Street Adelaide, SA, 5000, Australia T +61 8 8231 0381
F +61 8 8231 6092
E [email protected]
Crescent Lake
Mapping Program
Crescent Lake is located 250km NNE of Thunder Bay in Ontario, Canada (Figure 3).
In November, Argonaut completed a detailed mapping program across areas previously identified as prospective for pegmatite occurrences. The mapping program involved 50 or 100m spaced traverses which were systematically walked by geologists over the target areas shown in Figure 1.
The survey team identified 39 possible pegmatites. The newly mapped occurrences were predominantly located in the areas of known occurrences. Of the 39 occurrences:
-
three are positively identified as spodumene bearing;
-
24 have a coarse-grained texture diagnostic of pegmatites;
-
four are not in-situ;
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sizes ranged from:
¬ 20m outcrop of unknown thickness; to
¬ 10cm thick vein.
-
34 occurrences are located on optioned claims and five occurrences are on claims held 100% by Argonaut's subsidiary, Sunrise Canada Inc.
The most promising occurrence mapped is exposed over 20m. This occurrence is located in the Falcon Lake area (see Figure 1: Target Area 1) and is a newly discovered pegmatite. This pegmatite may contain spodumene and may have a significant strike length and thickness.
Samples collected during the program have been submitted for assay.
410,000m E 415,000m E 420,000m E 425,000m E
Falcon Lake West Falcon Lake Far West
Falcon Lake Discovery
5,590,000m N
Tebish
Dempster East
Target Area 2
TargetArea 1 Falcon Lake East
Dempster L28
5,585,000m N
Crescent Lake 15
0 2
kilometres
Target Area 3
Granitoids Metasediments Metavolcanics Diabase Unmapped area Water bodies/lakes
Recorded Lithium Pegmatites Tracks/trails
Geological boundary
Crescent Lake Project boundary
Figure 1 Exploration target zones at Crescent Lake.
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Amendment to Option Agreement
On 4 March 2016, Argonaut announced it had entered into an option agreement with Canadian Orebodies Inc, a TSX listed company, to acquire claims within the Crescent Lake pegmatite swarm.
The option agreement required Argonaut to complete its assessment of the project by 30 November 2016 at which time Argonaut could elect to purchase 100% of the claims for CAD200,000.
A variation and extension to the option agreement has now been executed which provided for the following amended terms:
-
Canadian Orebodies granted Argonaut an extension to the assessment period under the option agreement from 30 November 2016 to 28 February 2017.
-
In exchange for the grant of this extension, Argonaut:
¬ made a cash payment to Canadian Orebodies of CAD50,000;
¬ issued AUD70,000 worth of ordinary shares, calculated on the 2 week volume weighted average price, to Canadian Orebodies; and
¬ may make a final purchase payment of CAD150,000 on or before 28 February 2017, at the conclusion of the assessment.
2016 Drilling Program
In July, Argonaut completed a six-hole program of diamond core drilling at the Falcon Lake West deposit. The program targeted two pegmatite units, one of which outcrops boldly.
Highlights from analysis of the 2016 drilling program include:
-
24.4m at 1.48% Li2O from 10.9m; including
9.0m at 1.95% Li2O from 20.4m in drill hole FLDD006.
-
11m at 1.05% Li2O from 40.2m; including
6m at 1.26% Li2O from 43.8m in drill hole FLDD002.
-
21.7m at 1.09% Li2O from 48.0m; including
-
m at 1.31% Li2O from 49.8m in drill hole FLDD001.
This program confirmed that grades and thicknesses in the Falcon Lake area are potentially economic.
Next Steps
Argonaut will assess assay results from samples taken during the detailed mapping program and on the basis of these results will conclude its assessment of the project by 28 February 2017.
Background
Argonaut now has rights to two Canadian projects and one South Australian lithium exploration target.
NORTHERN TERRITORY
QUEENSLAND
WESTERN AUSTRALIA
SOUTH AUSTRALIA
Lake Blanche
CANADA
Greenbush Lake
ONTARIO
Crescent Lake
NEW SOUTH WALES
VICTORIA
TASMANIA
UNITED STATES of AMERICA
Figure 2 Argonaut lithium project locations.
Argonaut Resources NL | ASX ANNOUNCEMENT 3
Crescent Lake Project, Canada
(Argonaut acquiring 100%)
On 4 March 2016, Argonaut released details of the acquisition of the Falcon Lake and Zigzag blocks within the Crescent Lake Lithium Project area in Ontario, Canada (Figure 4).
Argonaut later announced that it had pegged additional claims in the area between Falcon Lake and Zigzag (Figure 4). These 100% held claims cover prospective, underexplored areas.
Crescent Lake Lithium Project highlights include:
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Adjacent 23m and 10m thick pegmatites at Falcon Lake West deposit.
-
Three to four stacked spodumene bearing pegmatites over 670m at the Tebish occurrence.
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The deposits are hard-rock pegmatite deposits containing the mineral spodumene.
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The areas surrounding these known deposits are undergoing initial systematic exploration.
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There is excellent potential to define deposit extensions and additional deposits.
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The deposits are well located close to the North American rail network and a major port.
High grade metamorphic complex Metavolcanic dominant
Granitic dominant Metasedimentary dominant Proterozoic and Phanerozoic cover International border
Provincial boundary Coast/lake
Major city
Geological subprovince boundary Superior Province geological boundary Lithium mine/resource
Lithium occurence
Hudson Bay
Labrador Trough
Thompson Belt
MANITOBA
ONTARIO
Trans Hudson
Sachigo
Pakeagama
CANADA
Greenbush Lake Project
James Bay
James Bay
Opinaca
Rose
Whabouchi
Lake
Berens
East Pashkokogan
Uchi ER
Crescent Lake Project
Seymour Lake
Moblan
Tanco BR
WR
Quetico Abitibi
Grenville Province
Separation
Rapids
Wawa
Lake Nipigon
Wabigoon
Georgia Lake
Thunder Bay
Lake Superior
Lacorne/Quebec Lithium
QUEBEC ONTARIO
Subprovince names ER English River BR Bird River
WR Winnipeg River
Southern Province
Lake Michigan
Toronto
0 200
kilometres
UNITED STATES OF AMERICA
Canada 01
Figure 3 Geology of the Superior Province, Canada, showing Greenbush Lake, Crescent Lake and regional lithium occurrences.
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