Frontier Lithium Reports First Quarter Results
FRONTIER LITHIUM REPORTS FIRST
QUARTER RESULTS
SUDBURY, ON
,
Aug. 23, 2024
/CNW/ - Frontier Lithium Inc. (TSXV: FL) (FRA: HL2) (OTCQX:
LITOF) ("Frontier" or the "Company") has reported financial results for the first quarter ended
June
30, 2024
. The financial statements and the related management's discussion and analysis have been
filed on SEDAR+ and can be viewed under the Company's profile at (
www.sedarplus.ca
) and on the
company's website at
www.frontierlithium.com
The Company continues to advance its PAK Lithium Project (the "Pak Lithium Project" or "Project")
and assess the viability of constructing and operating a fully-integrated lithium mine and chemicals
processing facility to deliver battery-grade lithium carbonate and lithium hydroxide for the burgeoning
lithium-ion battery market in
North America
.
On
June 30, 2024
, the company had cash and cash equivalents of
$30,360,000
, leaving it well
positioned to meet corporate and administrative expenses and to further execute on its planned
business objectives.
Highlights for the Quarter Ended June 30, 2024
Exploration
The Company's completed Phase XIII drill program included four holes at the Spark deposit,
extending this deposit and delineating the Bolt pegmatite. As of
March 2024
, a total of 11,364
meters were drilled across 46 holes by the Company. At the PAK deposit, 2,033 meters of
geomechanical and hydrogeological drilling was completed in preparation for the Company's
proposed definitive feasibility study ("DFS").
Definitive Feasibility Study
On
November 1, 2023
, DRA Americas Inc., an international multi-disciplinary engineering, project
delivery and operations management company, was selected by the Company for assistance and
preparation of the mine and mill portion of the DFS. Environmental baseline studies are ongoing to
support project permitting, and infrastructure works are being completed to continue to support the
DFS in relation to stockpiles, tailing management, the mill, and related facilities.
Mitsubishi Joint Venture Partnership
On April 25, 2024, the company announced the successful closing of tranche 1 of the joint venture
partnership with Mitsubishi Corporation ("Mitsubishi"). This joint venture for the Project marks a
significant milestone in advancing the construction of the first fully integrated lithium mining and
processing operation in
Ontario
, Canada. Through the joint venture partnership, as initially
announced on
March 4, 2024
, Mitsubishi has acquired an initial 7.5% interest in the Project for CAD
$25 million
. This strategic investment underscores the confidence in the size, quality, and strategic
importance of the Project to the North American electric vehicle supply chain. Frontier plans to utilize
the funding from Mitsubishi to progress the Project towards a vertically integrated DFS, which is
expected to be completed in 2025.
Other Matters
ANNUAL GENERAL MEETING
The Annual General Meeting of the shareholders of the Company will be held on
Monday,
September 30, 2024
, at
11:00 a.m.
(
Toronto
time) in-person at 2614 Belisle Drive,
Val Caron,
Ontario
. A virtual meeting link will be set up for the meeting for viewing and listening purposes only,
no voting will be conducted or carried out via the virtual meeting platform. Shareholders can visit
this link
to register for the event and to submit questions.
Due Diligence
All scientific and technical information in this release has been reviewed and approved by
Garth
Drever
, P.Geo., the qualified person ("QP") under the definitions established by National Instrument
43-101 -
Standards of Disclosure for Mineral Projects
. Under Frontier's QA/QC procedures, all
drilling was completed by Chenier Drilling Ltd. of
Val Caron, Ontario
using NQ drill rods for the
geotechnical drill holes; thin walled BTW drill rods (4.2 cm core diameter) for all other holes and a
Reflex ACT III oriented core system. Using the Reflex system, the drill core was oriented and
marked as it was retrieved at the drill. A Reflex GYRO Sprint-IQ survey instrument was used every
50 metre downhole and again at the end of each hole when rods were pulled out. A Reflex North
Finder Azimuth Pointing System (APS) unit was utilized to complete accurate positioning and
orientation of the drill collar upon setup. The core was boxed and delivered to the Frontier core
shack where it was examined, geologically logged, and marked for sampling. The core was
photographed prior to sampling. Using a rock saw, the marked sample intervals were halved with
one-half bagged for analysis. Sample blanks along with lithium certified reference material was
routinely inserted into the sample stream in accordance with industry recommended practices. Field
duplicate samples were also taken in accordance with industry recommended practices. The
samples were placed in poly sample bags and transported to AGAT Laboratories Ltd. (AGAT) in
Thunder Bay, Ontario
for sample preparation and to
Calgary, Alberta
for processing and quantitative
multi-element analysis. AGAT is an ISO accredited laboratory. The core is stored on site at the
Company's Knox exploration camp.
About Frontier Lithium
Frontier Lithium Inc. is a pre-production business with an objective to become a strategic and
integrated domestic supplier of spodumene concentrates for industrial users as well as battery-
grade lithium hydroxide and other chemicals to the growing electric vehicle and energy storage
markets in
North America
. The Company's PAK Lithium Project maintains the largest land position
and resource in a premium lithium mineral district located in
Ontario's
Great Lakes region.
About the PAK Lithium Project
The PAK Lithium Project contains
North America's
highest-grade lithium reserves and is the largest
in
Ontario
by size. The project encompasses close to 27,000 hectares and remains largely
unexplored; however, since 2013, the company has delineated two premium spodumene-bearing
lithium deposits (PAK and Spark), located 2.3 kilometres apart. Exploration is continuing on the
project through two other spodumene-bearing discoveries: the Bolt pegmatite (located between the
PAK and Spark deposits), as well as the Pennock pegmatite (25 kilometres northwest of PAK
deposit within the project claims). A 2023 Pre-Feasibility Study "National Instrument 43-101
Technical Report PFS PAK Lithium Project" by BBA E&C Inc., delivered a 24-year project life,
delivering a post-tax NPV(8%) of
US$1.74 billion
and IRR of 24.1% as per the press release
disseminated on
May 31, 2023
, and was filed on SEDAR+ (
www.sedarplus.ca
)
Forward-looking Statements
This news release includes certain statements that may be deemed "forward-looking statements".
All statements in this release, other than statements of historical fact constitute forward-looking
statements. Forward looking statements contained in this news release include, but are not limited
to, statements with respect to: estimated mineral resources, estimated capital costs to construct
mine facilities, estimated operating costs, the duration of payback periods, estimated amounts of
future production, estimated cash flows, net present value, the DFS and statements that address
future production, resource and reserve potential, exploration drilling, exploitation activities and
events or developments that the Company expects.
Although the Company believes the expectations expressed in such forward-looking statements are
based on reasonable assumptions, such statements are not guarantees of future performance and
actual results may differ materially from those expressed in the forward-looking statements.
Forward-looking statements involve inherent risks and uncertainties. Risk factors that could cause
actual results to differ materially from those in forward looking statements include: market prices for
commodities, increases in capital or operating costs, construction risks, availability of infrastructure
including roads, regulatory and permitting risks, exploitation and exploration successes, continued
availability of capital and financing, financing costs, and general economic, market or business
conditions. Investors are cautioned that any such statements are not guarantees of future
performance and those actual results or developments may differ materially from those projected in
the forward-looking statements. For more information on the Company, please review the
Company's public filings available at
www.sedarplus.ca
.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is
defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy
or accuracy of this release.
SOURCE
Frontier Lithium Inc.
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%SEDAR: 00008434E
For further information:
Company Contact Information: Bora Ugurgel, Senior Manager, Investor
Relations, 2736 Belisle Drive Val Caron, Ontario, P3N 1B3 Canada, T. +001 705.897.7622, F. +001
705.897.7618
CO: Frontier Lithium Inc.
CNW 17:00e 23-AUG-24