SLAM Exploration Ltd. (“SLAM” or the “Company”) is pleased to announce it has entered into an option agreement with Dustin Nanos and WhiteRock Corp. (“WhiteRock”) signed November 7, 2023 (the “Option Agreement”) whereby SLAM can acquire 100% of the Peninsula Critical Mineral lithium project neighboring the Rose lithium-tantalum project operated by Critical Elements Lithium Corp. located on the territory of Eeyou Istchee in the proven James Bay lithium camp in Québec. All sections of the project are located on the traditional lands of the Cree Nation of Eastmain.
Project Highlights:
- Proven Lithium District: The Peninsula project comprises 302 claim units covering 4,700 hectares in 4 claim groups located 10 to 30 kilometres northeast of the 60 million tonne Rose lithium-tantalum deposit and mine project operated by Critical Elements Lithium Corp. (“CRE”). CRE filed a positive feasibility study October 11,2023 for a potential mine at the Rose Deposit* based on the following reserves and resources:
- Rose Deposit:
CRE Website: 60 M tonne Rose Lithium Deposit as of August 1st, 2023
Probable Reserves*: 26.3 M tonnes 0.87% Li2O and 138 ppm Ta2O5
Indicated Resources*: 30.561 M tonnes 0.93% Li2O and 118 ppm Ta2O5
Inferred Resources*: 2.384 M tonnes 0.78 % Li2O and 129 ppm Ta2O5
*Reference: Rose Lithium-Tantalum Project, Feasibility Study Ni 43-101, Technical Report, Critical Elements Lithium Corporation 1.3 Project No.: Ca0005226.0808, Effective Date: August 29, 2023, Issue Date: October 11, 2023 WSP Canada Inc.; pages 27-28 Mineral Resources and Reserves, SEDAR File 000024726.
- Lithium Potential of the Area:
The Peninsula lithium project located northeast of the Rose lithium tantalum project as shown on Image 1 and is underlain by volcano-sedimentary and intrusive rock formations similar to those occurring on the Rose project. These formations could host pegmatites similar to the northeast-trending lithium pegmatite bodies that outcrop on the Rose project. Several potential areas of outcrop that are prospective for pegmatites can be identified from Google Earth and satellite views.
CRE recently announced several new lithium discoveries and identified 4 new spodumene-bearing pegmatite outcrops in their “New Discovery Area” on the Rose project. According to CRE, “the apparent strike length along the outcrops exceeds 400 metres to date, the results from the initial 10 selected samples have been received. All samples are lithium-bearing and 50% of them report values over 3% Li2O with some results as high as… 5.62% Li2O…The reader is cautioned that grab samples are selective by nature and may not represent average grades”.
- Infrastructure: The Project is 50 km north-west of Nemaska’s Whabouchi lithium mine, 20 km south of Hydro Québec’s Eastmain 1 major hydroelectric dam and 80 km south of Goldcorp’s Éléonore gold mine. The project is 45 kilometers north of the Cree village of Nemaska located approximately 300 km north-west of Chibougamau. The four sections of the project are all accessible from the Route du Nord, an all season road from Chibougamau. It can also be reached from Matagami, via Route 109 and Route du Nord. The Nemiscau airport is 50 km from the project.
SLAM President Mike Taylor states: “The lithium potential of this area is well established by the known 60 million tonne lithium tantalum resource on the Rose project to the west and the Whabouchi lithium mine 50 km to the southeast. There is excellent potential for lithium deposits on our Peninsula claims. SLAM wishes to thank Dustin Nanos and WhiteRock for this opportunity and is compiling data in preparation for an exploration program on the Peninsula project.”
The Option Agreement
To acquire interest in the Peninsula lithium project, SLAM must pay WhiteRock a total of $125,000, issue WhiteRock 7,000,000 common shares (“Shares”) and make exploration expenditures in accordance with the following schedule over a period of three (3) years:
Upon SLAM earning 100%, WhiteRock will retain a 1.5% Net Smelter Return (NSR) production royalty. SLAM retains the right to buy back one-third of the royalty equal to 0.5% NSR for a one-time payment of CAD $600,000 at any time.
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Due Date
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Common Share
Payments
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Cash Payment (CAD)
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Exploration
Expenditures
|
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Within 30 days of signing the Option Agreement
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-
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$25,000
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-
|
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On or before April 30, 2024
|
-
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$100,000
|
-
|
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Within 5 days receipt of TSX Venture Exchange (“Exchange”) approval
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2,500,000
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-
|
-
|
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On or before the 1st anniversary date of the Option Agreement
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2,225,000
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-
|
-
|
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December 31, 2024
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-
|
-
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$500,000 in exploration work
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On or before the 2nd anniversary date of the Option Agreement
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2,225,000
|
|
|
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December 31, 2026
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|
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$1,000,000 in exploration work
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|
Total
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7,000,000
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$125,000
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$1,500,000
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The Option Agreement and proposed Share issuances remain subject to approval by the Exchange. All Shares will be subject to a statutory hold period of four months and half the Shares will be subject to a hold period of eight months from issuance. SLAM will pay a finder’s fee of 700,000 Shares and 0.5% NSR (the “Finder’s NSR”) to a qualified arm’s length party. The Finder’s NSR will be granted only upon completion of the 100% earn-in by SLAM. SLAM retains the right to purchase this Finder’s NSR for $1,000,000 at any time.
Source: https://www.slamexploration.com/