Full size / Uncovering meter-long spodumene crystals, rich in lithium, at the Corvette Property.
Today, 92 Resources Corp. made a landmark announcement of having successfully signed a potentially game-changing transaction with one of Canada’s most respected mining companies, Osisko Mining Inc. (TSX: OSK; market capitalization: $433 million CAD).
By combining the Corvette Property from 92 Resources with the adjoining FCl Property from Osisko, an extensively large-scale prospective lithium hard-rock trend can now be consolidated in the renowned James Bay Region. 92 Resources can now earn the right to control more than 15 km of possible strike length for lithium-bearing pegmatites in a mining friendly jurisdiction.
So far, 92 Resources has defined 3 km of strike length with the identification of 4 lithium-bearing pegmatites outcropping at surface, named CV1, CV2, CV3 and CV4. Having now 5 times as much possible strike length offers much greater chances to find many more pegmatites along this trend.
CV1 was sampled by 92 Resources in 2017 and returned excellent assays, showing significant grades. Thereafter, exploration resulted in the discovery of 2 new lithium-bearing pegmatites, CV3 and CV4.
According to today’s news, assays from 2018 channel sampling are pending and will be reported shortly. In case positive results can be announced, the company would be propelled into the enviable position of being in a position to control a potentially large lithium district with drill-ready targets.
What makes this all the more attractive is the favorable location of being just 10 km south of the all-season Trans-Taiga Road and powerline infrastructure corridor.
Adrian Lamoureux, President and CEO of 92 Resources, explained the significance of today’s announcement and the great opportunity for investors and shareholders:
“We are very excited to arrive at this agreement with Osisko for the FCI Property. We recognized early-on with the discovery of the CV1 and CV2 pegmatites, that it would be beneficial to consolidate the entire prospective trend. Today, I am very pleased to announce that we now have the ability to explore several kilometers of the prospective CV Pegmatite Horizon as one project. The Company is well-positioned to build upon the significant discoveries made to date and to advance the Corvette-FCI Project with the most upside possible for our shareholders.”
With channel sampling assays pending and expected shortly, it is not difficult to see the vast upside potential that 92 Resources now aims to materialize in the near and long term, especially when considering that a drill program may start fairly quickly.
After several months of a heavy correction in share price with little newsflow, the timing now appears ripe for this $4 million CAD market cap company to start creating excitement with a highly increased newsflow based on its intended exploration programs to unlock the vast potential that the combined Corvette-FCl Property offers.
Putting itself into position to build such an important joint venture with a strong and well-known partner like Osisko Mining is a major accomplishment for 92 Resources going forward with the goal of establishing a new world-class lithium district comprising numerous lithium-rich pegmatites at or near surface in an established mining region.
Due to the numerous pegmatites, exceptional strike length, widths and grades of lithium and tantalum thus far observed at the Corvette Property alone, I fully believe that, together with the newly acquired FCl Property, this rare combination of crucial factors allow for the identification of very large tonnages of spodumene-bearing pegmatites, similar to other advanced projects within central Québec as Nemaska’s Whabouchi Project, Galaxy’s James Bay Project and Critical Elements’ Rose Project.
Full size / High-grade lithium pegmatite at surface on the Corvette Property.
Full size / Large spodumene crystals indicate high-grade lithium mineralization on the Corvette Property.
According to today’s news release:
“In addition to the strong lithium potential, the FCI Property also includes the Lac Bruno Gold Showing, defined as a gold and sulphide-bearing amphibolite boulder with an assay of 38.1 g/t Au. The showing was discovered by Virginia Mines Inc. and highlights a boulder field in the area with a source yet to be located. Additional work was recommended up-ice of the discovery, within the Corvette-FCI Property, and has yet to be completed.
The FCI Property also includes the Séricite Showing where a grab sample from a sulphide-bearing sericite schist returned 0.3 g/t Au, 150 g/t Ag, 1.89% Cu, 11.15% Pb, and 1.45% Zn. Although not a focus for the Company, the base and precious metal potential of the properties is evident and additional ground work is warranted.
Terms of Agreement
Under the terms of the Agreement, the Company may earn a 75% interest in twenty-eight (28) claims comprising Osisko’s FCI Property by satisfying the following conditions, subject to TSX Venture Exchange approval:
• Issuance of 1,000,000 shares upon closing date of the Agreement
• Incurring $250,0000 in work exploration expenditures and issuing of 1,000,000 shares on or before the first anniversary date of closing
• Incurring $800,0000 in work exploration expenditures on or before the second anniversary date of closing, upon which the Company would vest a 25% interest
• Incurring $1,200,000 in work exploration expenditures on or before the third anniversary date of closing, upon which the Company would vest an additional 25% interest, for a total of 50% undivided interest in the FCI Property
Osisko will act as Operator of the FCI Property for the term of the 50% earn-in, with a Steering Committee of equal representation formed to provide advice and direction to the Operator. Upon completion of the 50% earn-in (third anniversary of TSX-V approval (or closing), a Joint Venture Corporation will be formed with the Company retaining an Option to acquire a further 25% interest, for a total of 75% undivided interest, through funding of the next $2,000,000 in exploration expenditures. The Company may become Operator upon notice to Osisko that it intends to incur the $2,000,000 in work expenditures for a final undivided interest of 75%. Osisko’s remaining 25% interest may be further reduced through dilution if they elect to not fund their portion of subsequent exploration/development. If ownership falls below 10%, Osisko will have the right to convert this remaining interest into a 1% Net Smelter Royalty (NSR), of which, the Company retains the right to buy for $5,000,000 (cash or shares), and thereby, would obtain a 100% undivided interest in the FCI Property.”
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Shares Issued & Outstanding: 74,442,456
Canadian Symbol (TSX.V): NTY
Current Price: $0.055 CAD (08/31/2018)
Market Capitalization: $4 Million CAD
German Symbol / WKN (Tradegate): R9G2 / A11575
Current Price: €0.038 EUR (08/31/2018)
Market Capitalization: €3 Million EUR
Report #9 “Booming Frac Sand Markets Golden for 92 Resources“
Report #8 “High Lithium Grades and Astounding Size Potential Sampling Suggests“
Report #7 “High-Grade Lithium and Tantalum confirmed by Channel Sampling“
Report #6 “Crews mobilized for next phase of exploration on the Hidden Lake Lithium Property in NWT“
Report #5 “92 Resources snags hard-rock lithium property in Quebec“
Report #4 “Why 92 Resources looks ready for the next upswing“
Report #3 “Extremely high-grade lithium assays from surface“
Report #2 “Untapping Canada‘s Hidden Lithium Treasuries“
Report #1 “92 Resources on the case for Hard Rock Lithium“
Disclaimer: This report contains forward-looking information or forward-looking statements (collectively "forward-looking information") within the meaning of applicable securities laws. Forward-looking information is typically identified by words such as: "believe", "expect", "anticipate", "intend", "estimate", "potentially" and similar expressions, or are those, which, by their nature, refer to future events. Rockstone Research, 92 Resources Corp. and Zimtu Capital Corp. caution investors that any forward-looking information provided herein is not a guarantee of future results or performance, and that actual results may differ materially from those in forward-looking information as a result of various factors. The reader is referred to the 92 Resources Corp.´s public filings for a more complete discussion of such risk factors and their potential effects which may be accessed through the 92 Resources Corp.´s profile on SEDAR at www.sedar.com. Please read the full disclaimer within the full research report as a PDF (here) as fundamental risks and conflicts of interest exist. The author, Stephan Bogner, holds a long position in 92 Resources Corp. and is being paid a monthly retainer from Zimtu Capital Corp., which company also holds a long position in 92 Resources Corp. Note that neither 92 Resources Corp. nor Zimtu Capital Corp. have reviewed all of the content prior to publication and may not agree with statememts made herein.
Disclosure: I am/we are long RGDCF.