Lithium ignites exploration rush North

Potentially rich deposits of lithium in the terrain near Yellowknife, the capital of Northwest Territories, has spurred a small stampede of mining companies to Canada's north this summer as worldwide demand for the critical mineral accelerates.

At least seven companies have reported exploration programs underway this field season on lithium projects near Yellowknife.

Lithium is an important mineral for green energy technologies, and net-zero emissions will require greater reliance on both new and recycled sources of lithium for batteries.

This mineral and its compounds enable clean energy and transportation through rechargeable batteries for electric vehicles and electronic products and key ingredients in low melting point glasses and lubricants.

The global energy storage market is projected to reach more than 2,500 gigawatts by 2050, according to a 2020 survey by Wood Mackenzie. Lithium-ion batteries are expected to be the dominant technology in this market, given their high energy density, long cycle life, and decreasing costs, resulting in substantial growth in lithium consumption.

By 2050, the cumulative worldwide demand for lithium could reach more than 60 million metric tons, which is more than 10 times the current annual production.

Australia is the world's largest lithium producer, accounting for nearly half of global production in 2021. Bolivia, Chile and Argentina (the "lithium triangle") have the largest estimated resources, with nearly 50 million metric tons of lithium between the three countries.

Canada does not currently produce lithium but has large hard rock spodumene deposits and brine-based lithium resources. The country also is a substantial importer of lithium for use in various manufacturing processes.

The recent rush to explore for lithium in northern Canada has been spurred by higher prices. Though volatile due to intermittent surpluses in supply during the past decade, lithium carbonate spot prices have soared from less than US$5,000 per metric ton at year's end 2020 to US$27,400 per metric ton nearly a year later.

During this period, the Canadian government designated lithium as one of about three dozen minerals critical to the country's security.

Seeking opportunities

Longtime Northwest Territories diamond explorer, North Arrow Minerals Ltd., reported progress in mid-July in evaluating spodumene pegmatites at its DeStaffany, LDG and MacKay Lithium projects in the prospective terrain to the east of the territory's capital city.

Spodumene, also called triphane, is a lithium aluminum silicate mineral ordinarily found in lithium-bearing pegmatites, or igneous rocks composed of quartz, feldspar, and mica, with a similar silicic composition to granite.

The MacKay pegmatites were identified and staked by North Arrow in an area where, in the 1940s, the Geological Survey of Canada noted tantalite mineralization within tourmaline-muscovite pegmatites.

"The discovery of spodumene pegmatites at MacKay Lake further advances North Arrow's lithium exploration strategy, taking advantage of our northern exploration experience to identify and acquire hard rock lithium properties in the NWT and Nunavut," said Ken Armstrong, president and CEO of North Arrow. "These new pegmatites are located just southeast of the explorer's LDG property, where it is currently evaluating similar spodumene pegmatites identified and mapped in the 1940s and 1950s."

North Arrow said the property has large numbers of pegmatites associated with multiple fertile granite intrusions of Slave Craton. Several known lithium and tantalum occurrences are situated on the property, and significant lithium deposits are located nearby.

The junior plans additional mapping and sampling of the MacKay spodumene pegmatites, intended to get an indication of their size potential as part of its ongoing LDG program.

At its DeStaffany Lithium property located near Great Slave Lake about 115 kilometers (71 miles) east of Yellowknife, North Arrow is also exploring for lithium this summer with a combination of core drilling and surface sampling.

By mid-July, North Arrow had confirmed significant spodumene mineralization in four pegmatites -- Moose 1, Moose 2, Moose 3, and Moose 4

Ground investigation of the new Moose 3 and Moose 4 pegmatites has confirmed similar mineralogy and zoning to that of Moose 1 and Moose 2, including large spodumene crystals (>30 centimeters) identified in several surface bedrock exposures.

The confirmation of significant spodumene mineralization at the Moose 3 pegmatite, located about 1,000 meters to the northwest of Moose 1, suggests it is a strong candidate for inclusion in the explorer's August drill program, Armstrong added.

North Arrow is also pursuing lithium deposits in Nunavut at the Bathurst Inlet pegmatite field and on Baffin Island.

Following up at Muskox

Another junior, Gama Explorations Inc., is exploring the Muskox Lithium Pegmatite Project in the Yellowknife Pegmatite Province of Northwest Territories. The company currently has the right to acquire 100% interest in the Muskox project.

Preliminary results of exploration this summer include greater continuity observed along strike of the CM-1 pegmatite and the confirmation of two additional pegmatites adjacent to CM-1, according to Gama CEO Mick Carew.

"The first phase of our exploration program was designed to assess the continuity of the CM 1 pegmatite and to map the surrounding area in greater detail. The identification of two additional pegmatites is an exciting development," he said. "With the CM-1 mapping and sampling program now complete, we await the completion of a LIDAR and orthophoto survey over the whole Muskox project area.

Data from the lidar-orthophoto survey will help Gama identify any additional spodumene-bearing pegmatites covered or partially covered by overburden.

History of lithium exploration

Another explorer, Li-FT Power (Ltd.), holds leases covering 9,600 square kilometers (3,706 square miles) in the Yellowknife Pegmatite Province, an area believed to host numerous lithium resources. The explorer reported the start of a 45,000-meter drill program in early June at its Yellowknife Lithium Project located to the east of the capital.

"The Yellowknife region has a proud history of lithium exploration, dating back to the 1950s. However, the district has been relatively overlooked in recent times until Li-FT Power (Ltd.) secured its potentially world-class Yellowknife Lithium Project in late 2022," said Adam Ritchie, managing director of another contender, Australia-based Loyal Lithium Ltd.

Loyal Lithium, formerly a gold exploration company, switched its focus to lithium recently and in April, acquired controlling interest in the Hidden Lake Lithium Project about 45 kilometers (about 28 miles) east of Yellowknife. Patriot Battery Metals Ltd. will retain 40% of five contiguous claims (1,660 hectares, or 4,102 acres) in the joint venture.

"The exploration work conducted to-date has been very encouraging with all the (project's) spodumene-rich dykes remaining open along strike and at depth. Additionally, the metallurgical pilot plant performance to date is exceptional and is a direct product of the consistency and purity of the Hidden Lake ore," said Ritchie. "I have no doubt that Hidden Lake will provide desired feedstock to many potential downstream partners."

Loyal Lithium is also exploring for lithium in Nevada and Quebec.

ION Energy Ltd. reported signing a definitive agreement to acquire the nearby Bliss Lake lithium pegmatite project in an all-equity, milestone-driven transaction, which allows the seller to reach a 5% ownership interest in the company.

The Bliss Lake lithium project encompasses 5,798 hectares (14,327 acres) and is located 13 to 15 kilometers (eight to nine miles) away from lithium properties held by Li-FT Power Ltd.

City limits exploration

From Gold Terra Resource Corp., Midas Minerals Ltd., can earn up to 80% interest in the critical mineral rights (including lithium and associated pegmatite minerals and rare earth deposits) of 718 square kilometers (277 square miles) of the Yellowknife Lithium Project located just outside Yellowknife.

This summer, Australia-based Midas began mapping the project and sampling pegmatite swarms.

In late July, Midas reported initial work, including very wide-spaced reconnaissance pegmatite mapping and sampling over several hundred square kilometers with the aim of understanding the variability of pegmatite fractionation in this large prospective pegmatite field. Assay results from an initial 173 rock chip samples include highest values of 2.11%, 1.95%, 1.57%, 1.41%, and 1.32% lithium oxide. A further 226 samples have been submitted for analysis, and results are pending.

"We have quickly been able to get a good handle on areas most likely to contain spodumene-bearing pegmatites. Very wide-spaced reconnaissance mapping and sampling have already located at least a dozen pegmatites containing high lithium and or tantalum mineralization. With the results of the 226 samples currently pending analysis, we should be able select areas for more systematic mapping and sampling in August and commence drilling thereafter," said Midas Managing Director Mark Calderwood.

Midas is also exploring three lithium projects in Western Australia and the Greenbush project in Ontario.