Winsome Resources (ASX: WR1) is a Perth-based, lithium focused exploration and development company with four project areas in Quebec, Canada.
The Company’s established portfolio of world-class exploration lithium projects, Cancet, Adina and Sirmac-Clappier, are 100% owned by the Company and located in the James Bay region of Quebec, Canada.
The Company also has exclusive rights to explore and subsequently purchase its most recent project, Decelles, which will expand its lithium exploration footprint in the region. Located near Val-dÓr, in the highly sought after Decelles region of Quebec, the option agreement will enable the Company to acquire 669 claims, across 385km² – more than doubling its land holdings in Quebec. It will also allow the Company to explore a new area of the province known for granitic and pegmatitic outcrops. The area is located close to infrastructure and the major mining centres, immediately adjacent to recent lithium discoveries. The new claims are highly complementary to our other projects.
Quebec is a well-established mining jurisdiction, rated among the top globally by the Fraser Institute. It has leading infrastructure and support for mining development projects. In Quebec, 99.8% of the electricity is produced by hydro-power, making it an ideal location for the sustainable mining and production of lithium products.
Winsome Resources’ four projects contain or target shallow, high grade lithium deposits and are strategically located close to established infrastructure and supply chains.
Metallurgical test work indicates that a simple low cost and low impact concentrate production can be achieved at the Cancet Project using Dense Media Separation (DMS). Project development thus far, includes 59 holes for 5,216m of diamond core drilling averaging ~70m drill depth.
Further exploration will target identification of additional tonnage through down dip and along strike extension as well as satellite targets. None of the projects within the Company’s portfolio are geologically constrained, offering further exploration potential.
With more than 99% of the world’s lithium reserves located in Australia, Argentina, Chile and China, our assets offer jurisdictional diversity and opportunity to contribute to the expanding North American battery industry.
Our flagship project, Cancet has had outstanding previous drilling success and is the most advanced lithium asset of the three projects. Cancet comprises of 395 claims for a total area of in excess of 20,000Ha.
It is located 155km East of Radisson, within a favourable geological setting with a well mineralised spodumene bearing pegmatite. Results show a very high recovery at a course crush size is achievable.
Additional targets have also been identified to the west and east, with the potential to significantly increase lithium tonnage.
The Adina lithium project was mapped in 2016, with a successful maiden drilling of 10 holes, covering 1,726m completed in 2018.
A 2km potential strike was indicated by a pegmatite ridge. The initial drilling returned several well mineralised, albeit narrow intervals of mineralisation, warranting additional field prospecting and mapping.
The project offers a co-development opportunity with Cancet.
The Sirmac-Clappier project is made up of 39 claims for a total area of 1,931 Ha, outcropping high-grade lithium hosted in spodumene-bearing pegmatites.
The asset is located less than 3km from an existing high-grade deposit.
Spodumene crystals at this site range in size from 1cm to 30cm, with an average of 10cm. The amount of spodumene found in the pegmatite ranges from 5 to 30% volume.
Extensive mapping of outcropping pegmatite dykes has been undertaken by previous explorers.
The project is in a favourable location close to a major mining town and airport infrastructure, with road and power infrastructure traversing the property.
Winsome has signed an exclusive option agreement to explore and subsequently acquire 669 claims in the Decelles region of Quebec, over a 24-month period.
The claims are across 385km², with the area close to the mining centres of Val-dÓr and Rouyn-Noranda, approximately 600km from Montreal.
The region has seen much recent activity, including high-grade spodumene discoveries by Vision Lithium at their adjacent Cadillac property.
Winsome intends to begin immediate exploration of Decelles, commencing with desktop mapping of granitic outcrops based on the extensive historical and public data available on the area, followed by a winter field visit to inspect visible outcrops and collect samples.
Many of the known outcrops are extensive, occurring over hundreds of metres, and are easily identifiable on Google Earth.
Further fieldwork will be conducted in the Canadian summer.
Current trends show that 7 to 9 times more lithium is needed by 2030 to meet global demand for battery manufacturing.
While it is used to fuel our mobile phones, laptops and other devices, what’s really driving interest in lithium – the world’s least dense metal – is a surging demand for electric vehicles and battery power storage.
High quality spodumene concentrate, suitable for conversion in high Nickle battery applications, is the next frontier of lithium demand as a global deficit in supply looms. Battery production however, typically has a significant Green House Gas (GHG) footprint – and lithium chemicals heavily contribute to this. Therefore, it is vital for any future supply of lithium to be produced in a sustainable manner that minimises its carbon footprint.
The demand for lithium is significant and prices are increasing.
The world lithium market will require exponential growth in the next decade, as a lack of financing is expected to lead to lower supply.
Global leaders in financial service, JPMorgan, believes supply will struggle to keep up [with demand], with a perpetual deficit visible beyond 2030 until more projects are defined by the industry”.
In August 2021, JPMorgan upgraded its long-term price forecasts for lithium spodumene by 31 per cent to $US850 a tonne, forecasting a 19 per cent compound annual growth rate over the next 10 years in demand terms.
Lithium is currently on the US and Canada’s critical mineral list. A lack of financing is expected to lead to lower supply – particularly in the next five years, with the world lithium market requiring exponential growth in the next decade.
Lithium is essential to Canada’s economic security and is required for the country’s transition to a low-carbon economy. The Lithium boom 2 is underway and underpinned by vehicle electrification, with Canada announcing goal of 100% zero emission vehicle sales by 2035.
North America is focusing on internal supply chains and downstream processing to reduce the reliance on current external suppliers.