Li-FT Power (TSXV: LIFT; US-OTC: LIFFF) has posted a first resource for its Yellowknife project in the Northwest Territories, acquired only two years ago, that ranks it as the third largest hard-rock initial lithium resource in Canada.
The project, located just east of Yellowknife, hosts 50.4 million inferred tonnes grading 1% lithium oxide (Li2O) for 506,000 tonnes of Li2O, or 1.25 million tonnes of lithium carbonate equivalent, according to the resource, released on Monday.
“With (the resource) based only on the initial drilling program, the Yellowknife lithium project already ranks among the top 10 largest spodumene projects in the Americas,” Francis MacDonald, Li-FT CEO said in a release. “The majority of the deposits included in the (resource) have not yet been constrained by the drilling completed to-date and have excellent potential to significantly grow through further drill programs.”
Li-FT has quickly advanced the project, which comprises seven targets located along the all-season Ingraham Trail highway. However, the resource comes as lithium prices have dropped 88% over the past two years. Battery-grade lithium hydroxide has fallen to US$9,950 per tonne on Tuesday from US$22,275 a year ago and around US$85,000 a tonne in late 2022, according to The Wall St. Journal.
‘30M additional tonnes’
SCP Equity Research analyst Brandon Gaspar said in a note on Monday that Li-FT’s 50.4 million-tonne estimate compares well with Winsome Resources’ (ASX: WR1) initial 66-million tonne resource for Adina. Another 20 to 30 million tonnes could be added to the resource when drilling resumes, for a long-term target of 80 million tonnes, he added.
Li-FT’s preliminary economic assessment for the project, scheduled for the second quarter of 2025, is likely to emphasize strip ratio, stockpiling dense media circuit recovery and scheduling at a higher cut-off grade, Gaspar said.
Top 3 initial resources
With its 506,000 contained tonnes of Li2O, the Yellowknife lithium project is behind the two largest initial lithium resources in the country by contained metal, Patriot Battery Metals’ (TSX: PMET; ASX: PMT; US-OTC: PMETF) Shaakichiuwaanaan project and Winsome’s Adina, both in Quebec.
Shaakichiuwaanaan hosts 80.1 million indicated tonnes grading 1.44 Li2O for 1.1 million contained tonnes Li2O, and 62.4 million inferred tonnes at 1.31 Li2O for 820,000 inferred tonnes Li2O.
Adina hosts 60.5 million indicated tonnes grading 1.14 Li2O and 15.9 million inferred tonnes at 1.17% Li2O, for 900,000 tonnes Li2O.
Li-FT’s resource is based on 49,548 metres of drilling done between June 2023 and last April on two sets of targets located 25 km and 50 km east of Yellowknife.
Company shares were down 0.7% to $2.69 apiece on Tuesday afternoon in Toronto, valuing the company at $106 million. On Monday, shares spiked 11.4% to $3.04 before closing at $2.71. Li-FT shares traded in a 52-week range of $1.86 and $7.15.
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