Li-FT Power (TSXV: LIFT; US-OTC: LIFFF) plans to publish an initial resource by the third quarter next year for its Yellowknife hard rock lithium project in the Northwest Territories, CEO Francis MacDonald says.
By then, based on historical data, modern geological modelling, and current drilling results, MacDonald suggests the company can calculate a resource off its back-of-envelope exploration target of roughly 95 million to 125 million tonnes of material at grades similar to what they’re finding at surface spodumene pegmatite outcrops.
“While aggressive, we believe the target is realistic given the high-grade lithium present at surface and the project’s outcropping exposures,” he tells The Northern Miner in an interview. “I think there’s a resource here. We just have to get out there, drill it off, and see how big this is.”
Since its formation in May 2021, Li-FT has intersected notable mineralization at the road-accessible Yellowknife project, as more and more explorers across Canada ramp up activity in pursuit of critical minerals needed for the green energy transition.
The company has reported encouraging drill assay results, including intervals of 22 meters at 1.35% lithia, or lithium oxide (Li2O), and 22 meters at 0.82% Li2O on Nov. 14. On Nov. 21, it reported even higher grade intercepts at the Shorty pegmatite of 10 metres at 1.75% Li2O, and 14 metres at 1.5% Li2O at Ki.
The results are from a 34,000-meter drilling campaign over the summer, undeterred by challenges such as regional wildfires.
Li-FT has traced 13 spodumene pegmatites, some measuring up to 1,800 metres in length, like the Fi Main deposit, and up to 35 metres in width, such as at Shorty. Over the total strike length of 10 km, the average width is 15 metres.
Drilling shows that the pegmatites have similar widths and grades at depth.
The Yellowknife lithium project is not far from infrastructure to support an operation. Credit: Li-FT Power
Li-FT Power is gearing up for an aggressive exploration program in 2024. MacDonald says the company is planning up to 70,000 meters of drilling from Q2, with an initial resource estimate anticipated around August or September, followed by a preliminary economic assessment.
Drawing a comparison to Sigma Lithium (TSXV: SGML; NASDAQ: SGML), with its $4 billion market capitalization and operational status, MacDonald says the geological features of the Yellowknife project are very similar to those of Sigma’s Grota do Cirilo in Brazil. Both projects cover multiple pegmatite showings within a district-scale area.
MacDonald owns 2.5% of the company and is optimistic that Li-FT’s exploration will mirror Sigma’s successful trajectory, potentially sending the Yellowknife project into a comparable valuation and active status.
However, when MacDonald compared the surface area of Sigma’s pegmatite deposits against Yellowknife’s, he suggested that project’s footprint could be significantly larger, ultimately hinting at a greater resource base.
Strong backing
Li-FT also has other earlier-stage projects in the portfolio. The Cali project, also in the Northwest Territories and close to the Yukon border, entails a spodumene pegmatite district with significant potential, first discovered in the 1960s.
Historical work by Canadian Superior Exploration highlighted a 60-metre-wide spodumene pegmatite extending over 500 meters.
With a new drill permit, Li-FT is ready for further exploration in this region known for high-grade lithium, pending financing and logistical support via nearby transportation routes.
In Quebec’s James Bay region, Li-FT holds a 2,300sq.-km land package for greenfield lithium exploration. The project aims to discover buried lithium pegmatites under glacial sediments, leveraging systematic screening for lithium indicators.
Li-FT has 41.2 million shares outstanding on a fully diluted basis. It enjoys strong financial backing from such sources as Commodity Capital AG, Fourth Sail Capital and 1832 Asset Management, who, among other institutions, own 19%. The company’s founders own 52%.
Including a recent $12.4 million public offering, the company is well-positioned for rapid resource advancement.
“I think it’s pretty easy to see that there’s world-class potential here, especially in the Yellowknife district,” MacDonald said. “We’re well-financed, have that tight share structure, and the plan is to go out and put a couple of big drill programs together and come up with a resource estimate next year.”
At $6.24 apiece, company shares are down 36% over the past 12 months, having touched $5.00 and $16.50. It has a market capitalization of $246 million.
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