Arctic Fox starts exploration of its lithium projects in James Bay, Quebec
Canadian lithium explorer Arctic Fox Lithium Corp (CSE: AFX; FSE: O5K) is taking advantage of the short window of opportunity before winter sets in to field explore its extensive portfolio of prospective lithium projects in the James Bay region of Canada. As with other companies in the region, including Q2 Metals (TSXV: QWTO) or Ophir Gold (TSXV: OPHR), work had long been delayed by ongoing wildfires. As of yesterday, though, specialists from Strategy Exploration Advisors of Quebec have begun field work.
The geological team plans to take soil samples and map the projects in detail for 28 days. In their search for potential lithium caesium tantalum (“LCT”) pegmatites on the projects, the geologists are using a new LiDAR survey as well as extensive data material from Noranda Royalties Inc. and Resources Potentials Pty Ltd. On the Kana Lake project alone (see Figure1), up to 30 pegmatite trends are known to be visible on surface so far.
Figure 1: All of Arctic Fox’s projects are located in the heart of James Bay. Kana Lake (5,976 hectares) is effectively halfway between Patriot Battery Metals to the east and Q2 Metals to the west. The Pontax Project (1.803 hectares) is located just 12 kilometers south of Allkem’s production-ready James Bay Lithium Project. The recently updated feasibility study for the project suggests that the project will be the most competitive operation in the region with the lowest capital and operating costs. Allkem has released a mineral resource estimate of 40.3 Mt @1.40% Li2O; mineralization is still open.
Harry Chew, President and CEO of the Company commented, “I am very pleased that the bans have been lifted due to the devastating wildfires in the area and we are now able to take advantage of the short window of opportunity to deploy ground teams on our projects this year. I look forward to reviewing the fieldwork results and confirming the presence of potential LCT pegmatites on our properties.”
Bottom line: the James Bay region of Quebec is undoubtedly the place to be when it comes to discovering new lithium hard rock projects. The logic here is the same as with real estate. It’s all about location, location, location. Judged by this criterion, Arctic Fox has secured some properties in prime locations with high potential. It is all the more striking that Arctic Fox has so far not been able to come close to matching the valuations of its competitors. Q2 Metals is currently at a remarkable CAD 66 million for a portfolio of comparable size. However, drilling is already planned there for this fall. Q2 Metals’ neighbour, Ophir Gold, has a valuation of CAD 25 million. Its projects are at a similar stage of development to those of Arctic Fox. Arctic Fox’s stock market value is less than a fifth, namely around CAD 4 million. So there should be plenty of catch-up potential for AFX shareholders if the ongoing field work delivers good results.
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