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ABE acquires the Sirmac lithium property

 

Published by
Global Mining Review,

ABE Resources Inc. (ABE) announced the closing of its acquisition (the transaction) of a 100% undivided interest in the Sirmac lithium property from Nemaska Lithium Inc., pursuant to the terms and conditions of the asset purchase agreement between the parties, previously announced on 14 December 2017 and 5 January 2018. The Sirmac lithium property consists of 24 map designated mining claims having a total area of approximately 1100 ha., located approximately 180 km northwest of Chibougamau, in the province of Québec.

 

In connection with the transaction, an updated independent technical report on the Sirmac lithium property, dated 19 January 2018, was prepared for ABE in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (NI 43-101) by John Langton, M.Sc., P.Geo of MRB & Associates, a qualified person under NI 43-101.

Nemaska Lithium completed 73 NQ-sized drill holes on the Sirmac lithium property in 2012 totalling 3379.2 m, and conducted extensive mechanical stripping and channel sampling of the #5 dyke. Results of this work were used by SGS Canada Inc. (SGS) of Blainville, Québec to calculate a NI 43-101, within-pit, Mineral Resource Estimate (MRE) in 2014, which is included as a historical estimate in the technical report.

While the company considers the historical estimate to be relevant to investors, as it may indicate the presence of mineralisation, a qualified person has not done sufficient work for ABE to classify the historical estimate as current ‘mineral resources’ or ‘mineral reserves’ (as defined in NI 43-101), and the company is not treating this historical estimate as current mineral resources or mineral reserves.

Phase I of the recommended work programme set out in the technical report involves a resampling of historic drill core intervals for QA/QC purposes and twinning of a number of historic holes as part of a program to validate and potentially increase the historical estimate. All available data should be integrated into a 3D model of the Sirmac lithium property using geoscience analyst or similar software in order to better understand and advance the geological/structural model of the intrusion(s) comprising the #5 dyke complex. A detailed geological mapping, prospecting and sampling programme should be initiated to investigate the areas of the Sirmac lithium property that have recently been clear-cut by wood-harvesting operations. A high resolution magnetic survey is also recommended for the Sirmac lithium property. Being extremely low in iron, LCT pegmatites do not have a strong magnetic geophysical signature. However, the host metasedimentary and basaltic rocks are magnetic and strike at a high angle to the pegmatite dykes, which should allow for resolution using magnetic survey methods.

Conditional on the success of the Phase I programme, the author of the technical report recommends a Phase II exploration programme consisting of a comprehensive diamond drilling programme targeting the most prospective areas interpreted from the results of the Phase I programme.

"We are very excited to start working and to begin to realise the vast potential of this property," commented Yves Rougerie, President and CEO of ABE. "Our next step is to conduct a Mag survey, which will help us identify the numerous other pegmatites on the property. Certainly, #5 dyke is a large pegmatite and a very obvious target to begin work on. Since Nemaska Lithium first went on the property, there has been a lot of logging activity, which has provided us with better access to the property and enabled us to see other pegmatites which were previously not visible and should be explored. Better sight lines combined with a Mag survey should generate numerous additional targets for exploration. Our goal is to build a large world class deposit on this property."

 

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Lithium mining news Canadian mining news