Mining News: Northern Nuggets: Athabasca cuts deal for northern lithium projects

Athabasca Nuclear Corp. May 2 said it has entered into a binding letter of intent with North Arrow Minerals Inc. to acquire the Torp Lake and Phoenix lithium properties. The Torp Lake project covers 1,003 hectares (2,478 acres) near tidewater in the north Slave region of Nunavut. The Torp Lake Project hosts the McAvoy lithium-rich pegmatite contained in the mineral spodumene. Past channel sampling of pegmatite at McAvoy has returned six meters grading 4.5 percent lithium dioxide and seven meters grading 3.3 percent Li2O. The channels were located 78 meters apart and cut perpendicular to the north-south strike of the pegmatite. Athabasca reports that high concentrations of spodumene are observable within the McAvoy pegmatite over a 110-meter strike length. Mineralogical analysis, completed by SGS Canada Inc., of a composite sample indicated excellent liberation of spodumene and microprobe analysis confirmed the spodumene is exceptionally pure and clean of major elements, particularly iron and manganese. The Phoenix project, located roughly 70 kilometers (45 miles) southeast of the Diavik Diamond Mine in Northwest Territories, consists of 5,629 hectares (13,910 acres) of claims that host the Big Bird and Curley lithium-rich pegmatites. The Big Bird pegmatite has been mapped over a 1,280-meter strike length with observable outcrop widths ranging from eight meters to greater than 80 meters. Past drilling at Big Bird pegmatite returned 1.24 percent Li2O over 34.3 meters. The Curlew pegmatite has been mapped over a strike length of 400 meters with widths up to 20 meters. Past drilling at Curlew returned 1.72 percent Li2O over 14.87 meters. As consideration for the Torp Lake and Phoenix claims, Athabasca will issue North Arrow 2.5 million common shares as well as 1 million warrants with an exercise price of C20 cents per share for a two-year period.

- Shane Lasley