First Lithium Minerals Corp. (FLM:CNSX) announced positive results from magneto-telluric (MT) geophysical surveys at its 100%-owned OCA lithium project in the Antofagasta region of northern Chile.
The one-dimensional and two-dimensional inversion models were generated from data from 60 sites at the salar de Ascotan, salar de Carcote, and salar de Ollague, the company said.
A salar is a salt-encrusted depression that could be the basin of an evaporated lake.
"Several geophysical surveys were conducted at the OCA project in the late 2022 and early 2023," said First Lithium Minerals Chief Executive Officer and Director Rob Saltsman. "We are pleased to report very encouraging results from the MT survey as we identified pronounced geophysical anomalies at our prospects at the salars."
The MT data gives an estimate to the base of a potential brine layer at the project, and may be useful in defining future resource estimates, the company said.
Needed for batteries crucial to the new green economy, the global lithium market is expected to reach US$19 billion by 2030, according to a report from Research and Markets.
"Rising investments in lithium mining and related technologies are projected to remain a key trend in the market," the report said. "Lithium mining is witnessing rapid growth as its demand is accelerating owing to its application in batteries."
The Catalyst: Potential for Future Discoveries
The results of the MT survey show highly conductive horizontal zones of less than 1.0 Ohm-meter signatures, which are typically associated with brine mineralization in hydrogeologic settings across the Andean plateau, First Lithium Minerals said.
Preliminary modeling shows a gradually increasing brine signature at about 200 meters beneath the surface with widths up to 400 meters, reaching a base or bedrock at about 600 meters, the company said.
Highly conductive zones of less than 1.0 Ohm meter were also seen in the southeastern sectors of the Carcote prospects and the northeastern sectors of the Ascotan prospects.
"We believe the identified highly conductive zones are indicative of brine mineralization, suggesting the potential for future discoveries," Saltsman said. "Once the results are analyzed and integrated into our hydrogeologic model we are planning on defining targets for an inaugural exploration drilling program."
The 9,000-hectare project is in the "Lithium Triangle" of Argentina, Bolivia, and Chile, which have about 58% of the world's resources of the element.
The Ollague, Carcote, and Ascotan salars correspond to continental saline deposits. Lithium (Li), potash (K), boron (B), sodiu (Na), and magnesium (Mg) are leached and accumulated and concentrated by evaporation in the salars, the company said.
The salars' groundwater also shows characteristics of a typical brine a few meters below the surface, First Lithium Minerals said.
First Lithium Minerals Corp. was born out of a reverse takeover last summer of First Lithium Minerals Inc. and QL Minerals Inc.
'A Huge Opportunity for Investors'
The world needs lithium and other critical elements like copper to help fuel the move to green energy. The soft, silvery metal with highly reactive and flammable properties is a major component of electric vehicle (EV) batteries. It’s also used to strengthen alloys, as a high-temperature lubricant, and as a drug to treat bipolar disorder.
The deficit between lithium demand and production and highly probable and probable lithium projects will be over 3.5 Mt by 2040, according to Benchmark Mineral Intelligence.
One out of five vehicles sold worldwide could be an EV in less than two years, and Ford and General Motors have set a goal of achieving 40–50% of their sales from EVs in the U.S. by 2030.
To qualify for tax credits under new U.S. laws, a significant percentage of batteries and minerals in batteries must come from the U.S. or Canada.
Streetwise Ownership Overview*
First Lithium Minerals Corp. (FLM:CNSX)
China only has less than a quarter of the world’s lithium resources but controlled about two-thirds of the world’s lithium processing and refining capacity in 2021, Rystad Energy said.
"Government regulations and subsidies are working on expanding clean energy," Research and Markets wrote. "Thus, energy storage systems represent a huge opportunity for investors."
Ownership and Share Structure
About 14% of First Lithium Minerals Corp. is owned by management and insiders, the rest is retail, the company said.
The company has a market cap of CA$13.9 million with 86.9 million shares outstanding. It trades in a 52-week range of CA$0.235 and CA$0.115.
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