Frontier Lithium Inc.'s (FL:TSX.V; LITOF:OTCQX; HL2:FRA) recently reported a batch of drill results from the Spark deposit of its PAK project in northwestern Ontario returned "grades well above the current mineral resource estimate (1.37%)" over significant widths, reported Canaccord Genuity analyst Katie Lachapelle in an October 11, 2022 research note. These grades averaged 1.92%, 1.74%, 1.57% and 1.55% lithium oxide (Li2O).
"We continue to be impressed by the positive results from the phase seven drill program," Lachapelle commented.
"We continue to be impressed by the positive results from the phase seven drill program," Lachapelle commented and provided the best of them.
Standout hole PL-067-22 returned the most impressive mineralized intersection, 326.6 meters (326.6m) of 1.92% Li2O, including 50m of 2.98% Li2O.
Other highlights are:
- 171.5m of 1.57% Li2O, including 45.3m of 1.86% Li2O and a zone of 19.2m of 2.88% Li2O, 2.23% cesium oxide, and 513 parts per million tantalum pentoxide, in hole PL-065-22
- 275.3m of 1.74% Li2O, including 30m of 2.32% Li2O, in hole PL-069-22
- 124.1m of 1.55% Li2O in hole PL-072-22
Implications of the data
Given the high grades of all the Spark drill results to date, the Indicated portion of the mineral resource there will likely have a higher grade, Lachapelle pointed out, and the resource will most probably include new Inferred material. Additionally, Spark remains open in all directions.
Canaccord Genuity has a Speculative Buy rating and a CA$4.75 per share target price on Frontier, the current share price of which is about CA$2.20.
"Based on the consistency of infill drilling to date, we expect the majority of Frontier's existing mineral resource at Spark to be upgraded and included in the mine plan in the future, which could result in a mine life extension of about 14-18 years," wrote Lachapelle.
Focus Going Forward
Lachapelle relayed that now, after completing about 11,150m of drilling in 34 holes, Frontier's priority is defining the boundaries of the pegmatite and deepening some previously drilled holes at depth.
In terms of lithium production, Lachapelle noted, Frontier is speeding it up in a phased approach in concert with increased demand for concentrate. In the first phase, the Canadian company will sell spodumene concentrate from a mine and mill operation. During phase two, it will add production of lithium chemicals.
Canaccord Genuity has a Speculative Buy rating and a CA$4.75 per share target price on Frontier, the current share price of which is about CA$2.20.
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Disclosures For Canaccord Genuity Group Inc., Frontier Lithium Inc., October 11, 2022
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