In an era when the global lithium market is forecast to reach US$22.6B by 2030, it’s no wonder that explorers are hunting for the critical metal in several prospective jurisdictions across Canada.
A recent Global Newswire report stated that the global market for lithium was estimated at US$7B in 2022 and is projected to reach a revised estimate of US$22.6B by 2030, growing at a compound annual growth rate (CAGR) of 15.7% during that period.
One area of Canada that is receiving particularly strong interest is Manitoba, where a prospective and supportive government are attracting explorers from all over the world to hunt for the key renewable energy metal.
The Manitoba Geological Survey has declared a commitment to improving the understanding of lithium resources in the province. Magmatic deposits (pegmatite) in the Archean Superior province and Paleoproterozoic Trans-Hudson orogen are currently being evaluated as sources of lithium.
In Manitoba’s world-class Tanco deposit, located in the Bird River greenstone belt of the Archean Superior province, spodumene pegmatite has already historically represented an important lithium ore.
The Williston Basin overlies the Precambrian basement in southwestern Manitoba and contains several stacked saline aquifers, as well as thick evaporite deposits, that may host lithium brines or salts but have yet to be systematically evaluated for their potential.
Lithium-bearing pegmatite
Granitic pegmatite contains the largest known resources of lithium in Manitoba. The most prolific region is the Winnipeg River–Cat Lake pegmatite field, which hosts the world-class Tanco lithium-cesium-tantalum deposit, along with numerous other pegmatites that collectively define this large field.
Elsewhere in the province, lithium-bearing pegmatite occurs at Red Sucker Lake, Gods Lake, Cross Lake, Red Cross Lake, McLaughlin Lake, and Wekusko Lake in the Paleoproterozoic Trans Hudson orogen, indicate widespread potential for this deposit type. Spodumene, petalite, and lepidolite are the most common lithium-bearing minerals in this type of deposit.
Grid Metals
Manitoba lithium specialist Grid Metals Corp. (TSXV: GRDM) believes the province is an ideal place to search for and develop the highly desired metal.
It says:
- Manitoba is a gateway to the US and overseas market from Central Canada
- The province currently exports lithium, nickel and other metal concentrates
- Location is poised to benefit from US Inflation Reduction Act with access to US market
- High ESG credentials – 97% of Manitoba power is hydroelectrically generated
- Grids advanced projects located near provincial capital and excellent infrastructure
- Supportive governments and regulatory regime
The company recently added to its Manitoba lithium portfolio when it acquired mineral rights comprising the Falcon West Lithium Property, which is located approximately 110km east of Winnipeg and 100km south of the company’s Donner Lake lithium property. The property covers 61,268ha and ~70km of strike length of a highly prospective geological contact zone that features several drill intersected spodumene-rich pegmatites featuring highly anomalous lithium grades.
The initial focus of exploration in the new area will be the “ADL” (the ArtDon and Lucy pegmatites) target area, which comprises a ~1.25 km trend of outcropping lithium bearing pegmatites.
President and CEO, Robin Dunbar, said the company believes the Falcon West acquisition is highly complementary to its Donner Lake Lithium project as both are located in an infrastructure-rich exploration jurisdiction.
“Falcon West is a project of great potential that has flown under the radar despite its known lithium pedigree and close proximity to the Tanco rare metal mine and mill,” Mr Dunbar said.
“It is a rare occurrence in today’s active lithium market when a company can amalgamate such a large mineral claim package with known lithium-bearing pegmatites. The company looks forward to working with local First Nation governments and the province of Manitoba to increase the lithium economic potential in the region. These are exciting times for the province as it further cements its position as a major, future source of critical metals including lithium and nickel.”
Drilling Success
Grid Metals reported impressive results in February from an additional 12 holes and has completed resource drilling at the Donner Lake Lithium property. The drilling is part of the maiden 43-101 compliant resource delineation programme at Donner Lake.
The results so far have continued to outline a steeply dipping LCT-type pegmatite dyke with predominantly spodumene mineralization in the drill core, with 36 drill holes completed in the core resource area of the Main Dyke.
Drilling for both the Main and Northwest dykes was completed this April with the pending resource calculation for Donner Lake yet to come with some further assay results still pending.
Donner Lake is currently a 75% / 25% joint venture with Lithium Royalty Corp. Grid has a memorandum of understanding (MOU) in place with Tantalum Mining Corporation of Canada Limited focused on creating a toll milling operation to process spodumene-bearing pegmatites from Grid’s Donner Lake property.
Nova Minerals
Another Manitoba specialist is Nova Minerals Limited’s (ASX: NVA) subsidiary Snow Lake Lithium, which is currently on a path for a “fast-track-growth-strategy.”
Nova CEO, Christopher Gerteisen, says the company’s majority owned Snow Lake Resources Ltd is committed to being the first fully renewable energy powered electric mine in the world, capable of delivering a completely traceable, conflict free, net zero carbon, battery grade lithium to the growing electric vehicle, battery storage, and consumer markets.
He says Snow Lake is fast-tracking a project with the aim of generating early positive cash flows from an initial simple direct shipping ore (DSO) operation and further spodumene concentrate sales.
Snow Lake has a dominant 56km2 land position, and the Thompson Brothers Lithium project currently has a mineral resource estimate of 9.08Mt @ 1.00% Li2O indicated and 1.97Mt @ 0.98% Li2O inferred and is currently undertaking resource expansion drilling to significantly increase the resource size and confidence.
The company has signed a non-binding MOU with LG Energy Solution as a next step towards building the domestic supply chain for the North American electric vehicle market.
Snow Lake Lithium and LGES will collaborate to explore the opportunity to create one of Canada’s first lithium hydroxide processing plants in CentrePort, southern Manitoba.
LGES, a subsidiary of LG Energy Solution, is a leading global manufacturer of lithium-ion batteries for electric vehicles, mobility, IT and energy storage systems. LGES’s robust global network, which spans North America, Europe, Asia, and Australia, includes battery manufacturing facilities established through joint ventures with major OEMs such as General Motors, Honda, Stellantis N.V., and Hyundai Motor Group.
Under the terms of the MOU, Snow Lake Lithium will supply LGES with lithium over a 10-year time period with production set to begin in 2025.
