Metal Energy Corp (TSX-V:MERG, OTCQB:MEEEF) said it has acquired additional claims directly adjacent to the SourceRock project in Ontario.
"These are essential claims to SourceRock as their previous drill holes demonstrate that we are within a high-pressure sedimentary basin with very high salinity. However, lithium was not a marketable commodity when these drill holes were completed and thus never analyzed in either the fluids or the rocks,” James Sykes, CEO of Metal Energy, said in a statement.
“Metal Energy now controls a dominant land position covering the deepest parts of the basin. All the pathfinder elements and multiple supporting documents suggest high lithium concentrations are probable. SourceRock is permitted to drill, and we believe a few drill holes can assess the geologic validity of our thesis."
The company said on July 8, 2023, it entered an agreement to acquire 100% interest in nine mining claims (189 hectares) adjacent to SourceRock. Under the terms of the agreement, the company will issue 1,800,000 common shares to the seller and pay $10,000 in cash. The seller retains a 2% Gross Value Royalty on the claims and the company has the right to purchase 1% of the GVR for $1,000,000 at any time.
The mining claims were drilled in 2006 and intersected significant saline water flow and halite cubes, sedimentary cements, and beds, including halite precipitating from waters as the core dries. Halite precipitating, as described in the core logs, suggests the saline fluids are supersaturated with high concentrations of total dissolved solids which typically correlate with high lithium concentrations.
SourceRock, a drill-ready project, has an exploration permit in hand from the Ontario Ministry of Mines for up to 20 drill pads. It is highly prospective for lithium brines in the Thunder Bay-Nipigon area of northwestern Ontario. The project covers 915 square kilometres within an area measuring approximately 10 to 20 km wide by 95 km long of the Proterozoic Sibley sedimentary basin.
Metal Energy is a nickel and battery metal exploration company with three projects in Manibridge in Manitoba, and SourceRock and Strange in Ontario.
Contact the author at jon.hopkins@proactiveinvestors.com