Vancouver-based American Salars Lithium (CSE:USLI) has inked an agreement to take ownership of the Lac Simard South Project in Québec.
The project comprises 64 claim blocks covering 3,672.75 hectares next door to Sayona Mining’s (ASX:SYA) and Refined Metals’ (CSE:RMC) Lac Simard property that sampled 4.52% lithium oxide and 5.88% tantalum oxide.
American Salars will issue 50,000 shares to Quartier Mineral to obtain the project.
The company, which has a market capitalisation of around C$3.6 million ($3.9 million), has a portfolio of lithium brine projects in Argentina and Nevada in the US.
American Salars’ primary focus is the expansion and development of its 3,000-hectare Candela II Lithium Brine Project in Argentina, which hosts an inferred resource of 457,000 tonnes of lithium carbonate equivalent (LCE) that remains open.
The company also has a shared resource of 760,000 tonnes of LCE at the Pocitos 1 Lithium Brine Project. The resource is shared with the neighbouring Pocitos 2 Project which is not under contract or owned by American Salars.
CEO Robert Horsley says the addition of the Lac Simard South Project marks American Salars’ “first re-entry point into Québec” with the goal being to build a strategic portfolio of hard rock lithium projects to complement the company’s lithium brine assets.
“The company’s long-term belief in a lithium price rebound is steadfast and now is the time to build a multi-jurisdictional lithium company,” he says.
The Lac Simard South project is located 80km southwest of Sayona’s Authier Lithium Project and spans the townships of Beauneville, Clérion, Delbreuil, and ChabertIt.
Sayona’s Abitibi Hub – which comprises its North American lithium, Authier lithium and Tansim lithium projects – host measured and indicated resources of 111 million tonnes @ 1.14% lithium, which is touted as the largest lithium resource in Québec.
American Salars says this lithium hub is more readily accessible, providing relatively lower cost exploration opportunities than James Bay.
The claims in the eastern sector are accessible by a network of logging roads, while the southern and western sectors are accessible by boat or all-terrain vehicle and have very little overburden.
The area is home to an operating lithium concentrator and planned lithium carbonate/hydroxide conversion plant, which American Salars says reduces the need for redundant processing downstream solutions and capital expenditure in the event of an economic discovery.
The company will begin planning for a comprehensive work program to identify targets and test areas of immediate interest.
American Salars is continuing to review additional projects.
The company will be exhibiting at this year’s Prospectors & Developers Association of Canada (PDAC) event being held from 2-5 March in Toronto, Canada.
The annual award winning convention brings together up to 30,000 attendees from over 130 countries for its educational programming, networking events, as well as business and investment opportunities.
Mining.com.au is an official media partner for the upcoming event.
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Write to Angela East at Mining.com.au
Images: American Salars Lithium
