Diversified explorer Forrestania Resources (ASX:FRS) has earned a 50% interest in the Hydra Lithium Project in Quebec, Canada under a joint venture (JV) agreement with ALX Resources (CVE:AL).
The company intends to continue compiling historical data related to Hydra, and other regions that are prospective for lithium-caesium-tantalum (LCT) pegmatites.
Meanwhile, ALX is planning airborne and photogrammetric surveys to provide additional geophysical, topographic, and aerial visual information to help locate and map the pegmatite bodies.
ALX has access to a proprietary high-resolution airborne geophysical database acquired from historical diamond exploration in the James Bay region that could provide ‘important’ information for the identification of regional trends with potential for hosting pegmatitic rocks.
Forrestania says ALX will utilise a high-resolution drone during the evaluation of the Hydra sub-projects to optimise the process of locating and assessing prospective pegmatite outcrops.
The company reports fieldwork at various sub-projects is planned to restart in the coming weeks, and will focus on systematic prospecting, geological mapping, and geochemical sampling. A proprietary artificial intelligence (AI) process for pegmatite detection by Nova Scotia-based KorrAI is continuing to prioritise target definition for the program.
Under the JV agreement, ALX will be responsible for conducting exploration work, however, Forrestania team members will also spend time in the field during the program.
To earn the 50% interest in Hydra, Forrestania paid an initial CAD$50,000 non-refundable deposit, along with a cash payment of CAD$350,000, and issued CAD$600,000 worth of shares to ALX.
Forrestania reports it will form a JV agreement with ALX to explore and administer the properties, with ALX acting as operator in exchange for an industry standard administration fee.
Commenting on the JV agreement, Forrestania Resources Managing Director Michael Anderson says: “We are very pleased to have formalised the joint venture with ALX to become 50:50 partners in the Hydra Lithium Project.
From our perspective securing a strategic foothold in the dynamic James Bay lithium space is hugely complementary to our existing project portfolio back at home in Western Australia, and provides us with significant additional discovery potential. We very much look forward to collaborating with ALX to unlock that potential.”
“We are very pleased to have formalised the joint venture with ALX to become 50:50 partners in the Hydra Lithium Project”
ALX Resources is a Vancouver-based explorer that holds a portfolio of assets considered prospective for uranium, lithium, nickel, copper, cobalt, and gold across Canada.
The Hydra Lithium Project consists of 8 sub-projects including the Volta, Echo, Nike, Sprite, Cobra, Viper, Python West, and Python East sub-projects which cover a combined landholding of 29,263 hectares.
Forrestania Resources is a diversified Australian explorer searching for lithium, gold, and nickel across its Forrestania, Southern Cross, and Eastern Goldfields projects in Western Australia.
On 4 July 2023, the company completed an entitlement offer that raised $1.935 million to fund exploration at the Forrestania and Eastern Goldfields projects.
Write to Harry Mulholland at Mining.com.au
Images: Forrestania Resources Ltd