Lithium and gold explorer Forrestania Resources (ASX:FRS) has executed a joint venture (JV) agreement with ALX Resources (CVE:AL) to earn a 50% interest in the Hydra Lithium Project in Quebec, Canada.
Under the agreement, Forrestania will pay ALX CAD$50,000 as a non-refundable deposit for a 60-day exclusivity period ahead of closing, CAD$350,000 in cash on closing, and CAD$600,000 in shares within 5 days of the closing.
At the completion of the earn-in, a JV will be formed between the parties to explore and administer the properties with ALX acting as operator in exchange for an industry-standard administration fee.
Forrestania reports compilation of historical data related to Hydra and other areas in the region prospective for lithium-caesium-tantalum (LCT) pegmatites is ongoing. ALX is planning airborne and photogrammetric surveys to provide additional geophysical, topographic, and aerial visual information to aid in the location and mapping of pegmatite bodies.
Additionally, ALX has access to a proprietary high-resolution airborne geophysical database acquired from historical diamond exploration in the James Bay region that may provide information for the identification of regional trends with potential for hosting pegmatite rocks.
The company says ALX will also utilise a high-resolution drone during the evaluation of the Hydra sub-projects to optimise the process of locating and assessing prospective pegmatite outcrops.
Forrestania reports fieldwork at various sub-projects is planned to restart on 31 May 2023, focusing on systematic prospecting, geological mapping, and geochemical sampling. The company says a proprietary artificial intelligence (AI) process for pegmatite detection by KorrAI is underway to prioritise target definition for this program.
Additionally, ALX has contracted a Quebec-based geological consulting company and a helicopter for the initial phase of the program, and Forrestania notes ALX will undertake the exploration work.
Forrestania will also seek shareholder approval to issue the shares required to close the transaction in a notice of meeting ahead of an extraordinary general meeting (EGM) in due course.
Commenting on the JV agreement, Forrestania Resources Managing Director Michael Anderson says: “We are very pleased to announce that Forrestania has successfully secured a strategic foothold in the dynamic Quebec lithium space.
“This is a major milestone for our company and a testament to our commitment to explore, collaborate, and acquire”
Through this partnership with ALX on the Hydra Lithium Project in James Bay, we are positioning ourselves to capitalise on the enormous exploration potential of this highly prospective region. This is a major milestone for our company and a testament to our commitment to explore, collaborate, and acquire.”
The Hydra Lithium Project comprises 8 sub-projects totalling 29,263 hectares in the James Bay region of Quebec. ALX staked the sub-projects following a review of the public domain geological mapping, and utilised AI technology to conduct a search of Quebec government assessment files.
Forrestania and ALX both believe that Hydra holds ‘significant’ potential for LCT pegmatites, supported by ‘encouraging’ exploration reports from Patriot Battery Metals’ (ASX:PMT) Corvette Lithium Project located nearby.
Forrestania Resources is an exploration company searching for lithium, gold, and nickel in the Forrestania, Southern Cross, and Menzies/Leonor regions of Western Australia. The company’s flagship asset is the Forrestania Project which covers about 100km of the southern Forrestania Greenstone Belt.
ALX Resources is a Vancouver-based exploration company with a portfolio of uranium, lithium, nickel-copper-cobalt, and gold projects. The company holds projects in the Saskatchewan, Ontario, and Quebec provinces of Canada.
Images: Forrestania Resources Ltd
