Lithium and gold explorer Forrestania Resources (ASX:FRS) dedicated its Q2 2023 to defining potential follow-up targets for its Western Australian and Canadian lithium projects.
The company, which has a $10.13 million market capitalisation, said in its latest quarterly report released yesterday (31 July 2023) it had completed a 23-hole reverse circulation (RC) drilling program at its Forrestania Project in WA, including at the Calypso, South Iron Cap East, and Giant prospects.
Forrestania reports drilling identified visible spodumene in logged pegmatite at South Iron Cap East, as well as 6 metres of spodumene-bearing pegmatite logged from 40m in drillhole FSIR0010.
This pegmatite led the company to believe it represented a small component of a more ‘extensive’ system.
Drilling also encountered multiple stacked pegmatites in 13 of 14 holes at the Maiden prospect. The company notes drilling demonstrated continuity of the Giant pegmatite along the extent of tenement M77/549.
Forrestania’s Calypso prospect is also believed by the company to be a prospective host for lithium-caesium-tantalum (LCT) pegmatites following the return of anomalous soil geochemistry, outcropping pegmatites, and pegmatite intercepts within historical drilling.
Assays from this drilling program are expected in 4-6 weeks and are hoped to inform targeting for follow-up drilling at the project.
On 9 May 2023, Forrestania also announced it finalised a strategic joint venture (JV) on the Hydra Lithium Project in Quebec, Canada.
The company will be collaborating with seasoned operator ALX Resources (TSXV: AL), which has already undertaken the staking of the 8 sub-projects that comprise the Hydra project, and subsequent to the end of the quarter, Forrestania has earned a 50% interest in the project.
In order to achieve this equal ownership, Forrestania delivered a non-refundable CAD$50,000 deposit ahead of closing, a CAD$350,000 cash payment on closing, and CAD$600,000 in shares within 5 days of closing to ALX Resources.
Following this, the company moved forward with an entitlement issue to raise $1.94 million before expenses.
Eligible shareholders were invited to participate on the basis of 2 new fully paid ordinary shares for every 5 shares held on the record date at $0.07 per share together. The shares came with a 1-for-1 free option with an exercise price of $0.15 each on or before 30 June 2026.
Throughout the quarter, multiple outcropping pegmatites up to 100m in strike length were mapped at the Alexandra Bore/Breakaway Dam project area in the Eastern Goldfields region of Western Australia. These tenements have never been previously explored for lithium, according to Forrestania.
This discovery was further supported by the definition of additional outcropping pegmatites at the Bonnie Vale Project area near the township of Coolgardie.
Forrestania Resources is an ASX-listed explorer searching for gold, lithium, and nickel across its portfolio of assets in Western Australia and Canada.
The company’s portfolio comprises the Forrestania, Southern Cross Gold, and Leonora Gold projects in Western Australia, as well as the equally owned Hydra Lithium Project in Quebec, Canada, under a JV with ALX Resources.
Write to Adam Drought at Mining.com.au
Images: Forrestania Resources Ltd