Argonaut is targeting hard-rock lithium deposits at Crescent Lake with a view to defining a lithium reserve for mining.
Hard-rock lithium deposits generally involve the mineral spodumene which is hosted within thick, coarse-graining veins called pegmatites.
Of the 39 possible occurrences, three are positively identified as spodumene bearing and 24 have a coarse-grained texture diagnostic of pegmatites.
Argonaut holds an option agreement to acquire 100% of the Crescent Lake claims - the expiry of the option has now been extended until 28 February, 2017.
Argonaut will now assess the assays from the mapping program to conclude whether it exercises the option.
Argonaut is focused on fast-tracking the development of its three lithium assets.
The company currently has rights to two Canadian projects – Crescent Lake and Greenbush Lake.
It also owns 100% of the Lake Blanche lithium target in South Australia.
Crescent Lake lithium project
Crescent Lake is located 250 kilometres from Thunder Bay in Ontario, Canada.
During March 2016, Argonaut acquired an option to acquire the Falcon Lake and Zigzag blocks within the Crescent Lake Lithium Project.
Argonaut later pegged additional claims in the area between Falcon Lake and Zigzag. These 100% held claims cover prospective, underexplored areas.
In July, Argonaut completed a six-hole program of diamond core drilling at the Falcon Lake West deposit.
The program targeted two pegmatite units, one of which outcrops boldly. Highlights included 24.4 metres at 1.48% lithium oxide from 10.9 metres.
Assays pending from mapping
In November, Argonaut completed a detailed mapping program across areas previously identified as prospective for pegmatite occurrences.
The survey team identified 39 possible pegmatites. The newly mapped occurrences were predominantly located in the areas of known occurrences.
Of the 39 occurrences:
- 3 are positively identified as spodumene bearing;
- 24 have a coarse-grained texture diagnostic of pegmatites;
- 4 are not in-situ;
- Sizes ranged from 20 metre outcrop of unknown thickness to 10 centimetre thick vein; and
- 34 occurrences are located on optioned claims and five occurrences are on claims held 100% by Argonaut’s subsidiary, Sunrise Canada Inc.
The most promising occurrence mapped is exposed over 20 metres. This occurrence is located in the Falcon Lake area and is a newly discovered pegmatite.
This pegmatite may contain spodumene and may have a significant strike length and thickness.
Samples collected during the program have been submitted for assay
The original option agreement required Argonaut to complete its assessment of the project by 30 November 2016 at which time Argonaut could elect to purchase 100% of the claims for CAD$200,000.
A variation and extension to the option agreement has now been executed which provided for the following amended terms:
- Canadian Orebodies granted Argonaut an extension to the assessment period under the option agreement from 30 November 2016 to 28 February 2017;
- In exchange for the grant of this extension, Argonaut made a cash payment of CAD$50,000 and issued A$70,000 worth of ordinary shares; and
- may make a final purchase payment of CAD$150,000 on or before 28 February 2017, at the conclusion of the assessment.