ORIGINAL: New Energy Acquires Roslyn Lithium Property Within the Georgia Lake Pegmatite Field, Ontario
2022-12-06 08:31 ET - News Release
Vancouver, British Columbia--(Newsfile Corp. - December 6, 2022) - New Energy Metals Corp. (TSXV: ENRG) (OTCQB: NEMCF) ("New Energy" or the "Company") is pleased to announce it has signed an option agreement to acquire 100% interest of twelve (12) claims (254 cells) totalling approximately 5,100 hectares that comprise the Roslyn Lithium Property (the "Property") located 50 km northeast of Nipigon, northwestern Ontario (Figure 1). The Property is located 20 km southeast of the Georgia Lake Pegmatite Field and 35 km southeast of where Rock Tech Lithium just published a PEA supporting the indicated mineral resource of 10.6 Mt (million tonnes) grading 0.88% Li2O and an inferred mineral resource of 4.2 Mt grading 1.0% Li2O https://www.rocktechlithium.com/news/georgia-lake-project:-pre-feasibility-study-published.
Figure 1. Regional location of the Roslyn Lithium Property, northwestern Ontario.
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Roslyn Lithium Project
The Property consists of 12 claims (254 cells) comprising 5,100 hectares. The following salient features make the Property a high merit for hosting lithium-bearing pegmatites:
1) A muscovite-bearing granite is host to the Property, an S-type peraluminous fertile parental granite according to Breaks et al., 20031 and in contact with metasediments which make excellent hosts for pegmatites. Numerous faults transect the Property providing excellent pathways for granitic melts and evolving pegmatites (Figure 2).
2) The Roslyn Lithium Property sits approximately 35 km southeast of the Georgia Lake Pegmatite field where several lithium deposits and occurrences are being explored and developed by Rock Tech Lithium, Ultra Lithium and Infinite Ore Corp. (Figure 3).
3) Breaks et al., 20082 described the Georgia Lake pegmatite field as the largest concentration of rare element mineralization in the Superior Province. The 32 x 105 km pegmatite field hosts 38 rare-element occurrences and 10 spodumene pegmatite deposits and occurrences. Breaks added that further exploration is recommended (Figure 4).
4) Several white pegmatites with garnet and tourmaline have been documented and mapped on the Property by the OGS in 1970 (Ontario Department of Mines map M2293). These are very good indications of fertile granitic melts.
5) The Property has logging road access from the Trans-Canada Highway 11.
Figure 2. Regional geology and mineral occurrences of the Property (Source OGS).
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Figure 3. Lithium occurrences and deposits of the Georgia Lake Pegmatite Field (Source OGS).
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Figure 4. Lithium occurrences, deposits and rare-element occurrences of the Georgia Lake Pegmatite Field (Source Breaks et al., 2008).
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Transaction
Pursuant to the option agreement, New Energy Metals has the option to acquire a 100% interest in the Property from third parties by making four (4) cash payments and three (3) stock issuances totalling $2,300,000 in cash, 1,430,000 shares and $200,000 equivalent in company securities in accordance with the following schedule:
(i) $100,000 cash payment and 1,430,000 in company shares within 60 days of signing of this Agreement (the "Initial Payment")
(ii) an additional $100,0000 cash payment and $100,000 equivalent in company shares as per TSX Venture policy on the 1st anniversary of the on signing date of this agreement;
(iii) an additional $100,000 cash payment and $100,000 equivalent in company shares as per TSX Venture policy on the 2nd anniversary of the on signing date of this agreement;
(iv) an additional $2,000,000 cash payment on the 3nd anniversary of the signing date of this agreement;
The optionors will retain up to a maximum of a 3% net smelter royalty ("NSR") on the Property of which 0.5% can be repurchased at any time for $1,000,000.
The Option Agreement remains subject to approval by the TSX Venture Exchange.
The company has also engaged Lakeside Enterprises Inc. to provide content creation, distribution and advertising services. The term of the agreement commences December 6, 2022, for two months. Pursuant to the agreement, the company will compensate Lakeside with a total fee of $60,000.
Qualified Person
The technical content of this news release has been reviewed and approved by Mike Kilbourne, P. Geo., who is an independent Qualified Person (QP) as defined in National Instrument 43-101, Standards of Disclosure for Mineral Projects. The QP and the Company have not completed sufficient work to verify the historic information on the Property particularly regarding historical exploration, neighbouring companies, and government geological work.
References and Disclosures
- Breaks, F.W., Selway, J.B. and Tindle, A.G. 2003. Fertile peraluminous granites and related rare-element mineralization in pegmatites, Superior Province, northwest and northeast Ontario: Operation Treasure Hunt; Ontario Geological Survey, Open File Report 6099, 179p.
- Breaks, F.W., Selway, J.B. and Tindle, A.G., 2008. The Georgia Lake Pegmatite Field and S-Type, Peraluminous Granites, Quetico Subprovince, North-Central Ontario. Ontario Geological Survey, Open File Report 6099, 211 p.
About Energy Metals
New Energy Metals is listed on the TSX Venture Exchange under the symbol ENRG and is a Canadian-based resource company. The Company has an option to purchase a 100% title and interest in the Troitsa property covering approximately 7,000 hectares located in the Omineca Mining Division of British Columbia.
ON BEHALF OF THE BOARD OF DIRECTORS
Rishi Kwatra
CEO, Director
New Energy Metals Corp.
#2710 - 200 Granville Street
Vancouver, BC V6C 1S4, Canada
Tel: 778.510.5757
Neither the TSX Venture Exchange nor its Regulation Service provided (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statement