Frontier and Rio Tinto Compared to Snow Lake Lithium that LG energy has just partnered with, the Pak deposits are currently four times larger (42 mm tonnes and growing), 50% higher in grade and will be much easier to mine (low strip open pit vs underground at Snow Lake). PAK also has, or will have, just as good, or better, infrastructure, with power line towers now up only 4 km from the deposit, the winter road currently being upgraded with government funding, and a construction camp already built nearby. So next question is who will step up to the plate to partner with Frontier? The new ore reserve estimate, coming this quarter, is being fast-tracked, indicating they may already be in serious talks with somebody. I’m putting my money on Rio. Rio is flush with cash from their iron ore and coal operations, they just had their big proposed lithium mine in Serbia squashed, and their Diavik diamond mine in Nunavut will be shutting down in 2025, freeing up a whole wack of mining equipment and experienced personnel at exactly the same time that construction is due to start at PAK. Seems like a match made in heaven, but will they pull the trigger? Or will Tesla show up and try to steal the show? Or, if they’re just focusing on the higher-grade Pak pegmatite for Phase I, perhaps they don’t need a partner for that (see Buffalo’s post below) and will wait for Phase II before partnering up.
The Mookster