MONTREAL, QC / ACCESSWIRE / April 6, 2022 / Critical Elements Lithium Corporation (TSX-V:CRE)(US OTCQX:CRECF)(FSE:F12) ("Critical Elements" or the "Corporation") is pleased to announce an exploration program for 2022.
The Corporation is preparing an aggressive exploration program for 2022 with the following objectives:
- Expand the main Rose Lithium-Tantalum ("Rose", "Project", "Rose Project") deposit by drilling
- Drill test several satellite showings proximal to the Rose deposit
- Drill the Lemare Lithium project targeting delineation leading to an initial Mineral Resource Estimate
- Conduct an extensive surface exploration program including compilation, artificial intelligence (AI) targeting, prospecting, mapping, rock sampling, and soil sampling with the goal of finding new lithium mineralization warranting follow up drilling
- Prospect and sample the targets identified by the Goldspot Discoveries AI system in 2021 (see press release dated September 7, 2021 for more details)
The Corporation is working to secure diamond drill rigs for the full year with a program of up to 25,000 meters divided between the Corporation's projects:
- 10,000 meters for the expansion of the Rose Lithium-Tantalum deposit
- 7,000 meters to delineate an initial Mineral Resource Estimate at the Lemare Lithium project
- 8,000 meters to explore for and test new targets identified
Figure 1: James Bay projects location map
Figure 2: Goldspot probability Li-Ta, Cu-Ni, Au target map
Corporate update
Permitting
In August 2021, Critical Elements announced that the Federal Minister of Environment and Climate Change had rendered a favorable decision in respect of the proposed Rose Project. In a Decision Statement, which included the conditions to be complied with by the Corporation, the Minister confirmed that the Project is not likely to cause significant adverse environmental effects when mitigation measures are taken into account (see press release dated August 11, 2021 for more details).
The Rose Project is also subject to the provincial environmental and social impact assessment and review procedure pursuant to the Qubec Environment Quality Act in accordance with Chapter 22 of the James Bay and Northern Qubec Agreement ("JBNQA"). This process runs parallel to the federal process. The review of the impact study is conducted jointly by the Cree Nation Government and the Government of Qubec under the Environmental and Social Impact Review Committee ("COMEX").
As noted in the Press Release of February 17, 2022, the provincial assessment is well advanced and has undergone several rounds of questions from COMEX that have been answered by Critical Elements in the normal course of the assessment process. At this time, Critical Elements has received no further questions from COMEX and remains confident in a positive outcome given the stated support for lithium project development in the Province of Qubec. Global recognition of Qubec's appeal is manifest in the recent announcements of significant investments in the EV battery supply chain by BASF and General Motors - POSCO Chemical in the Province.
Once a recommendation decision is made by the COMEX, the recommendation is then transmitted to the Minister of the Environment and the Fight Against Climate Change of Qubec, who may then issue a Certificate of Authorization allowing the Rose Project to proceed. This process may yet take several weeks if a decision was made without further questions.
First Nations Relationship
In July 2019, Critical Elements announced that the Cree Nation of Eastmain, the Grand Council of the Crees (Eeyou Istchee), the Cree Nation Government and the Corporation had signed an impact and benefit agreement, referred to as the Pikhuutaau Agreement (the "Pikhuutaau Agreement"), concerning the development and operation of the Rose Project.
The Pikhuutaau Agreement is a binding agreement that governs the long-term working relationship between the parties while respecting Cree traditional activities and ensuring the promotion of Cree economic and social development based on mutual trust and respect during all phases of the Project through a sustainable development approach. It provides for training, employment, and business opportunities for the Crees and particularly the Crees of Eastmain at the Project, as well as for the cooperation and involvement of the Cree parties with Critical Elements in the environmental monitoring during all phases of the Project. The Pikhuutaau Agreement also ensures financial benefits for the Cree parties on a long-term basis, consistent with the Cree Nation Mining Policy and with Critical Elements' approach to develop the Project while ensuring the promotion of Cree economic and social development in a mutually beneficial manner.
Despite the isolation imposed by the COVID-19 pandemic, Critical Elements has maintained its relationship with the Cree community. Certain initiatives contemplated in the Pikhuutaau Agreement have already commenced. We are proud of this relationship and look forward to working with the Cree community through project development and operation.
Engineering Studies
As announced in the Press Release of June 7, 2021, Critical Elements retained the services of Metso Outotec and WSP in Canada ("WSP") to prepare an engineering study for a chemical plant to produce high quality lithium hydroxide monohydrate for the electric vehicle and energy storage system battery industries. The end-product of the plant would be battery grade lithium hydroxide monohydrate (LMH, >56.5%). It is anticipated that the plant capacity would be approximately 27,000 tpa of LMH, as Lithium Carbonate Equivalent (LCE). Supportive pilot plant work has been ongoing, processing samples from the Rose Project. It is expected that the results of the chemical plant engineering study will be released in the second quarter of 2022.
In the Press Release of February 17, 2022, Critical Elements announced the retention of Bumigeme Inc., WSP, and Golder Associates Ltd to prepare front-end engineering design work for the process plant and related infrastructure and the detailed design of the co-disposal facility for the waste rock and filtered tailings at the Rose Project. In addition, an update to the 2017 Feasibility Study for the Rose Project mine and concentrated will be completed. The Updated Feasibility Study will include a review of pricing for spodumene concentrates, and a review of the capital and operating costs. We expect results from the Updated Feasibility Study to be released in the second quarter of 2022.
Potential Catalysts
Looking forward, Critical Elements recognizes the importance of a timely and positive recommendation from COMEX and the receipt of a Certificate of Authorization from the Qubec Minister of the Environment and the Fight Against Climate Change. We expect that these events may catalyze long-standing discussions regarding offtake and concurrent strategic project and/or corporate investments, which may in turn catalyze completion of project financial engineering. Delivery in the second quarter of 2022 of the engineering studies referenced above, may support a Final Investment Decision by the Corporation and commencement of construction for the Rose Project mine and concentrator targeting commencement of production in 2024, based on the timeline outlined in the 2017 Feasibility Study.
Critical Elements is committed to communicating material events to the market in a timely manner. Through the first quarter of 2022, the Corporation has been actively participating in multiple face-to-face and virtual initiatives reaching thousands of shareholders and investors, highlighting the competitive advantages of the Rose Project and its home jurisdiction, Qubec. Market participants also recognize the importance of the completion of the Qubec permitting process and its potential as a market catalyst.
Qualified persons
Paul Bonneville, Eng., is the qualified person that has reviewed and approved the technical contents of this news release on behalf of the Corporation.