Top lithium stock eyes further returns with high-grade discovery

• Critical Elements Lithium (TSXV:CRE), a top-performing lithium stock, has unveiled grab sample results from a new high-grade spodumene-bearing pegmatite 8 kilometres west of its Rose deposit in Quebec
• An initial 10 rock samples are all lithium-bearing with 50 per cent grading over 3 per cent Li2O
• The company will test the discovery through imminent large-scale drilling
• Critical Elements Lithium stock (TSXV:CRE) is up by approximately 130 per cent over the past five years, which is almost five times the S&P/TSX Capped Composite Index’s 26.83 per cent return over the period

Critical Elements Lithium (TSXV:CRE), a top-performing lithium stock, has unveiled grab sample results from a new high-grade spodumene-bearing pegmatite 8 kilometres west of its Rose deposit in Quebec.

The company’s flagship Rose lithium-tantalum project is in the Rose and Rose South property blocks, which make up 395 square km or only 38 per cent of its 1,050 square km exploration portfolio. A feasibility study for the project estimates an after-tax internal rate of return of 65.7 per cent with an after-tax net present value of US$2.2 billion at an 8 per cent discount rate.

Initial prospecting during summer 2023, including 866 rock samples, sought to identify new pegmatite bodies, refine the geological interpretation of the property and prioritize further exploration work. These efforts led to new outcrops in the Rose pegmatite swarm with an apparent strike length exceeding 400 metres.

Results from an initial 10 rock samples are all lithium-bearing, with 50 per cent grading over 3 per cent Li2O. The company is devising a large-scale drill program to test the new discovery.

Selected sample results from the new discovery

“Today’s results are very exciting as the exploration team is now planning a large-scale drilling program at Rose. Furthermore, with more than 395 square kilometres of property at Rose and Rose South, we believe that there might be potentially multiple discoveries in this highly prospective area within trucking distance to the proposed Rose concentrator,” Jean-Sébastien Lavallée, CEO of Critical Elements Lithium, said in a statement.

Quebec-focused Critical Elements Lithium intends to supply lithium to the electric vehicle and energy storage system industries. The company views Québec as a strategic location to supply U.S. and E.U. markets given its prospective geology, high-quality infrastructure and low-cost, low-carbon power grid highlighted by 94 per cent hydroelectricity.

Potential investors can learn more about the company’s flagship Rose project by reading our February 2023 profile as part of the Anatomy of a Flagship Asset series.

Critical Elements Lithium stock (TSXV:CRE) opened with a loss of 2.4 per cent trading at $1.63 per share. The stock is up by approximately 130 per cent over the past five years, which is almost five times the S&P/TSX Capped Composite Index’s 26.83 per cent return over the period.

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