Cazaly Resources Limited (ASX: CAZ) has entered into an exclusive binding agreement to acquire up to 100% of the Sundown Lithium project in Quebec, Canada.
The Project is located in the world-class James Bay Lithium Province, host to several advanced lithium projects and new lithium discoveries in Canada and comprises 510 mining claims covering pegmatite outcrops spanning over 260 sq. km.
“We are extremely pleased to have an exclusive binding agreement to acquire the Sundown Lithium Project,” Managing Director, Tara French, said.
“The Project is an excellent addition to our recent Canadian Rare Earth Elements project acquisition, and provides Cazaly with another excellent discovery opportunity, this time for lithium, another critical mineral.
“The project is a massive landholding in the heart of the James Bay Lithium district, a district known for its very large scale and high-grade lithium resources.
“Data acquisition and compilation has commenced and desktop studies are underway as part of our due diligence process, which will in turn advance the project and inform our exploration work plan moving forward.”
Project details
The Sundown Lithium Project has over 200 outcropping pegmatites reported across the vast 260 sq. km, providing excellent potential for a new hard rock lithium discovery.
The Project is located between Allkem’s James Bay deposit with a lithium reserve of 37.2Mt at 1.3% Li2O, and Patriot Battery Metals Corvette Lithium Discovery which is host to 70 lithium bearing pegmatites over a 214sqkm land package.
Further recent successes in the region include Critical Elements’ Rose deposit (37.2Mt @ 0.94% Li2O)4, Nemaska’s Whabouchi deposit (36.6Mt @ 1.3% Li2O) and Winsome Resources’Cancet exploration target with 15-25Mt @1-2% Li2O.5
Allkem’s project is in the final feasibility stages and is expected to produce a spodumene concentrate utilising hydropower over a 19-year mine life for a pre-tax NPV of US$1.42 billion.
The Sundown Lithium Project is readily accessible by road and with advanced projects in the district, has the added benefit of access to excellent infrastructure including hydropower.