Frontier Lithium Inc. [TSXV-FL; OTCQX-LITOF; FSE-HL2] released results of a summer 2023 regional prospecting and channel sampling program at Pennock, located 22 km northwest of the Spark deposit, northern Ontario. The spodumene-bearing Pennock pegmatite is a 1.5 km long pegmatitic dike trend that was first channelled in 2019 with 16 metres averaging 1.96% Li2O (lithium oxide).
Highlights: Channel 56, located 700 metres east-southeast of the main blowout along the Pennock dike system, crossed three metres of pegmatite averaging 1.8 per cent Li2O. Channel 55, 55 metres east of Channel 56, crossed 5.8 metres averaging 1% Li2O.
“This was our first opportunity to validate the spodumene-bearing Pennock dyke beyond the ‘blowout’ area with continuous channelling across the dykes. They tend to be extensive, continuous and contain high grades of lithium oxide,” said Garth Drever, VP Exploration. “Despite being narrow at surface with widths less than 6 metres and requiring additional channeling and mapping prior to any drill testing, we are excited about the potential discovery upside outside of the project’s mining lease area.”
As part of the 2023 summer drill program at PAK, exploration crews were mobilized to the Pennock area for follow-up to the 2022 mapping and prospecting to complete sampling along 3 channel cuts. This resulted in the discovery of several additional pegmatite/aplite dykes, many of which were channeled. The pegmatite dykes near Channels 55 and 56 had been chip sampled in the past when spodumene had been identified. The channeling has now confirmed the presence of both spodumene and high grades of lithium oxide. Although spodumene was not visibly identified in the lepidolite-bearing aplite at Channel 54, it was channeled to determine the Li2O content and for further study.
Only channels reported here and, in the September 7 and 25 press releases, contained significant values of lithium oxide.
The company also announced that pursuant to its stock option plan it has granted a total 1,500,000 stock options to certain employees, officers, directors, and strategic advisors. The New Options have a term of five years from the date of grant and upon exercise entitles the holder to purchase one common share per New Option at an exercise price of $0.74 per common share.
Additionally, the company announces the repricing of up to [575,000] outstanding stock options. The Repricing excludes Existing Options held by directors and officers of the company and applies to Existing Options previously granted to certain employees of the company pursuant to the company’s stock option plan.
The Existing Options will be repriced from an exercise price of $2.10 and $2.30 per common share to $0.74 per common share and the repricing does not affect the Existing Options’ current vesting schedules, if applicable, and does not extend the term of the Existing Options. The repricing is being taken in response to the current market challenges impacting the lithium sector, a reduction in the ensuing company’s stock price, and to better align with the New Options granted to certain officers and directors. The repricing and grant of the New Options are subject to TSX Venture Exchange approval.
Frontier Lithium is an exploration and development mining company with headquarters and assets in Northern Ontario, a tier-one mining jurisdiction. The 100%-owned PAK Project represents the largest proven land position in a new, premium lithium mineral district, with a high-grade, large tonnage and pure lithium resource.