Musk Metals drilling Elon lithium project, Quebec
Musk Metals Corp. [MUSK-CSE; EMSKF-OTC; 1I30-FSE] has started drilling on its 100%-owned Elon lithium project in Quebec. A first intervention permit was received on May 18, 2022, and a modification of the permit to allow drilling of two additional holes in the southeast was received on August 22, 2022.
Following the summer trail opening campaign, six drill hole pads have already been prepared to the north and west parts of the property. The two new holes to the southeast are currently being prepared.
The company has started to drill the first of its eight planned holes. The approximate length of each hole is 150 metres, for a total 1,200 metres. The holes target magnetic-low, possible sources of soil anomalies or interpreted contact between units. Unexplored targets in the present program will be subject to future exploration work, such as shallow drilling or further trenching. Mountain bike trails, cross-country ski trails and other trails are present on the southern part of the property. To prevent damage to these trails, the company will be using existing roads outside of the trail system to access its drill pads.
The Elon property is strategically located in Abitibi, Quebec, at approximately 600 metres northeast of North American Lithium’s project (recently acquired by Sayona Quebec) and formerly known as Mine Quebec Lithium. North American Lithium produced over 907,000 tons of material at 1.40% Li2O (lithium oxide) between 1955 and 1965. In a June 28, 2022, news release, Sayona Quebec formally approved the restart of the North American Lithium operation for lithium extraction and spodumene concentrate production. In September, 2022, Sayona announced a $200-million contract for the mining operations.
Jourdan Resources is investigating a pegmatite field approximately 1,000 metres southeast of the Elon property, has reported lithium content of up to 2.38% Li2O over 0.90 metres and 1.33% Li2O over 5.25 metres in pegmatites and plans to conduct a second drilling campaign.
This might indicate that the general area is fertile in lithium and that the regional environment is more favourable for additional lithium discovery in the future.
The company also announced a non-brokered private placement for gross proceeds of up to $350,000 at a price of 3.2 cents per unit.
Each unit will consist of one common share of the company and one share purchase warrant, with each warrant good to buy one additional share at a price of five cents per warrant share for five years.
The aggregate gross proceeds from the sale of the private placement will be used for general working capital. In connection with the private placement, the company may pay finder’s fees in cash or securities or a combination of both, as permitted by the policies of the Canadian Securities Exchange.