Arbor Metals Corp. [TSXV-ABR, 432-FWB] President Mark Ferguson said he remains confident in the outlook for lithium, a key ingredient used in the production of lithium-ion batteries.
“While the spot price for lithium has experienced a recent decline, Abor’s management team maintains confidence in the long-term potential for lithium,’’ he said. “We view the current decline as a short-term issue and anticipate a rebound in lithium prices in 2024.’’
Arbor recently said untested pegmatite outcrops have been identified in the north section of its Jarnet Lithium Project in Quebec. The main sources of lithium for commercial extraction are localized hardrock pegmatites (igneous rocks of post magmatic fluids) and continental brines (saltwater aquifers). Of the various ores found in pegmatite, spodumene ore is generally the most economically viable source of lithium.
The Jarnet lithium project is located in the James Bay region of Quebec. It consists of 47-map designated claims, covering 3,759 hectares. The project is contiguous to Patriot Battery Metals Inc’s [CSE-PMET, OTCQB-PMETF, FSE-R9GA] Corvette – FCI gold-copper-silver-lithium project. The Corvette Project’s CV5 spodumene pegmatite ranks as the largest lithium pegmatite resource in the Americas based on a contained lithium carbonate equivalent and one of the top 10 largest lithium pegmatite resources in the world.
The CV5’s spodumene pegmatite is estimated to host a maiden resource estimate of 109.2 tonnes at a grade of 1.42% Li20 inferred. Patriot recently said drill crews hit approximately 100 metres of near-surface continuous spodumene-bearing pegmatite at the CV9 spodumene pegmatite, which is located roughly 14 kilometres west of the CV5 mineral resource.
In an update on its exploration progress, Arbor said the company’s independent geologist has completed the assessment of samples obtained from the recent exploration program at Jarnet. These samples have been subsequently shipped to ALS Laboratories for assay analysis. The company anticipates receiving results in the coming weeks.
The exploration program was focused on mapping, prospecting activities, and drilling potential targets.
In a press release on October 5, 2023, Arbor said it will conduct a non-brokered private placement under the Listed Issuer Financing Exemption of up to 3.33 million units priced at $1.50 per unit. The aim is to raise $5 million to fund further exploration at the Jarnet project.
The company said each unit will consist of one common share and one-half of one common share purchase warrant. Each warrant will entitle the holder to purchase one common share for $2.00 at any time on or before that date which is 12 months after closing.
On Monday, Arbor shares eased 2.6% or $0.03 to $1.14 on volume of 341,200. The shares currently trade in a 52-week range of $3.69 and $1.08.
