Critical Elements Lithium Corp. [TSXV: CRE; OTCQX: CRECF; FSE: F12] reported initial results from the 2025 summer exploration program completed on Critical Elements’ 100%-owned Nemaska Belt properties group, in the Eeyou Istchee region of Québec.
An important helicopter-borne electromagnetic VTEM plus time-domain system (VTEM) survey covering the Nemaska Belt properties was designed to provide data incremental to the high-resolution magnetic survey completed in 2021. These datasets aided the exploration team’s surface program targeting potentially economic mineralization, including high-grade nickel-copper-PGE and lithium-bearing spodumene.
Interest in high-grade nickel-copper-PGE mineralization in the region has increased with the exploration success of Power Metallic Mines Inc., formerly Chilean Metals Inc. Critical Elements optioned the Nisk property to Power Metallic in 2020. Following the exercise of the option agreement by Power Metallic on the property hosting the Ni-Cu-EGP Nisk deposit and the new polymetallic Lion discovery, Critical Elements retains a non-dilutive interest of 20% until a definitive feasibility study regarding extraction and production activities is completed on the Nisk property. Critical Elements also held just over 10 million shares of Power Metallic as of May 31, 2025.
During the 2025 summer exploration program, multiple mineralized zones were identified through rock sampling in areas coinciding with electromagnetic anomalies (VTEM conductors). The mineralization is dominated by pyrrhotite and pyrite (iron sulfide) with trace to 3-5% chalcopyrite (copper sulfide) and/or pentlandite (iron-nickel sulfide). Surface exploration confirmed historical showings and identified newly prospective areas.
In total, 1,091 rock samples and 73 till samples (0.5kg C-horizon) were collected during the summer campaign, of which 452 rock samples assays are still pending. The exploration program was designed to maximize geochemical coverage and assist in defining targets for future drill testing.
Of these samples: 25 grab samples grading above 0.1% nickel, with values up to 0.76% nickel; 17 grab samples grading above 0.1% copper, with values up to 2.00% copper; 9 grab samples grading 0.1 g/t or above palladium, with values up to 0.62 g/t palladium; 1 grab sample assaying 3.38 g/t platinum; 6 grab samples grading over 0.025% cobalt, with values up to 0.07% cobalt; 35 grab samples grading above 1.0 g/t silver, with values up to 13.6 g/t silver and 2 grab samples assaying 0.32% and 0.22% molybdenum.
Critical Elements’ 100%-owned Nemaska Belt properties consist of 1,052 Exclusive Exploration Right across 10 different property blocks, covering a total of 540 km2. The portfolio spans over 100 km of the Nisk structure and its associated volcano-sedimentary belt. This east-northeast-oriented belt features recognized potential for lithium-associated pegmatite dykes and copper, nickel, and PGE mineralization associated with ultramafic rocks.
The company expects to receive final assay results from the 2025 summer exploration program over the next few weeks. All the results from this surface program and previous geophysical surveys will be incorporated to refine its planned 2026 winter drill program. This drill program will test the newly generated high-grade nickel-copper-PGE and lithium-bearing spodumene drill targets.
The program will also seek to expand the mineralized footprint of the Rose West Discovery. Rose West lies within the 395 km² Rose Lithium-Tantalum and Rose South property blocks and is located less than 10 km west of the Corporation’s flagship Rose Lithium-Tantalum Project. The Rose Lithium-Tantalum Project Feasibility Study published in August 2023 returned an after-tax NPV8% of US$2.2 billion and an after-tax IRR of 65.7%.
Management continues to be engaged in assembling the funding required to make a final investment decision on the Rose project. These efforts build on the $20 million conditional funding from Natural Resources Canada’s Critical Minerals Infrastructure Fund and the support letter from a leading Canadian financial institution stating its interest in providing long term debt financing of up to US$115 million (approximately C$150 million) of project debt.
Critical Elements aspires to become a large, responsible supplier of lithium to the electric vehicle and energy storage system industries. To this end, Critical Elements is advancing the wholly-owned, high-purity Rose Lithium-Tantalum project in Québec, the company’s first lithium project to be advanced within a land portfolio of over 1,050 km2. On August 29, 2023, the corporation announced results of a new Feasibility Study on Rose for the production of spodumene concentrate.
The after-tax internal rate of return for the Project is estimated at 65.7%, with an estimated after-tax net present value of US$2.2B at an 8% discount rate. In the corporation’s view, Québec is strategically well-positioned for US and EU markets and boasts good infrastructure including a low-cost, low-carbon power grid featuring 94% hydroelectricity.
The project has received approval from the Federal Minister of Environment and Climate Change on the recommendation of the Joint Assessment Committee, comprised of representatives from the Impact Assessment Agency of Canada and the Cree Nation Government, received the Certificate of Authorization under the Environment Quality Act from the Québec Minister of the Environment, the Fight against Climate Change, Wildlife and Parks, and the project mining lease from the Québec Minister of Natural Resources and Forests under the Québec Mining Act.
