Mr. Rishi Kwatra reports
NEW ENERGY ACQUIRES ROSLYN LITHIUM PROPERTY WITHIN THE GEORGIA LAKE PEGMATITE FIELD, ONTARIO
New Energy Metals Corp. has signed an option agreement to acquire 100-per-cent interest of 12 claims (254 cells) totalling approximately 5,100 hectares that comprise the Roslyn lithium property located 50 kilometres northeast of Nipigon, Northwestern Ontario. The property is located 20 km southeast of the Georgia Lake pegmatite field and 35 km southeast of where Rock Tech Lithium just published a preliminary economic assessment supporting the indicated mineral resource of 10.6 Mt (million tonnes) grading 0.88 per cent Li2O (lithium oxide) and an inferred mineral resource of 4.2 Mt grading 1 per cent Li2O.
Roslyn lithium project
The property consists of 12 claims (254 cells) comprising 5,100 hectares. The following salient features make the property a high merit for hosting lithium-bearing pegmatites:
- A muscovite-bearing granite is host to the property, an S-type peraluminous fertile parental granite, according to Breaks et al., 2003, and in contact with metasediments which make excellent hosts for pegmatites. Numerous faults transect the property, providing excellent pathways for granitic melts and evolving pegmatites.
- The Roslyn lithium property sits approximately 35 km southeast of the Georgia Lake pegmatite field where several lithium deposits and occurrences are being explored and developed by Rock Tech Lithium, Ultra Lithium and Infinite Ore Corp.
- Breaks et al., 2008, described the Georgia Lake pegmatite field as the largest concentration of rare element mineralization in the Superior province. The 32 by 105 km pegmatite field hosts 38 rare element occurrences and 10 spodumene pegmatite deposits and occurrences. Breaks added that further exploration is recommended.
- Several white pegmatites with garnet and tourmaline have been documented and mapped on the property by the Ontario Geological Survey in 1970 (Ontario Department of Mines map M2293). These are very good indications of fertile granitic melts.
- The property has logging road access from the Trans-Canada Highway 11.
Pursuant to the option agreement, New Energy Metals has the option to acquire a 100-per-cent interest in the property from third parties by making four cash payments and three stock issuances totalling $2.3-million in cash, 1.43 million shares and $200,000 equivalent in company securities in accordance with the following schedule:
- $100,000 cash payment and 1.43 million in company shares within 60 days of signing of this agreement;
- An additional $100,0000 cash payment and $100,000 equivalent in company shares as per TSX Venture Exchange policy on the first anniversary of the on signing date of this agreement;
- An additional $100,000 cash payment and $100,000 equivalent in company shares as per TSX Venture Exchange policy on the second anniversary of the on signing date of this agreement;
- An additional $2-million cash payment on the third anniversary of the signing date of this agreement.
The optionors will retain up to a maximum of a 3-per-cent net smelter return (NSR) royalty on the property of which 0.5 per cent can be repurchased at any time for $1-million.
The option agreement remains subject to approval by the TSX Venture Exchange.
The company has also engaged Lakeside Enterprises Inc. to provide content creation, distribution and advertising services. The term of the agreement commences Dec. 6, 2022, for two months. Pursuant to the agreement, the company will compensate Lakeside with a total fee of $60,000.
The technical content of this news release has been reviewed and approved by Mike Kilbourne, PGeo, who is an independent qualified person (QP) as defined in National Instrument 43-101 -- Standards of Disclosure for Mineral Projects. The QP and the company have not completed sufficient work to verify the historic information on the property, particularly regarding historical exploration, neighbouring companies and government geological work.
About New Energy Metals Corp.
New Energy Metals is listed on the TSX Venture Exchange under the symbol ENRG and is a Canadian-based resource company. The company has an option to purchase a 100-per-cent title and interest in the Troitsa property covering approximately 7,000 hectares located in the Omineca mining division of British Columbia.
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