SUDBURY,
ON, Feb. 22, 2024 /CNW/ - Frontier Lithium
Inc. (TSXV: FL) (FRA: HL2) (OTCQX: LITOF) ("Frontier" or the
"Company") has reported financial results for the third quarter
ended December 31, 2023. The
financial statements and accompanying management's discussion and
analysis for the period ended December 31,
2023 have been filed on SEDAR+ (www.sedarplus.ca) and can be
viewed under the company's website or its profile on SEDAR+.
Q3 2023 Highlights:
- Strong financial position with a cash balance of approximately
$15.5 million
- Received $2 million government
funding via a grant from the Northern Ontario Heritage Fund
Corporation to advance lithium chemicals research.
- Awarded contract to commence and complete a Definitive
Feasibility Study (Phase I) that will advance development of the
mine and mill at the PAK Project
- Exploration drilling further extended and proved the potential
of the Bolt pegmatite, Pennock dyke and Spark deposit.
"We remain in a strong financial position
to further explore and develop our PAK Project,
a high-grade, large tonnage and pure lithium resource strategically
located in Northwestern Ontario. 2024 will be focused on phase
one (mine and mill) of our Definitive Feasibility Study, advancing
environmental baseline studies while communicating with First
Nations communities and advancing project permitting and mine and
mill engineering design support work. While markets can
be turbulent, we have a long-term strategy to bring the PAK Project
into production. The downstream market is there – EV sales
have recently grown 31% year-over-year; EV battery demand accounted
for over 70% of total battery
demand globally; and battery energy
storage became the fastest growing battery
market, increasing 80% over the course of 2023.
These numbers only underscore the need for battery
materials like lithium to be locally and responsibly
sourced in North America."
comments Trevor Walker, President
and CEO of Frontier Lithium.
Recent Developments and Highlights for the Current
Quarter:
Exploration:
- Phase XIII drill program:
-
- The drill program, which commenced in February 2023, has yielded promising results,
delineating the Bolt pegmatite and extending the Spark
deposit.
- In September 2023, results from 4
holes drilled on the western portion of Spark were released
indicating the southwest and northwest lobes remain open with
high-grade intersections.
- Pennock:
-
- In December 2023, the Company
announced results from three channels cut in 2023 across the
Pennock dyke approximately 700 meters to the east of the main
blow-out area.
- Although narrow, these intercepts of spodumene-bearing
pegmatite substantially upgrade the potential at Pennock.
Development:
- Definitive Feasibility Study:
-
- In November 2023, the Company
awarded the mine and mill portion of the Definitive Feasibility
Study ("DFS") to DRA Americas Inc., which continues to advance the
project toward development.
- The DFS will capture the development and financial metrics for
an integrated project, positioning Frontier as a potential producer
of lithium products in the future.
- The DFS may also indicate the potential for Frontier to become
a large and low-cost producer of lithium hydroxide in North America.
Financial Performance: Frontier maintains a strong
financial position with a cash balance
of approximately $15.5 million as of December 31, 2023. The Company remains vigilant
in managing its capital to support exploration and development
activities. Capital management objectives focus on ensuring
operational continuity and monitoring liquidity risk. As
announced on November 9,
2023, Frontier also received a $2 million government grant from
the Northern Ontario Heritage Fund Corporation to advance
testing processes for converting lithium processing by-products
into value added products.
Outlook: Frontier remains committed to its phased
development approach outlined in its Pre-Feasibility
Study ("PFS") and advanced through the DFS. The
Company's focus on becoming a strategic supplier of premium lithium
products aligns with the growing demand in electric vehicle and
energy storage markets. The ongoing DFS will provide
detailed insights into the project's next stages.
Frontier Lithium looks forward to advancing its position as a
key player in the lithium sector, contributing to the sustainable
growth of North America's electric
vehicle and energy storage industries.
For further details, please review the financial statements and
the management's discussion and analysis for the nine months ended
December 31, 2023, available and
filed on SEDAR+ (www.sedarplus.ca).
About Frontier Lithium
Frontier Lithium Inc. (TSX-V: FL) (FRA: HL2) (OTCQX: LITOF) is
an exploration and development mining company with headquarters and
assets in Northern Ontario, a
tier-one mining jurisdiction. The Company's 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. Strategically located in Ontario's Great Lakes region near the United
States Border, Frontier is developing the first fully integrated
lithium mining-and-processing operation in Ontario with an aim is to become a significant
supplier of spodumene concentrates and battery-grade lithium
hydroxide to the growing electric vehicle and energy storage
markets across North America.
About the PAK Lithium Project
The PAK lithium project contains North
America's highest-grade lithium resource and is the largest
in Ontario by size. The project
encompasses close to 27,000 hectares and remains largely
unexplored; however, since 2013, the Company has delineated two
premium spodumene-bearing lithium deposits (PAK and Spark), located
2.3 kilometres apart. Exploration is continuing on the project
through two other spodumene- bearing discoveries: the Bolt
pegmatite (located between the PAK and Spark deposits), as well as
the Pennock pegmatite (25 kilometres northwest of PAK deposit
within the project claims). A 2023 Pre-Feasibility Study titled
""National Instrument 43-101 Technical Report PFS PAK Lithium
Project"" authored by BBA E&C Inc., delivered a 24- year
project life, at a post-tax NPV(8%) of US$1.74 billion and internal rate of return of
24.1% as per the press release disseminated on May 31, 2023 , and was filed on
www.sedarplus.ca.
Cautionary Note Regarding Forward-Looking Statements
This press release contains statements that constitute
"forward-statements." Such forward looking statements involve known
and unknown risks, uncertainties and other factors that may cause
the Company's actual results, performance or achievements, or
developments to differ materially from the anticipated results,
performance or achievements expressed or implied by such
forward-looking statements. Although the Company believes, in light
of the experience of its officers and directors, current conditions
and expected future developments and other factors that have been
considered appropriate that the expectations reflected in this
forward-looking information are reasonable, undue reliance should
not be placed on them because the Company can give no assurance
that they will prove to be correct. When used in this press
release, the words "estimate", "project", "belief", "anticipate",
"intend", "expect", "plan", "predict", "may" or "should" and the
negative of these words or such variations thereon or comparable
terminology are intended to identify forward-looking statements and
information. The forward-looking statements and information in this
press release include information relating to the prospectivity of
the Company's mineral properties, the mineralization and
development of the Company's mineral properties, the Company's
exploration program and other mining projects and prospects
thereof. Such statements and information reflect the current view
of the Company. Risks and uncertainties that may cause actual
results to differ materially from those contemplated in those
forward-looking statements and information. By their nature,
forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause our actual results,
performance or achievements, or other future events, to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements. The forward-looking information contained in this news
release represents the expectations of the Company as of the date
of this news release and, accordingly, is subject to change after
such date. Readers should not place undue importance on
forward-looking information and should not rely upon this
information as of any other date. The Company undertakes no
obligation to update these forward-looking statements in the event
that management's beliefs, estimates or opinions, or other factors,
should change.
Readers are cautioned that any such forward-looking statements
are not guarantees of future performance and those actual results
or developments may differ materially from those projected in the
forward-looking statements. For more information on the Company,
please review the Company's public filings available on SEDAR+ at
www.sedarplus.ca.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this news release.
SOURCE Frontier Lithium Inc.