Embarking on the new frontier.

The PAK Lithium Project encompasses 6,976 hectares located 175 kilometers north of Red Lake in northwestern Ontario.

Aerial drone footage of PAK Lithium Project, captured February 2017

PAK Lithium Project

The PAK Lithium Project encompasses 6,976 hectares located 175 kilometers north of Red Lake in northwestern Ontario. First discovered by Ontario Government geologists in the late 1990’s, the property includes the Pakeagama Lake granitic pegmatite which has highly anomalous values of lithium, cesium, tantalum, and rubidium. The PAK deposit is a lithium-cesium-tantalum (LCT) type pegmatite containing high-purity, technical-grade spodumene (below 0.1% iron oxide). The deposit is exposed at surface and has a known strike length of 500 meters with an estimated true width varying from 14 meters to 125 meters with a sub-vertical orientation of the pegmatite. The deposit remains open to depth and along strike to the northwest and southeast.

Updated 2016 Mineral Resource Estimate

In March 2016, Frontier Lithium published an updated resource estimate on the PAK Lithium Project. The current Canadian National Instrument 43-101 compliant mineral resource estimate shows a Measured and Indicated resource of 7.89 million tonnes of 1.73 percent lithium oxide equivalent (Li2O Eq.) and an Inferred resource of 295,600 tonnes of 1.35 percent Li2O Eq.

Technical Report

Investment Highlights

  • The PAK deposit's rare low-iron spodumene provides the potential low cost entry into the lithium market.
  • Tight share structure with management ownership exceeding over 30% of the company.
  • 8.2 million tonnes of what is the highest-grade lithium deposit in North America. (March 2016 Mineral Resource Estimate)
  • 300 tonne bulk sampling program underway on high-grade lithium zone.
  • Pre-feasibility study for a lithium mine with by-product of tantalum concentrates is targeted for completion in the spring of 2017.
  • Potential for near-term production of technical grade lithium for the ceramics and glass market and the future possibility to participate in the burgeoning lithium battery market.
  • Expenditures of CAD $4 million on the project to date resulting in extremely low lithium acquisition costs of exploration at $21.66/contained Li2O eq. tonne.

Staged Strategy for Growth

Frontier Lithium is taking a very systematic, staged approach to advancing the PAK Lithium Project into the lithium market by assessment of producing lithium products through the following sequence:

  • Direct Shipping Ore to generate revenue during and after the construction of a scalable concentrate processing facility; then
  • Firstly, develop a surface lithium mining operation by producing a technical grade lithium concentrate with tantalum byproduct utilizing proven processing technologies.
  • Possible future production of battery grade lithium compounds for the battery market.

UIZ: Stellar High Grade Zone at Surface

The updated 2016 resource estimate included results from exploration work on the high-grade Upper Intermediate Zone (UIZ) of the deposit. Results from the 2015 channel sampling conducted on UIZ included up to 28 meters grading 4.41 percent lithium oxide (Li2O). All channels returned consistent grades between 4.25 percent and 4.67 percent lithium oxide over widths no less than 6.2 meters.

The high grade zone indicates PAK’s potential for near-term production of technical grade lithium product for the ceramics and glass market as it is potentially amenable for Direct Shipping Ore (DSO). End-users in this lithium market segment require very low impurities (mainly iron levels) in order to maintain chemical stability, consistency, and avoid discoloration of glass, glazes, and frits. Not only does this low impurity zone have some of the highest grades of any known lithium resource, it’s very wide and amenable to open pit mining methods.

Bulk Sampling Program Underway

In 2015, Houston Lake initiated a 300-tonne bulk sampling program targeting the high-grade Upper Intermediate Zone (UIZ) to assess the suitability of the high-grade zone for the production of DSO, which does not require concentration (flotation or gravity separation). The sale of DSO as a first product from PAK could provide Frontier Lithium with a source of useful revenue at low capital cost during the feasibility-stage for a concentrator facility.

Testing of the bulk sampling program is slated for Fall 2016 and the results will influence a part of the pre-feasibility study now underway. Local infrastructure deficiencies are being addressed through a road upgrading study focused on improving access to the project via a winter road that is within 4 kilometers of the deposit. Environmental baseline, and metallurgical studies are also in-progress and will be included in the final pre-feasibility study targeted for completion by the end of March 2017.

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