Having signed an exclusive option agreement, Riversgold Ltd (ASX:RGL) is now set to acquire 100% of the Abigail Lithium Project, which comprises seven lithium-prospective projects in the James Bay district in Quebec, Canada.
The strategic acquisition gives RGL a foothold between Critical Element Ltd’s Rose lithium deposit with a probable reserve of 26.3 million tonnes at 0.87% Li2O and Nemaska Lithium Ltd’s Whabouchi deposit with 36.6 million tonnes at 1.3% Li2O.
Location of RGL’s proposed Abigail Lithium Project (in red) in relation to the other major deposits in the lithium-rich James Bay region.
RGL will pay an exclusivity fee to undertake technical and corporate due diligence activities for a period of 120 days comprising:
- C$75,000 in cash;
- an exploration program with an estimated cost of C$200,000; and
- 16.4 million Riversgold fully paid ordinary shares at a deemed issue price of $0.014 per share
Boots on the ground in just two weeks
The company is wasting no time in putting boots on the ground at the Abigail project and expects to start a field exploration program in September 2023. This will be carried out by the same exploration team that carried out the initial LCT targeting program in 2016 and 2017.
The James Bay region is prolific for lithium projects and includes:
- James Bay Deposit operated by Allkem Ltd with a probable ore reserve of 37.2 million tonnes at 1.3% Li2O.
- Corvette, CV5 owned by Patriot Battery Metals Ltd with an inferred mineral resource 109.2 million tonnes at 1.42% Li2O.
- Whabouchi operated by Nemaska Lithium Inc. with a reserve of 36.6 million tonnes at 1.3% Li2O reported in accordance with NI 43-101 comprising proven reserves of 19.0 million tonnes at 1.41% Li2O and probable reserves of 17.6 million tonnes at 1.19%.
- Abitibi Lithium Hub operated by Sayona Mining Ltd and Piedmont Lithium (NASDAQ:PLL) Inc with a resource of 119.1 million tonnes at 1.05% Li2O from the North America Lithium (NAL) and Authier Projects comprising 7.5 million tonnes measured, 80.3 million tonnes indicated and 31.2 million tonnes inferred resources.
- Rose Lithium Project operated by Critical Elements Lithium Corp with a probable ore reserve of 26.3 million tonnes at 0.87% Li2O.
- Moblan operated by Sayona Mining Ltd and SOQUEM Inc with an ore reserve of 10.7 million tonnes at 1.4% Li2O comprising a proven ore reserve of 4.6 million tonnes at 1.57% Li2O and a probable reserve of 6.1 million tonnes at 1.27% Li2O.
Location of the seven projects forming the Abigail Lithium Project being acquired by RGL (in red) and their proximity to neighbouring projects, including the Rupert A and Rupert B prospects located in the centre of the Project tenure. Powerlines marked in red and major roads in dark grey.
The Abigail Lithium Project has excellent proximity to these significant lithium deposits, which support the prospectivity for future lithium discoveries in the region.
RGL chairman David Lenigas said: “The Abigail Lithium Project in Quebec is blessed with year-round access for exploration and the current exploration program, planned to commence in two weeks, will be managed by the same exploration team who identified the project’s potential lithium anomalies back in 2016/17.”
About the Abigail Lithium Project
Riversgold is determined to identify potential lithium-rich pegmatites in granites, such as the Rose Lithium deposit, or potential lithium-rich pegmatites within greenstones, such as the Whabouchi deposit.
Due diligence exploration activities will be conducted by Canadian exploration team, Silverwater Exploration Services, which has current successful lithium experience in the region.
The exploration strategy is similar to that successfully applied by Li-FT Power on their nearby Rupert Project. LIFT is drilling their Rupert A and B prospects, which are in the centre of RGL’s proposed tenure package.
Li-FT is also successfully targeting lithium-bearing pegmatites buried below till cover where the opportunity exists to identify non-outcropping pegmatites identified through modern exploration techniques including geophysics and remapping of surface geology.
The Abigail Lithium Project covers an expansive 312 square kilometres through 602 staked claims, organised in seven distinct blocks. Of notable interest is the road accessibility to 81% of the total project area, ensuring streamlined operations and logistics.
The West Project area can be accessed via the James Bay sealed road, also known as State Route 109. Meanwhile, the East Project area is reachable via the Hydro-Quebec Powerline Track, a crucial road that bisects the centre of both these project areas.
This connectivity is of strategic importance in a sector where ease of access often translates to operational efficiency.
Additionally, the project benefits from its proximity to the Nemaska airport, a mere seven kilometres west. The airport offers weekday flights to Montréal with an approximate flight time of two-and-a-half hours, enhancing the logistical options for the project's stakeholders.
The Abigail Lithium Project's road access and nearby airport services are vital components that stand to strengthen its competitive positioning.
Abigail’s geology
The underlying geology primarily consists of syntectonic tonalitic gneisses, foliated granites with tonalitic enclaves and porphyritic granodiorite units. Additional geological elements include minor late-stage gabbro and diorite intrusives that intersect the entire property landscape.
Riversgold aims to assess the outcropping pegmatites and explore potential pegmatites concealed under shallow glacial till cover.
Exploratory work on the site has been minimal to date. Limited on-ground exploration activities, including mapping and rock outcrop and till sampling, were conducted in 2016 and 2017 by Evolving Gold Corp.
The complex geological features, coupled with the project's underexplored status, present a fertile ground for further investigation. Riversgold's focus on known and potential pegmatites adds another layer of scientific and commercial interest to this promising venture.
What to expect
RGL will undertake a due diligence exploration program in September 2023 with the aim of verifying previously identified anomalies and to ground truth and map the relevant geological interpretation from the
Silverwater Exploration Services has budgeted C$200,000 for the exploration program and results will be released to the market as they become available.
RGL will conduct a more comprehensive greenfields generation program in the early 2024 field season if the results of the 2023 program and completion of the acquisition are successful.
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