The Mavis Lake Project
The Mavis Lake project with the Fairservice Lithium properties consist of contiguous mining claims totalling 2,544 ha and 6 contiguous mining leases (totalling 88.4 ha within the Brownridge Township, Ontario. The Project is located approximately 19 km east-northeast of Dryden in northwestern Ontario.
On June 22, 2016, the Company announced that Pioneer Resources (ASX: PIO) had entered into an option agreement (the “Option Agreement”) to advance an exploration program on the Company’s Mavis Lake lithium project (the “Project”) (see Company news releases dated March 14, 2016 and April 20, 2016). Under the terms of the Option Agreement, Pioneer Resources can earn up to an 80% interest in ILC’s Mavis Lake lithium project.
On August 29, 2018 the Company concluded an agreement with Pioneer Resources with the effect that Pioneer Resources is deemed to have achieved the conditions for the first earn-in under the Mavis Lake joint venture agreement by issuing 2,500,000 shares to the Company and as a result now owns 51% of Mavis Lake, with the Company retaining 49%. In addition, the Company will receive a 1.5% NSR on Mavis Lake. Pioneer Resources retains, if they choose, a second option whereby it can earn an additional 29% by spending $8.5 million within seven years (total $10 million over ten years).
The Mavis Lake Project is situated 19 kilometres east of the town of Dryden, Ontario. The Project is ideally situated in close vicinity to the Trans-Canada highway and rail transportation arteries linking larger cities such as Thunder Bay, Ontario, to the southeast and Winnipeg, Manitoba, to the west.
The property consists of the Fairservice prospect that includes the Pegmatite 6 target, and the Mavis prospect which includes several pegmatite targets.
The Fairservice prospect had seen several periods of exploration since its discovery.
Pegmatite 6 Target
Pioneer Resources had defined a new target through drilling at Fairservice, Pegmatite 6.
Plan View of the Pioneer Resources 2018 drill hole collar locations and hole traces summarising lithium mineralisation at the Fairservice Pegmatite 6 Prospect. The plan shows the north-dipping pegmatite where it outcrops at surface (425m RL) and the intersected pegmatite (dashed pink) at approximately 100m below surface (i.e. 425m R.L.)(Pioneer Resources).**
East-West Long Section through the Fairservice Pegmatite 6 Prospect. The section shows 2018 drilling intersections in red with annotated grades. Mineralisation was intersected between 100 and 140m (approximately 325m +- 30mRL) below surface (Pioneer Resources).**
Staging for a drilling campaign in 2018 at Mavis Lake (Pioneer Resources).
|Fairservice Pegmatite 6 Prospect: Significant Drilling intersections**|
* All reported widths are drill hole intersection widths and have not been converted to true width. True width is unknown at this time.
** See Company news release dated April 9, 2018.