Let’s start with an introduction to Grid Metals, its key projects, and its team.
We have two key projects. Both have the same footprint in SE Manitoba. Donner is a lithium project and MM is a copper nickel project. Donner has a Ni 43-101 resource and has near term production potential, while the MM copper nickel project we have just announced an updated NI 43-101 resource.
Our technical team is led by Dave Peck P. Geo who is extremely experienced in nickel copper PGM exploration internationally. He heads up the team in Winnipeg. Brandon Smith is head of our corporate development and Arsalan Talebzadeh P. Eng heads up our project team.
In short, we are looking to get Donner Lithium in a position to produce when lithium prices rebound. For the MM Project we want to expand that resource to the 80 -100Mt range so that it becomes a must develop resource.
Interestingly, Grid is leasing the True North Mill – previously a gold mill, to produce saleable lithium concentrate from the company’s Donner Property. Can you talk us through that decision and what it means in terms of project advancement?
We worked out a deal with the owners of the 1911 Gold Mill (which is in excellent shape) to lease the mill and convert it to produce lithium spodumene concentrate. By using an existing mill and tailings facility, the timeline to permitting that mill will be much shorter than building a greenfields facility. Additionally, the capital cost of converting the gold mill to process lithium will be much lower than building a new mill. Hence, the idea makes sense on multiple fronts.
We also have a MOU with the Tanco Mine which has capacity to process ore as well at their mill. So, we will see how that all plays out.
Looking at your Falcon West lithium project, exploration drilling has commenced, can you talk us through the drill programme and what you’re hoping to find?
We announced the results at the end of April, and generally view the first pass drill programme as a success. We found some very-high grade spodumene near surface within what appears to be a highly fractionated complex pegmatite, more akin to the producing Tanco mine than what is seen in Ontario and Quebec. More work needs to be done for sure, but there is a lot of potential and we effectively control the entire belt.
The lithium markets have had a volatile time over the past 12 months, how does Grid see the market outlook moving forward?
We are not lithium market experts, but in general, the demand for lithium is universally expected to grow, which is a positive. In North America in particular there will be delays in permitting new lithium projects and the capital costs will be very high. So, we look at the market in the next five years as being one of opportunity. There will invariably be a period where the demand surges and the supply doesn’t respond fast enough. That will mean higher prices and a good opportunity for first movers.
Do you think that lithium-based battery chemistries will continue to dominate the electric vehicle battery market?
Every battery configuration that will be used predominantly in the next 10 years+ will use lithium.
What about your copper/nickel MM project?
We have been working on this asset quietly in the background. We just announced a significant new resource for the project. Importantly, we have consolidated the Bird River Belt and have a number of other deposits that can be developed as well. There is demand for North America domiciled copper nickel projects like MM.
We want to grow the MM Project to over 80Mt which we think is the size we need to develop an appealing project. The MM Project is right next to Donner Lithium so both projects will benefit from efficiencies in infrastructure, exploration, and permitting etc. Southeastern Manitoba remains our focus.
