Grid Metals Corp. (TSXV: GRDM | OTCQB: MSMGF) has announced a maiden mineral resource estimate (MRE) on its 75% owned Donner Lake lithium project with an inferred resource of 6.81Mt grading 1.39% Li2O.
In addition, the company has signed a binding lease agreement with 1911 Gold Corporation to use its nearby True North mill to produce lithium spodumene concentrate. The lease of the True North mill, an existing processing facility, will be reconfigured to enable lithium spodumene production.
“We believe the resource and mill lease announced today are essential building blocks for the development of a lithium production business focused in southeastern Manitoba,” commented Grid Metals CEO, Robin Dunbar.
“Our exploration team has done a great job delineating a significant high-grade initial resource in eighteen months at Donner Lake. We now have a resource at Donner Lake and two potential low capital cost processing options within trucking distance.”
True North mill is a permitted gold mill utilizing a flotation circuit with nominal annual capacity of 475,000t. The mill is leased for up to five years plus a two-year cancellation period. The True North tailings facility is also permitted (with an additional permit required to reconfigure mill and tailings to process lithium).
Donner Lake’s MRE consists of 2.10Mt grading 1.42% Li2O of open pit resources with a cut-off grade of 0.3% Li2O and 4.71Mt grading 1.37% Li2O of below pit underground resources with a cut-off grade of 0.5% Li2O. Both come from the Main Dyke and Northwest Dyke.
The mineral resources are hosted by steeply dipping pegmatite dykes that are exposed at surface and display consistent widths, spodumene content, and lithium grade. Donner Lake remains open for expansion, and ongoing property exploration is focused on generating new exploration targets.
For further information, please visit: www.gridmetalscorp.com
