Leading Edge Materials Corp (CVE:LEM) shares closed 17% higher on Wednesday after the company said it had submitted application documents to Swedish authorities to undertake drilling at the company’s 100%-owned Bergby lithium project.
Bergby lies in central Sweden, 25 kilometres north of the town of Gavle, and is secured by three exploration licences that cover a total of 1,903 hectares. The site is close to infrastructure, with major roads, rail and power supply passing immediately adjacent to the claim boundaries. The village of Norrsundet lies five kilometres east of the Bergby project, a deepwater port where, until recently, a major wood chip and pulp mill operated.
The news follows the company’s success in extending its exploitation licence at Woxna graphite mine in Sweden for 25 years more.
The proposed drilling will be the first program ever undertaken at the Bergby site and is anticipated to be completed during the first half of 2017. Permission has been requested to drill up to 40 diamond holes, comprising a combination of short holes to prospect beneath glacial soil cover and deeper holes to test the extent of the lithium mineralized pegmatite.
Leading Edge Materials has discovered both an extensive boulder field and located outcrops with high-grade lithium mineralization at Bergby. Fifteen samples taken from three outcrop areas returned lithium oxide averaging 1.71 per cent and ranging from 0.01 per cent to 4.65 per cent, and tantalum pentoxide averaging 133 parts per million and ranging from 16 parts per million to 803 parts per million. Samples included representative chip samples, composite samples and selective grab samples depending on outcrop quality, and were taken from three sites across an area of approximately 350 metres by 750 metres.
“The Bergby lithium project was a new discovery by Leading Edge Materials geologists in mid-2016, and we have moved quickly to be in a position to drill within less than 12 months. With high-grade lithium mineralization in both boulders and outcrop over a broad area, we are looking forward to the flow of drilling results,” said Blair Way, president and chief executive officer.
“The company continues to seek quality assets that align with our strategy to become a leading supplier of battery materials. With a fully permitted graphite mine, and both lithium and cobalt properties, our expanding asset base will allow Leading Edge Materials to play a pivotal role in the rapidly growing lithium-ion battery market,” he added.
Europe is playing a leading role in the transition to low-carbon energy generation from renewable sources and the efficient storage of that energy. Electric mobility (electric vehicles, hybrid vehicles and plug-in hybrid vehicles) and stationary electricity storage are dependent on high-purity graphite, lithium and cobalt, where Leading Edge Materials is an active European player. Lithium has a strong and expanding market, due to the essential role it plays in lithium-based batteries for the automotive, consumer product and stationary electrify storage industries. The high electrochemical potential of lithium results in the high power-to-weight ratio that is essential for efficient mobile batteries.
Samples submitted by Leading Edge Materials were analyzed by the ME-MS81 and Li-OG63 technique by ALS Chemex Ltd.’s laboratories in Pitea, Sweden, and Vancouver, Canada, where duplicates, repeats, blanks and known standards were inserted according to standard industry practice.
Leading Edge shares ended up 17.5% at C$0.67 on Wednesday.
Story by ProactiveInvestors