Lithium fever in James Bay: Oceana sets foot next to Winsome and Patriot Battery Metals

Oceana Lithium (ASX: OCN) has secured the option to purchase 100% of the Monaro Lithium Project, located in one of the world’s most prolific lithium provinces – the James Bay area in Quebec, Canada.

The project sits next to several household lithium names including:

• Allkem (ASX: AKE) – James Bay Deposit

• Patriot Battery Metals (ASX: PMT) – Corvette

• Winsome Resources (ASX: WR1) – Adina and Cancet 

• Rio Tinto (ASX: RIO) – Midland

• Loyal Lithium (ASX:  LLI) – Hidden Lake

The rising reputation of James Bay

“Recent outstanding exploration results announced by Patriot Battery Metals, Winsome Resources and Allkem, in similar geological settings in James Bay demonstrate the potential for additional world class lithium discoveries in the district,” says Oceana Chairman, Gino Vitale. 

“The area has also attracted the attention of Rio Tinto, which recently entered an option agreement under which it may acquire a 70% interest in a number of lithium exploration properties, including the Galinée property that is proximal to Monaro, by spending up to C$65m.”

Oceana Lithium says the project shares the same geological setting as Winsome’s recent Adina lithium discovery, which is located 30 km to the south-east. The 104 km² project area has historically been of interest for its gold potential but never systematically explored for lithium.

An oversubscribed placement

Firm commitments were received from new institutions and existing shareholders in an oversubscribed placement to raise approximately $4.1 million at 32 cents per share – An 8% discount to its 14-day volume weighted average share price.

Oceana Lithium shares opened 6.4% higher to 41.5 cents on Wednesday, likely reflecting the optimism around the high-profile acquisition.

Next steps: Progressing three projects

"The acquisition of the highly prospective Monaro Lithium Project is a clear opportunity to create additional value for Oceana investors and complements our existing portfolio in Brazil and Australia," said Vitale.

Last month, Oceana intercepted 'thick pegmatites' as part of a maiden scout drilling campaign at its Solonopole Project in Brazil. The drilling campaign is following up on high-grade near surface spodumene assays of up to 3.61% Li₂. Assays for the first holes are expected in the next 6-8 weeks.

The company also operates the early-stage Napperby Lithium Project in the Northern Territory, Australia. The 1,160 km² tenement package features 'numerous prospective pegmatite outcrops pending field investigation.'

As for the newly acquired Monaro Project, Oceana says its first priority during its option period is to “map and sample the potential lithium-bearing pegmatites.” 

“This program will include a fast-tracking strategy that will enable early discovery pegmatites with economic lithium potential to be drilled out as soon as possible,” the company said in a statement.

Oceana Lithium 6-month price chart (Source: Market Index)

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