Many Peaks Gold latest ASX-lister to target Canadian lithium

On Monday, Many Peaks Gold (ASX:MPG) revealed it has taken ownership of  six mining licences from the Canadian government,which now form the company’s Aska Lithium Project in Newfoundland, a project sized at 151sq.km.

The company notes its Aska project overlies “the same terrane with similar age as the major lithium deposits of the…Kings Mountain Lithium Mine.” 

The Kings Mountain Lithium Mine is one of the largest in the US, but is currently dormant. US-listed owners Albermarle Corporation (NYSE:ALB) are looking at re-commencing operations. 

Canadian based Sans Peur Exploration Services (SPE) was given a 2.5% royalty over the project to conduct a pegmatite mapping study. MPG will pay $1.5m to SPE to reduce that royalty from 2.5% to 0.5%. 

Ancient formation pre-dates Atlantic ocean 

MPG further cites multiple pegmatite fields present at the location, but notes “exploration for lithium is in its infancy.” 

““The Avalonia Terrane hosting the Aska Project also hosts several high-grade lithium deposits along its extensions into Ireland and North Carolina, where the same age of granites and their related pegmatites formed prior to the opening of the Atlantic Ocean,” MPG EC Travis Schwertfeger said. 

“MPG believes this corridor in Newfoundland represents an emerging district for highly demanded lithium oxide and lithium carbonate products strategically positioned with access to both European and North American markets.”

What is present at Aska? 

The key appeal of the Aska project is a series of known spodumene pegmatites present on-site. Hard rock lithium assays have not been completed, meaning there is no indication yet of grades. 

MPG will move ahead with exploration across the licences comprising its lithium project to better map and define the pegmatite field(s) on-site, which the company believes is a “goldilocks zone” for lithium mineralisation. 

Spodumene pegmatites, the holy grail for pegmatite lithium mineralisation, are believed to be present. 

Lake sediment testwork (think ancient lakes) have returned positive hits for caesium and tantalum which are typically coincident with lithium mineralisation. 

Want to know more? 

Free company data available on Market Index provides potential investors a number of early-stage considerations to make about MPG including but not limited to: 

• Share price of 36c* 

• Market cap of $12.2m* 

• One year returns up 80%

• Year to date returns up 63.6% 

• Ranked 653 of 943 materials sector companies 

• Average 4 week volume of 170,362 shares 

• Company held $4.3m in cash at end of Sep quarter 

• It spent $112,000 in opex over the same period 

• It spent $172,000 in investing activities 

• It has not raised capital since 

• Executive Chairman’s salary has been raised to A$264,000/y

*As at 1115 AEST Monday 23 January 2023 

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