Microcap explorer Pure Resources picks up 160km2 of land in busy Canadian lithium district

Microcap explorer Pure Resources (ASX:PR1), which listed on the ASX in March this year, has today confirmed its receipt of the landholding rights to 160km2 of acreage prospective for lithium in the Superior Province region of Quebec, Canada. 

Its existing projects include Killarney, a polymetals project in northern Western Australia. In fact, all of Pure's other projects are located in WA, making this its maiden voyage into North America.

Shares have jumped 34% in the first hour of trade. Pure subsidiary PR1 (Canada) is the actual holder of the approvals to explore 319 claims comprising today’s acquisition. 

Pure’s new digs sits 65km northeast of Patriot Battery Metals’ Corvette project, a Canadian company with a market cap of $680m.

Lucrative opportunity, if conditions are right 

Looking back to North America, a number of greenstone belt formations define the overall geology of the Canadian Superior Province region, with James Bay to the west the site of a hydroelectric facility generating power for an eastward inland grid already powering a number of mines in the region. 

Pegmatite mineralisation, Pure states, is common in the area. 

Pure has its eyes set on the 70km long LaForge Greenstone Belt for drilltesting and other works; worth noting is the company’s permittage does not cover the entirety of this formation. The LaForge belt, Pure notes, is highly responsive to magnetic anomaly imaging tests. 

Pure, ultimately, is hopeful it can prove geological particulars at its new acreage replicates that of Patriot’s Corvette discovery. 

Pure on a global hunt for projects: Management 

“The Laforge Greenstone Belt was of particular interest as it was recognised that the geology is analogous to lithium belts in Canada and globally,” Pure chief Patric Glovac said. 

“We believe these claims, whilst greenfields, are situated in the same geological province and exhibit analogous rock types, structural setting and geophysical properties as observed at the Corvette Lithium Trend 65 km to the southwest.”

Glovac noted the company will get straight to work with aerial reconnaissance mapping of the acreage as well as on-the-ground rock and soil sampling “in the coming week;” a company called Apex Geoscience will be tasked with conducting helicopter flyovers. 

Fieldworkers will be able to access areas of interest using existing roads attached to the James Bay hydroelectric project.

Pure's six month charts show the impact of today's news; and also a company that struggles with illiquidity