Shares of Grid Metals (TSXV: GRDM; US-OTC: MSMGF) witnessed a 16% increase after the company released results from two out of 11 holes it has drilled on the Northwest Dyke at its Donner Lake lithium property in southeastern Manitoba.
The results, which came from the first drillholes to be conducted on the Northwest Dyke since 1955, included 13.8 metres grading 1.53% lithium oxide (Li2O) starting at 86 metres depth in drillhole GLDL22-01; and 9.4 metres grading 1.47% Li2O starting at 57 metres. The estimated true width of two drill holes reported is 7 to 8 metres, Grid Metals said.
According to the company, all holes at the Northwest Dyke intersected spodumene-bearing pegmatites over a strike length of 600 metres. The Dyke also remains open along strike in both directions and at depth.
“Today’s results are good, with nice grades. They become more significant if we continue to get similar grade and widths from our other holes,” the company’s CEO Robin Dunbar told The Northern Miner.
“A number of factors make this project special. The geological potential of the belt is very high in that it hosts the world-class Tanco Pegmatite, so we feel there are many more pegmatites to be found on our property,” he added.
The Tanco Mine, which has produced tantalum and cesium products since 1968, is located about 35 km away from the property. The mine was acquired by Sinomine Resources, a Chinese company, in 2019.
“The Tanco Mine is now producing spodumene so for all the talk about Quebec and Thunder Bay lithium, it’s happening now in Manitoba,” said Dunbar.
Located about 180 km from Winnipeg, the Donner Lake property contains multiple lithium-cesium-tantalum (LCT)- type pegmatites, including the Main Dyke, which was drill tested for over a 1 km strike length, the company says.
Grid Metals owns 75% of the Donner Lake property while Toronto-based Lithium Royalty owns the rest of the shares. The latter is also funding 25% of the current exploration program, the results of which will be used to establish a resource estimate this year.
The resource estimate will be based on both the Northwest and Main dykes at the property, the CEO said. “After that, a preliminary economic assessment, but its too early at this stage to tell whether we can get that done this year,” he added.
The company’s other goal is to finish sampling over the whole property, which the CEO says has proven “very effective” at outlining pegmatites that have limited outcrop.
“We are hoping there is a big one on the property,” said Dunbar.
At presstime in Toronto, Grid Metals was trading at 21¢ per share, up 3¢, within a 52-week trading range of 8.5¢ and 27¢. The company has 106.4 million common shares outstanding for a market cap of $22.3 million.
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