MAX Power Mining Corp. (CSE: MAXX; OTC: MAXXF; FSE: 89N) has positioned itself as a leading landowner in the emerging Raglan Lithium District of Northern Quebec, following its recent acquisition of 802 claims or 336 square kilometres.
The acquisition makes the company the second-largest lithium-focused landowner in the area because it operates two mines and a deep-sea port.
The company announced the acquisition at Reglan South on Monday which is approximately 10 kilometres south of KoBold Metals’ major battery metals project. The company now owns 558 square kilometres in the broader Reglan district.
MAX Power’s land package at Raglan South is strategically located within the metavolcanic Peltier Belt, which is characterized by tonalitic and felsic intrusive host rocks. This geological setting is highly favorable for lithium exploration. Tonalitic and felsic intrusive rocks have undergone magmatic fractionation, resulting in their enrichment in large ion lithophile elements (LILE) such as rubidium (Rb), caesium (Cs), and lithium (Li). Rubidium and caesium have a known positive correlation with lithium.
This suggests the potential for significant lithium mineralization within the host rocks. MAX Power’s acquisition of the land at Raglan South positions the company to explore and evaluate this favorable geology for potential lithium deposits.
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Under the agreement, MAX Power will issue 1 million common shares of the company and a cash payment of approximately $216,000.
MAX Power has also agreed to grant a 1 per cent net smelter royalty (NSR) to one of the owners Shawn Ryan.
As part of the agreement, a one-time bonus payment of 1,000,000 shares will be awarded if a drill hole in the 2023 program intersects a core length of at least 100 meters with a grade of at least 2.0 per cent Li2O (lithium oxide).
Additionally, a separate drill hole in the 2023 program at Raglan South is eligible for a one-time bonus payment of 500,000 shares if it intersects a core length of at least 50 meters with a grade of at least 1.5 per cent Li2O.
According to senior geologist and exploration manager at MAX Power Peter Lauder the area is situated directly below the Cape Smith Nickel Belt, which is home to a world-class nickel mine and extensive areas favourable for various nickel deposits, as well as copper, cobalt and gold.
Raglan South in the emerging Lithium Camp exhibits the right characteristics for potential lithium mineralization containing spodumene.
“The Raglan District features one of the most successful and well-funded privately-owned mining and exploration companies in the world in KoBold Metals, who are actively drilling on their land package,” MAX Power CEO Rav Mlait said.
Several companies making strides in lithium mining in Northern Quebec
As the demand for lithium continues to rise due to its crucial role in battery technology, several companies are making strides in lithium mining in Northern Quebec.
Nemaska Lithium Inc. (TSX: NMX) (OTC: NMKEF) (FSE: N0T), which is part-owned by the Quebec government, is planning to initiate operations despite the absence of active lithium mines in the region.
Another key player in the region is Sayona Mining (ASX: SYA) (OTC: DMNXF) (FSE: DML). Sayona Mining owns a 75 per cent stake in Sayona Quebec, a joint venture with Piedmont Lithium, which is involved in the North American Lithium Project.
Piedmont Lithium (ASX: PLL) (NASDAQ: PLL) (FSE: PL4) is also a significant contributor to the lithium mining industry in Northern Quebec, holding a 25 per cent stake in the joint venture Sayona Quebec.
Arbor Metals (TSXV: ABR) (OTC: ARRRF) (FSE: 432), a Vancouver-based company, is developing lithium mining projects in Quebec, further contributing to the region’s lithium production.
