CBLT (TSXV: CBLT) announced that it signed a definitive agreement with Softrock Minerals (TSCV: SFT) for the purchase of 100% of the Shatford Lake lithium property in Manitoba, Canada.
The deal involves a cash payment of $25,000 and granting Softrock a net smelter return royalty of 2%, half of which can be re-purchased at any time for $1 million.
Shatford Lake is located in the Winnipeg River-Cat Lake pegmatite field in eastern Manitoba near the Ontario border, roughly five kilometres southwest of Sinomine Resource Group’s Tanco mine.
According to CBLT, the area has been previously explored for rare element pegmatites with historical mapping and drilling at Shatford Lake identifying multiple pegmatite dykes. Spodumene was noted in an assessment report and provincial geologists documented the presence of lithium mica.
In a press release, the miner said that its interest in Shatford Lake focuses on the site’s closeness to the Tanco mine, an LCT-type pegmatite that has produced cesium and tantalum, on and off, since the late 1920s. Lithium, beryllium and rubidium have also been previously produced at the mine.
CBLT also reported that third-party information shows that the Tanco pegmatite has dimensions of 820 metres by 1,600 metres and up to 100 metres thick, and over 100 minerals have been identified in it. Back in 1991, it was estimated that Tanco had lithium reserves of 7.3 million tonnes at 2.76% Li2O.
“We are excited to get into the field to begin work at this overlooked gem,” Peter M. Clausi, CBLT’s CEO, said in the media brief. “Research indicates that the Tanco deposit has no outcropping and was only discovered by historical drilling for tin. When you’re looking for elephants, hunt in elephant country.”
Clausi pointed out that future work at Shatford Lake will begin with ground-truthing of historical maps.
“Previously mapped pegmatites should be relocated, and detailed mineralogy described. Samples should be taken and analysed for lithium, in addition to other elements of interest such as cesium, tantalum, and rubidium. CBLT has the capital in treasury to carry out such a program,” the executive said.