The Bourier project is potentially a new lithium field in an established lithium district. It is owned by Critical Elements Corporation, which has entered into an agreement with Lomiko Metals whereby Lomiko may acquire up to 70% of the property by funding exploration activities and other consideration. Details of the Agreement are available here.

The Bourier project consists of 203 claims for a total ground position of 10,252.20 hectares (102.52 km2) in a region of Quebec that boasts other lithium deposits and known lithium mineralization, as shown in the maps and table below. The lithium pegmatites tend to occur in swarms in the volcano-sedimentary units, and the Bourier property covers a large part of this regional volcano-sedimentary unit, which also hosts Nemaska Lithium’s Whabouchi deposit and Critical Elements’ Lemare showing.

An NI 43-101 compliant Technical Report was performed by InnovExplo in 2012 on the Bourier Property for Monarques Resources Inc. The report concluded that drilling and analysis conducted at Bourier at that time yielded results that were sufficient to recommend additional exploration of the property.

Bourier Lithium Property

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Property Location and Details

Bourier is located in the northeastern part of the Superior geological province, and more specifically in the northeastern part of the Lac des Montagnes Formation. The Lac des Montagnes volcano-sedimentary belt is a sequence of aluminous metasediments and amphibolites containing basalts and ultramafic sills.

The Bourier property is adjacent and northeast to the Lemare Lithium property, wholly owned by Critical Elements. Exploration and drilling at Lemare conducted between 2016 and 2018 yielded results that included 41.5 m at 1.71% lithium oxide (Li2O), including 15 m at 2.18% Li2O and 6 m at 3.6% Li2O.
Initial exploration at Lemare was undertaken in 2012 by Monarques Resources Inc. which discovered a “granite pegmatite dyke containing a considerable amount of spodumene.” The pegmatite ranges in apparent thickness from 4.8 to 14.2 metres and was followed for close to 200 metres in length on surface. Further exploration will confirm whether similar mineralization exists at the Bourier property.

Geology and Mineralization

The area in which Bourier is situated is characterized by metasedimentary rocks, mainly biotite paragneiss containing minerals typical of regional amphibolite metamorphic facies, and amphibole–plagioclase gneisses (amphibolites) of volcanic origin (Valiquette,1975). The northern boundary of the property is marked by intrusive pink granite. The metasedimentary rocks in the centre of the property are intruded by mafic and ultramafic rocks, granites, pegmatites, and late diabase dykes, the youngest rocks of the area. The amphibolites contain numerous lenses of ultramafic tremolite schist that follow the foliation of these amphibolites.

The biotite paragneiss crops out mainly in the low-lying ground. The paragneiss incorporates sills of mafic rock (amphibolites) and ultramafic rocks, metavolcanic layers, granite stocks and dykes, and pegmatite masses. These rocks dip on average 35° to the southwest (Valiquette 1975). The ultramafic rock in outcrop is mainly serpentinite, although narrow sills of ultramafic amphibole rocks are also present. These rocks may be crosscut by pegmatite dykes. Several granite intrusions cut the metasedimentary rocks. In some areas the granite intrudes the biotite gneisses. This granite is usually massive with very weak gneissic texture. The pegmatite dykes or sills cross-cut all the other rocks with the exception of the diabase.

The pegmatites occur as two (2) sorts: pink, associated with oligoclase gneisses and granite, and white, associated with metasedimentary rocks. White pegmatites are generally fine to coarse grained containing muscovite, almandine garnet, black tourmaline (schorl), magnetite and biotite. Muscovite grains can be up to a few centimetres in size. The pink pegmatite ranges from fine to a very coarse-grained variety comprising very large microcline crystals reaching up to 30 cm long. Besides quartz, microcline and plagioclase, the pegmatites also contain magnetite as large crystals up to 15 cm in length. Accessory minerals are apatite and garnet with trace amounts of spodumene.
Although there has been little exploration for lithium undertaken at Bourier so far, based on other lithium deposits around the world, it is a common occurrence for pegmatites to exist in “swarms.”

Key Terms of Lomiko’s Agreement with Critical Elements

GRANT OF FIRST OPTION

Critical Elements grants to Lomiko the exclusive right and option to acquire, on or before December 31, 2022, an initial 49% Earned Interest in the Bourier Property by issuing to Critical Elements an aggregate of 5,000,000 common shares of Lomiko, by making cash payment to Critical Elements totaling $50,000 and by incurring or funding Exploration Expenditures for a total amount of $1,300,000 on the Property, as follows:

  • making a cash payment to Critical Elements of $25,000 within a delay of five (5) days following the execution of the Agreement (non-refundable);
  • making a cash payment to Critical Elements of $25,000 within a delay of five (5) days following the receipt of the required approvals from the Exchange;
  • issuing to Critical Elements 5,000,000 common shares immediately following the receipt of the required approvals from the Exchange; and
  • incurring or funding Exploration Expenditures aggregating not less than $1,300,000 on the Bourier Property, of which an amount of $550,000 must be incurred or funded before December 31, 2021 and an amount of $750,000 before December 31, 2022.

GRANT OF SECOND OPTION

Subject to Lomiko having exercised the First Option, Critical Elements will also grant to Lomiko the exclusive right and option to increase its undivided interest in and to the Bourier Property from 49% to 70% by making a cash payment to Critical Elements of $250,000, by issuing to Critical Elements an aggregate of 2,500,000 common shares of Lomiko, by incurring or funding additional Exploration Expenditures for an amount of $2,000,000 and by delivering a resource prepared in compliance with NI 43-101 standards on the Bourier Property prepared by a Qualified Person independent of Lomiko and Critical Elements, for a period commencing on the delivery of the First Option Exercise Notice and ending December 31, 2023, in summary as follows:

  • making a cash payment to Critical Elements an amount of $250,000 and issuing 2,500,000 common shares of Lomiko, on or before the date of delivery of the First Option Exercise Notice;
  • incurring or funding additional Exploration Expenditures for an amount of $2,000,000 on or before December 31, 2023; and
  • delivering the Resource Estimate to Critical Elements on or before December 31, 2023.

MILESTONE PAYMENTS

Subject to Lomiko’s right to withdraw from and terminate the First Option, Lomiko agrees to pay the following milestones payments to Critical Elements, payable at any time following the exercise of the First Option upon the occurrence of the following:

  • On the estimation of a drilled defined resource (NI 43-101 compliant) of 5,000,000 tonnes at a cut-off grade of 0.6% Li2O (all categories) a payment of $750,000, payable in cash or in common shares of Lomiko at the sole discretion of Lomiko;
  • On the estimation of a drilled defined resource (NI 43-101 compliant) of 10,000,000 tonnes at a cut-off grade of 0.6% Li2O (all categories) a payment of $1,000,000, payable in cash or in common shares of Lomiko at the sole discretion of Lomiko;
  • On the estimation of a drilled defined resource (Ni 43-101 compliant) of 15,000,000 tonnes at a cut-off grade of 0.6% Li2O (all categories) a payment of $1,500,000, payable in cash or in common shares of Lomiko at the sole discretion of Lomiko; and
  • On the estimation of a drilled defined resource (NI 43-101 compliant) of 20,000,000 tonnes at a cut-off grade of 0.6% Li2O (all categories) a payment of $2,000,000, payable in cash or in common shares of Lomiko at the sole discretion of Lomiko.

ROYALTY

Following the exercise of the First Option by Lomiko, and in addition to the amounts paid, common shares issued and Exploration Expenditures incurred or funded by Lomiko under the First Option and thereafter under the Second Option, as applicable, Critical Elements shall receive a royalty equal to 2% net smelter returns resulting from the extraction and production of any Minerals on the Bourier Property. The Royalty includes the right of Lomiko to purchase a portion thereof (1%) by paying to Critical Elements a total cash amount of $2,000,000.