QUEBEC - Shares of Winsome Resources Ltd (ASX:WR1) soared to $1.25 on Monday, following the company's announcement of a significant maiden Mineral Resource Estimate (MRE) for their Adina Lithium Project in Quebec. The maiden MRE has revealed an impressive inferred lithium deposit, particularly rich in spodumene, a mineral crucial for the North American electric vehicle (EV) supply chain.
The discovery outperformed the projections made by Canaccord in July, which estimated 40 million tonnes at 1.2% lithium. Instead, the Adina project has unveiled a resource of 59 million tonnes at 1.12% lithium, positioning Winsome Resources as a leading player in North America's hard rock lithium market.
Managing Director Chris Evans hailed the announcement as a landmark achievement for the company and indicated that further updates on the resource are expected by early 2024. With approximately $69 million available at the end of October, Evans is optimistic about an upswing in lithium prices starting from the second quarter of next year, despite current market fluctuations.
The company's strategic engagement remains on pause as it awaits further updates on resources and outcomes from various studies. Meanwhile, five drilling rigs are actively working at the Adina site in preparation for planned resource updates in the first half of next year and a scoping study/ Preliminary Economic Assessment (PEA) expected in the second half.
Evans has addressed industry concerns by pointing to Canada's robust regulatory framework and Winsome Resources' strong financial position, which underpin its upcoming initiatives. He also noted that merger and acquisition trends seen in Western Australia could shift toward Canadian regions like Quebec, making them increasingly attractive within the lithium sector.
The Adina project's MRE is based on extensive drilling campaigns, with more assays pending from ongoing efforts. Winsome Resources is preparing for an ambitious drilling campaign that will exceed 50,000 meters over the coming year. This proactive approach suggests that the potential single-pit mineable ore body could extend beyond the currently known strike length as exploration advances.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.