Midland Exploration has amended its existing option agreement with Rio Tinto Exploration Canada (RTEC), effective April 22, 2024, by incorporating the Wookie project into the agreement originally established in June 2023. The Wookie project, situated in the lithium-rich Eeyou Istchee James Bay area of Quebec, adds significant potential to the collaboration, expanding the total covered area to approximately 1,139 square kilometers across eleven projects.
With the inclusion of the Wookie project, the amended agreement outlines that RTEC may increase their interest in the properties. Initially, RTEC can acquire a 50% interest by making additional cash payments totaling $350,000 over the next four years and committing to $1.5 million in exploration expenditures, raising the total to $16 million. This includes a firm commitment to spend at least $2 million in the first 18 months post-wildfire restrictions lifted in August 2023.
Following the acquisition of a 50% stake, RTEC has the option to further increase its stake to 70% by spending an additional $4 million on exploration, totaling an overall commitment of $54 million across the designated properties.
The Wookie project is strategically located about 40 kilometers north-northwest of the James Bay Lithium deposit, within the La Grande geological subprovince. It covers over twenty square kilometers of mafic volcanic rocks, a setting deemed highly favorable for lithium pegmatites but previously underexplored. Historical data from the Quebec government indicates the presence of tantalum, cesium, and rubidium in pegmatites near the project area, elements commonly associated with lithium-rich pegmatites.
This expansion into the Wookie project is backed by recent discoveries, including a nearby spodumene pegmatite by Quebec Precious Metals Corporation, which reported lithium oxide grades as high as 3.9%.
Midland Exploration continues to act as the property owner, with RTEC serving as the project operator for both the initial and potential second option periods. This partnership aims to tap into the burgeoning demand for lithium, essential for the manufacture of electric vehicle batteries and other technologies.
