Lithium Universe (ASX:LU7) well

In a bold move set to reshape the lithium mining sector, Lithium Universe (LU7) is poised to leverage its hard rock assets in the tier-one mining regions of Australia and Canada.

Led by the seasoned Iggy Tan, whose prior venture, Galaxy Resources, merged with Orocobre in 2021 to create the multi-billion dollar Allkem (AKE), LU7 is now positioned to redefine the lithium landscape.

With Allkem holding a current market capitalisation of $8.7 billion, Mr Tan has proven himself as a titan in the field, with a sole mission to delve into the heart of the James Bay region to promptly obtain a resource and construct a spodumene-producing mine in Québec, Canada.

This move is timely, as Canada currently struggles with limited to no lithium production.

Significantly, both provincial and federal governments have recently thrown their support behind the critical minerals supply chain, setting the stage for LU7’s ambitious strategy.

And Mr Tan believes Lithium Universe is set aside from the rest.

“One of the biggest differentiation points of our company is that we are not here to explore for the sake of exploring, we are here in Canada to build a lithium project as fast as we can,” he said.

“There are many lithium explorers in the world today but not many have the experience and track record to build successful lithium plants.”

The company will harness emerging artificial intelligence (AI) technology through a partnership with KorrAI Technologies (KorrAI) to refine its exploration strategy for the Apollo project.

Given the concentration of world-class lithium projects in the region surrounding Lithium Universe, including companies such as Patriot Battery Metals (PMT), Winsome Resources (WR1), Recharge Metals (REC), and Rubix Resources (RB6), staying relevant and ahead of its advanced technological strategies will be crucial.

While China currently dominates the chemical refinery of lithium and is the world leader in lithium-ion battery production, this is rapidly changing. Several companies are now utilising the fertile James Bay region to extract spodumene content.

Although the development pathway to produce a first-ever resource typically spans a minimum of eight years of development, Mr Tan has showcased his true fast-tracking abilities with Galaxy Resources by achieving production in just three years.

In addition to his expertise, Mr Tan has assembled what he refers to as the “lithium dream team” to expedite the transition from exploration to production, a process that most investors have yet to witness.

Dr Jingyuan Liu is a leading international expert in lithium-downstream processing and previously served as the General Manager of Technology at Galaxy Resources, where he helped develop the Jiangsu lithium carbonate project.

Additional team members include LU7’s newly appointed Non-Executive Director, experienced lithium veteran Patrick Scallan, who managed the Greenbushes mine for more than 25 years, and Roger Pover, who also spent time at Greenbushes as Plant Manager.

Mr Scallan is a specialist in hard rock exploration, mining and spodumene concentrating and has fostered strong relationships with big-name spodumene converters worldwide.

“The team is now focused on deploying the funds raised from the public offer on the highly prospective ground in Québec,” Mr Tan added.

“The team has spent many months completing due diligence and assessing these projects and is eager to scale up our exploration and development activities on the ground.”

In response to the growing demand for battery metals, the Canadian Government unveiled its inaugural Critical Minerals Strategy last December.

This strategy is designed to promote increased investment in projects exploring lithium in the country, a move that is especially significant considering that Québec was ranked as the eighth most attractive country worldwide for mining investments in 2022, according to the Frazer Institute.

Interestingly, the same report ranked Canada’s soil as more promising for lithium discoveries than most Australian states, despite Australia being a global leader in lithium production.

Canada currently possesses 2.9 million tonnes (Mt) of lithium reserves, equivalent to 2.5 per cent of global resources. In 2020-2021, Canada managed to export 45 tonnes of lithium oxide and hydroxide, generating a total revenue of $131,000, with most of these exports destined for China.

LU7 has set an ambitious goal of outperforming its local competitors in Canada by becoming the first company to successfully navigate all stages from lithium exploration to production.

To achieve this goal, LU7 has one flagship lithium project situated within the same greenstone belt and only 30 kilometres away from Patriot Battery Metals’ Corvette (109Mt at 1.42 per cent lithium oxide) project and Winsome Resources’ Adina Project.

In pursuit of this goal, LU7 may also assess the feasibility of establishing a vertically integrated lithium processing hub (QLPH) in Québec, Canada.

Mr Tan’s vision involves evaluating the possibility of constructing a multi-purpose independent concentrator to supply a battery-grade lithium carbonate refinery (QLPH Lithium Carbonate Refinery) capable of producing 16,000 tonnes per annum (TPA).

LU7’s Apollo Lithium project covers an impressive 240 square kilometres and shares the same Greenstone belt as the Corvette lithium project operated by Patriot Battery Metals (PMT).

PMT has enjoyed notable success in the La Grande sub-province, delivering an impressive 109Mt at 1.42 per cent lithium oxide maiden resource. LU7 aims to replicate this success.

Additionally, just 28 kilometres to the east lies neighbouring company Winsome Resources (WR1), which reported impressive drill results of 93 metres at 1.28 per cent Li2O, and 107 metres grading 1.34 per cent lithium oxide from the surface at its Adina project.

LU7 asserts that its Apollo tenement boasts 17 pegmatite outcrops with geological and geophysical characteristics similar to the spodumene pegmatites found at Corvette and Adina.

LU7 also plans to incorporate AI into its exploration strategy through its partnership with KorrAI Technologies.

This approach is expected to enhance and optimise fieldwork while reducing exploration costs.

LU7 has already demonstrated the effectiveness of this system with a previous study, successfully identifying lithium-caesium-tantalum (LCT) bearing pegmatites using remote sensing, airborne and ground-based geophysics, and AI.

This led to the identification of 448 priority targets on the Apollo property, narrowed down to 28 priority targets for field mapping and sampling.

LU7’s next endeavour, the Adina South and West project is located in proximity to Winsome Resource’s Adina project, which has delivered an impressive 93 metres at 1.28 per cent Li2O and 107 metres grading at 1.34 per cent lithium oxide.

This project is one of the largest prospective land holdings adjacent to Winsome Resources, with aerial satellite images revealing similar pegmatite occurrences at the surface.

Notably, the prospects, particularly WR1’s Jamar prospect, remain open at depth and along strike, suggesting the potential for further mineralisation in the area.

So far, four outcrops have been identified at Adina, primarily comprising pegmatite-hosted formations with granite outcrops containing biotite and prismatic muscovite textures.

The Margot Lake project is situated in north-western Ontario, recognised as a premium lithium region within Ontario’s Red Lakes Mining District.

The district has gained the moniker ‘Electric Avenue’ due to its potential for lithium deposits that could drive Canada’s lithium market into production.

Significant discoveries by Canadian company Frontier Lithium in this area have expedited LU7’s entry into the competitive landscape of lithium explorers scattered across the James Bay region.

The Margot Lake project is strategically located just 16 kilometres southeast of Frontier Lithium’s PAK Deposit, which holds a mineral resource estimate (MRE) of 9.9Mt at two per cent lithium oxide.

Furthermore, the project is in close proximity to Frontier’s Spark Deposit, located 18 kilometres away, which also boasts an indicated MRE of 18.8Mt at 1.52 per cent lithium oxide.

LU7 contends that the area features nine known pegmatites exhibiting geological characteristics similar to other significant resources in the immediate vicinity.

Historic mapping by the Ontario Geological Survey (OGS) has identified occurrences of mica-granite pegmatites and granodiorite pegmatites.

With Mr Tan’s leadership and a highly capable team, LU7 is not merely participating in the lithium sector – it is setting a new standard.

Mr Tan brings three decades of experience in mining and chemical processes, with a remarkable track record in commercial mining projects, including start-ups, capital raisings, construction, and operations.

The company’s flagship Apollo Lithium project boasts 17 pegmatite outcrops with geological and geophysical characteristics similar to the spodumene pegmatites found at Corvette and Adina.

Furthermore, the integration of AI technology into exploration activities holds the potential to catapult the company ahead, saving both time and costs in the competitive race toward lithium production.

As the Canadian government actively supports lithium exploration and Québec emerges as a mining investment hotspot, LU7 is strategically positioned to lead the charge in reshaping the lithium mining sector.