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Quebec Lithium explorer Glen Eagle (TSXV: GER) announces a 40% jump in resource estimate
by ubika Research on Mar 04, 2011
On Feb 15 2011, Glen Eagle Resources (TSX VENTURE: GER) (CVE: GER) announced a new NI 43-101 compliant mineral resource estimate for its 100% owned Authier Lithium deposit located near Val D’or Quebec.The mineral resource estimate, using a base case cut-off grade of 0.8% Li2O (Lithium Oxide), totals 4,167,000 tonnes grading 1.04% Li2O in the indicated resource category with an additional 2,290,000 tonnes grading 1.00% Li2O in the inferred resource category. This represents a 40% jump from the previously calculated mineral resource estimate and is based on 72 holes drilled on the property and the previously available historical data. The mineral deposit covers a strike length of 720 m and goes down to a maximal depth of 155 m below surface.The mineral resource was calculated by S.G.S Canada, one of the best regarded mining consulting firms in the country.
The company is currently pursuing a 4000 metre drill program which should generate good news flow in the near-term. Since the resource announcement, the company has also announced the commissioning of a pre-feasibility study. The company believes that the increase in the indicated resource estimate to 4.1 million tonnes in the latest resource estimate improves their confidence of the pre-feasibility study.
Glen Eagle’s 100% owned Authier Lithium deposit is located 45 km North West of Val d’Or in Quebec near Canada Lithium Corporation (TSX:CLQ). Canada Lithium Corporation is scheduled to build a lithium processing plant by 2012. Authier deposit is situated next to the main highway with the entire infrastructure in place. The property consists of 19 claims. The deposit is situated in only 4 of these claims and is open at depth and to the North West. A potentially new lithium-bearing pegmatite extending over a length of 2.2 km was recently discovered 400 meters to the North-West of the actual deposit. The current resource envelope has a strike length of 720 metres. If the company is able to prove a resource in this newly identified mineralized zone they could potentially increase the size of the current resource estimate many times.
Glen Eagle (TSX VENTURE: GER) (CVE: GER) is a junior lithium mining company that in a short period of time has managed to prove up a sizable NI 43 101 complaint Lithium Oxide deposit. They have achieved these results with minimal share dilution (only 30 million shares outstanding). This, along with the fact that the company is working to expand the resource while advancing the project to pre-feasibilty, shows that the company is well positioned to achieve a valuation upgrade and a re-rating of the stock.
Again, we would like to point out that Glen Eagle is situated in a neighbourhood with a good address as Canada Lithium is the neighbour and Quebec is a mining friendly jurisdiction. The Authier deposit has access to world-class infrastructure, labour and technical personnel as it is situated in the well regarded Val D’or mining district in Quebec. Canada Lithium (TSX:CLQ) (TSE: CLQ) recently raised $126.5 million and is working to commission a processing plant in 2012. Glen Eagle has a market cap of $7.1M and Canada Lithium has a market capitalization of over $220 Million (after the drop in share price recently). While we recognize Canada Lithium has a bigger resource estimate (although it is under review) if Glen Eagle could prove up its resource estimate and advance the project, it would become a highly attractive acquisition target.