Mining
Thursday, March 21st, 2024 2:53 am EDT
Key Points
- AM Resources Acquisition in Austria:
- AM Resources shocked the world in May 2023 by acquiring over 60 square kilometers of lithium-rich properties in Austria, including Legend, East Wolf, and Sankt Rad.
- The acquisition is a significant milestone in AM Resources’ strategic plan to develop a leading European lithium supply chain, with CEO David Grondin highlighting the strategic location and geological indicators of valuable lithium minerals.
- Exploration Discoveries:
- AM Resources announced discoveries of new spodumene-bearing pegmatites at their Sankt Rad, East Wolf, and Legend lithium projects in Austria, as well as the Stall project.
- The Stall project, acquired in November 2023, shows promise with historical drilling indicating the presence of pegmatite bodies bearing spodumene, alongside tungsten occurrences, enhancing the project’s prospectivity.
- Exploration Progress and Potential:
- Preliminary exploration work on the Sankt Rad, East Wolf, and Legend projects revealed diverse geological compositions and significant mineralogical findings, including spodumene-bearing pegmatites.
- These discoveries underscore the potential for significant mineral exploration in Austria, particularly for spodumene-bearing pegmatites, positioning AM Resources for future success in the lithium sector.
In May of 2023, a little tiny mining company by the name of AM Resources (TSXV:AMR) shocked the world with a massive transaction in the lithium space in Austria, acquiring over 60 square kilometres, consisting of three properties: Legend, East Wolf and Sankt Rad.
To quote Mr. David Grondin, “Austria is an important jurisdiction for us, and this acquisition represents a significant milestone in our strategic plan to develop a leading European lithium supply chain,” said David Grondin, CEO of AM Resources. “Notably, the East Wolf property is situated in a highly strategic location, just 5 km from the Wolfsberg lithium project, an old lithium mine that is currently undergoing efforts to resume production with an indicated resource of 6.3 million tonnes at 1.17% LiO2. Geological data indicates that the East Wolf property comprises massive amphibolite and micaschiste with pegmatite intrusions, which are favorable indicators of the presence of valuable lithium minerals. The Corporation is confident that this acquisition has the potential to significantly enhance its asset portfolio, and is eager to collaborate with local partners to expedite the exploration and development of these promising projects.”
The Sankt Rad property also shows promising exploration potential. Historical grab sampling work done in 1983 by an Austrian geological survey team at proximity to the property has revealed significant high-grade lithium results, as shown in the following table (source: Friedrich Koller, Michael A. Gotzinger, Richard Neumayer, Gerhard Niedermayr, August 1983).
Austria has a proven track record for mining and is home to historical lithium extraction operations. The country’s favorable regulatory framework, skilled workforce, and advanced infrastructure make it an attractive jurisdiction for mining companies seeking to expand their operations. In addition, Austria is also a major hub for electric vehicle manufacturing, with companies such as Mercedes, BMW and Fisker all having production facilities in the country.
Then, almost 10 months to the day, AMR announced that they’ve discovered new spodumene-bearing pegmatites at their 100-per-cent-owned Sankt Rad, East Wolf and Legend lithium projects in Austria, as well as a new project they acquired called the Stall project in Austria.
The Stall property comprised 19 claims that have been acquired by AM Resources in November, 2023, by way of staking.
Following extensive research efforts, AM Resources has not conducted any work program on this property yet, but historical drilling has identified the presence of pegmatite bodies bearing spodumene. In addition to spodumene-bearing pegmatites, the Stall claims also host a historical tungsten showing and a former artisanal tungsten underground access.
Tungsten occurrences alongside lithium-bearing pegmatites is of particular importance due to its geological association. Tungsten is commonly found in close proximity to pegmatite bodies in Europe, serving as a reliable indicator of the mineralized nature of the surrounding geological formations. As such, the identification of tungsten in the Stall region strengthens the prospectivity of the area for hosting lithium deposits as confirmed by historical drilling. Tungsten, a critical metal with applications in manufacturing, aerospace and defence industries, further enhances the potential of the Stall project.
Sankt Rad project
Preliminary exploration work on the Sankt Rad project covered approximately 23.5 square kilometres and involved visiting 14 locations with pegmatite bodies, including in situ outcrops and boulders. Various types of locations were explored, ranging from areas near roads, road cuts and hiking trails, to animal trails.
The exploration team identified several types of pegmatites, including simple pegmatites, evolved pegmatites and albite-spodumene pegmatites, suggesting a diverse geological composition in the area. Mineralogical zoning was observed in the spodumene-bearing pegmatites, with a predominance of green-coloured spodumene, though beige specimens were also encountered. The presence of minerals like spodumene within the albite-spodumene pegmatites warrants further exploration.
The corporation also collected a total of 229 pegmatite grab samples and six spodumene-bearing pegmatite grab samples on the Sankt Rad project, which will be submitted for assay and geochemical analysis.
East Wolf and Legend projects
Preliminary exploration work on the East Wolf and Legend projects covered an area of approximately 15 square km each. Both properties have shown similarities in their geological structures. Predominantly in situ pegmatite bodies and boulders of various sizes were discovered during the exploration program. The mineralogical composition of these bodies includes quartz, feldspar, mica, biotite, tourmaline, garnet and, in some cases, spodumene, hosted in mica schist and amphibolite.
An in situ pegmatite body with dimensions of three metres in width and length was observed, embedded in micaceous schist, containing spodumene. No previously documented mineral occurrences by the Austrian government were identified in the vicinity, highlighting the novelty of this discovery. Spodumene pegmatites were found close to the contact zone with the host rock, primarily micaceous schist, with occasional occurrences of amphibolite.
Over all, the information obtained suggests that the East Wolf and Legend areas hold significant promise for mineral exploration, particularly for spodumene-bearing pegmatites, and warrant further investigation to fully understand their exploration potential.
AMR also collected a total of 32 pegmatite grab samples and four spodumene-bearing pegmatite grab samples from the East Wolf project, and 51 pegmatite grab samples from the Legend project, which will be submitted for assay and geochemical analysis.
Now I know lithium isn’t the hottest sector right now but this is exactly the reason why I’m showing you the Company at $0.03/share, trading at a $4M market cap. It’s cheap for a reason. The sector sucks right now, the company has had its share of issues but all that has been resolved and the company is now over the hump and focused on making a massive lithium discovery in Austria. There isn’t a pegmatite in site in the country that AMR hasn’t seen. The lithium sector will come back and when it does, it’s company’s like AMR at a $4M market cap that will reap the rewards…big time. There is no way in hell AMR could’ve pulled off the deal they did and acquired such a land position if we were in a good market. Deals are meant to be done in bad markets and the rewards are meant to be reaped in a good market and that’s the exact gameplan i’m looking at taking advantage of here with AMR.
I know many of who are familiar with my relationship with David. It’s true, i love the guy. He was my first ever client and the first one to give me a real shot in this business. I first backed him on TomaGold (TSXV:LOT) and at times, it worked out extremely well, rewarding shareholders over 5X on their money (if they sold at the right time). Everything is about timing in this business and I don’t think I’ve seen a better set-up in the lithium space than AMR right now.
This is only the first of many articles on AMR so make sure to keep it on watch and stay tuned…there’s a lot more to come:)
