Li-FT Power Advancing High-Grade Lithium Project Quickly Through the Phases

• Li-FT Power is focused on developing a lithium project in Canada, with high-grade assay results continuing to come from drilling.
• They have completed 34,000 meters of drilling so far and plan another 25,000 meters, working quickly towards an inferred resource estimate by August/September 2024.
• Sentiment is currently very negative towards lithium stocks, but they believe this is an ideal time to advance projects before the next upswing in prices.
• Location and infrastructure are crucial considerations for lithium projects along with resource size. Their Canadian location provides advantages over some other jurisdictions.
• Steady news flow of drilling results expected over the coming months as they continue systematic exploration of identified lithium pegmatites.

Lithium Explorer Advancing Quickly in Canada Amidst Market Negativity

Canadian lithium exploration company Li-FT Power is continuing to achieve positive drill results at its Yellowknife lithium project, located in the Northwest Territories. Despite weak market sentiment, the company is rapidly advancing exploration efforts to define a substantial mineral resource by the end of 2023.

Over 34,000 meters of drilling has been completed already in 2023, with plans for another 25,000 meters in the coming months. As CEO Francis MacDonald highlighted, "We are putting a lot of meters into this. We are putting a lot of money into it." The intention is to delineate the resource potential of numerous lithium-bearing pegmatites which have been identified protruding out of the ground on the property.

The latest assay results are from the Shorty and Five Southwest pegmatites. Highlights include an intercept of 20 meters at 1.52% lithium oxide from the Shorty pegmatite and 26 meters at 1.12% lithium oxide from Five Southwest. As MacDonald noted, “1.52% is quite high grade, and 20 meters of it is significant.” Hit rates overall have been exceptional, with 80-90% of drill holes intersecting mineralization. This success rate reflects the advantages of testing easily visible pegmatite targets.

The systematic grid drilling aims to define resources efficiently to demonstrate scale. According to MacDonald, “We need to show people that this is a world-class camp. It’s a world-class resource." The next milestone will be announcing an initial inferred resource estimate around August/September 2024. McDonald believes this first resource statement will provide a "box in people's minds" regarding size potential.

Interview with Chief Executive Officer, Francis MacDonald

Market Conditions and Strategy

In terms of current junior mining market conditions, MacDonald admits, “Sentiment is horrible right now.” Lithium prices have fallen around 75% from recent highs, dampening enthusiasm. However, he argues that even at lower prices, “it’s still happy days for lithium miners." Profitability remains strong in the industry. More importantly, MacDonald sees no change to the long-term trajectory of rising electric vehicle demand driving lithium consumption higher. In his words, “This is a great time to have some cash in the bank. Advance projects as quickly as you can and get ready for the next leg up.” Their strategy is to opportunistically “sow the seeds” during a downcycle to capitalize when positive pricing trends resume. Rapidly growing resources and advancing technical studies will position them to move towards potential future development.

One question is whether Li-FT Power might sell out to a larger industry player before reaching the construction stage. MacDonald acknowledges that offers could arise “if someone came out and gave us a great offer." However, he emphasizes that “we do have the team in place that we can advance this to construction." If markets remain challenging, the preference is to continue independently advancing. Location, infrastructure, and resource size will ultimately determine appeal for potential acquirers.

Lithium Project Infrastructure Considerations

In lithium projects, infrastructure to enable the transport of concentrates to processors can be even more important than sheer deposit size. As MacDonald notes, “Infrastructure might be even more important than how much lithium you actually have in the ground." The Yellowknife location provides key advantages regarding infrastructure over jurisdictions like Africa and Australia with similarly large resources. Proximity to roads, rail, power and water makes development more feasible relative to remote sites. Eventually producing and shipping upwards of one million tons of concentrates will require this supportive infrastructure. Compared to gold or diamonds, the volumes of lithium ores and concentrates make infrastructure critical.

Next Steps

With systematic exploration ongoing, Li-FT Power expects continued news flow regarding drilling results every week over the coming months. The winter drill program will commence in early January, likely with six rigs active. Resource modeling efforts integrate drilling data, bulk sampling, metallurgical analysis, and geotechnical studies to support the preliminary economic assessment planned after announcing the initial resource estimate.

Despite depressed industry sentiment, Li-FT Power's Canadian lithium project offers substantial upside potential. Methodical exploration and rapid resource growth even in a down market could position the company strongly for the inevitable future upswings in lithium demand.

The Investment Thesis for Li-Ft Power

• to explore and expand resources aggressivelySystematically exploring visible, high-grade lithium pegmatites could quickly define world-scale resources in a proven mining jurisdiction
• Process plant locations accessible; concentrate logistics feasible
• Weak industry sentiment allows acquiring shares at discounted valuations
• News flow from ongoing drilling and study results provides continual upside catalysts
• Well-timed pea and resource estimate in 2024 ahead of forecast price resurgence

Li-FT Power aims to capitalize on temporarily weak lithium market enthusiasm to explore and expand resources aggressively. The intention is to have projects primed to take advantage once future supply shortfalls again stimulate commodity pricing increases. While lithium demand grows exponentially in the coming decades, opportunities exist now for positioning promising assets in jurisdictions like Canada for development. Li-FT Power's strategy focuses on demonstrating resource scale and economic viability even amidst current industry headwinds. Their systematic exploration and rapid timing could pay dividends down the road.