New Lithium Discovery in Ontario for Metal Energy

• New Lithium Discovery in Northwestern Ontario: James Sykes, CEO of Metal Energy, introduces "Source Rock", an exciting new lithium brine prospect in Northwestern Ontario that has never been drilled before.
• Shift from Nickel to Lithium: Due to a slump in the nickel market and its reduced demand, particularly from China, Metal Energy has shifted its focus towards lithium, seeing its increasing relevance in the Electric Vehicle (EV) market.
• Discovery Details and Exploration: The discovery of the lithium brine was based on old drill results which indicated salty waters, signaling the presence of lithium brines. The company has staked a massive portion, 95 km long and 10-20 km wide, which encapsulates the best parts of the Sibley basin.
• Regulatory and Indigenous Community Relations: Metal Energy has already obtained permits for the project. Initial outreach has been made to indigenous communities for consultation, and the company is gearing towards a proof-of-concept drill hole.
• Future Plans and Expectations: Aiming to begin drilling by the end of December, Metal Energy hopes to validate the presence of lithium in the brines. Positive results could boost the company's market cap significantly, aiming for a potential 20x return.

About Metal Energy

Metal Energy Corp is a Canadian mineral exploration company focused on lithium brine projects in Ontario, Canada. The company was previously focused on nickel exploration but has recently acquired a promising lithium brine project called Manitou in northwestern Ontario.

Metal Energy is a junior mining company led by CEO James Sykes. The company was previously focused on exploring the Manibridge nickel project but has shifted focus to lithium due to weak nickel market conditions. Metal Energy currently has around $2 million in cash and no major spending commitments, allowing it to search for new projects. The company has a market capitalization of only around $5 million as of September 2022.

Interview with James Sykes, CEO of Metal Energy

The Manitou Lithium Project

The Manitou lithium project is located in northwestern Ontario within the Seine Group sediments of the Superior Province. The project covers 95 km of strike length and 10-20 km width for a total size of 1200 sq km. Metal Energy acquired the project from a prospector who staked the ground and obtained drilling permits.

The geological setting is prospective for lithium brine deposits, with historic drilling in the area intersecting halite and sylvite beds within the sedimentary basin. Lithium values up to 200 ppm were recorded in previous drilling. The presence of salt encrustations on drill cores also indicates saturated brines are present.

CEO James Sykes sees the Manitou lithium brine project as highly prospective. The company believes they have acquired the deepest part of the basin with the most potential for concentrated lithium brines. The large size of the project also provides significant exploration upside.

Upcoming Exploration Plans

Metal Energy has all necessary permits in place and is planning its first drill hole by December 2022. Consultations with local Indigenous groups are underway. The first drill hole will be a proof-of-concept drill test to confirm the presence of lithium-bearing brines.

The proof-of-concept drill hole will test multiple aquifers within the sedimentary basin. Extensive brine sampling and assaying will be done to determine lithium concentrations. Metal Energy is budgeting approximately $500,000 for this initial drill program.

Results from the drilling are expected within 2-4 weeks. The primary goal is to confirm lithium is present within the brines. Follow up drilling would then better delineate resources and grades. CEO James Sykes believes a positive result could increase the company's market capitalization substantially.

Investment Upside

If Metal Energy can demonstrate it has discovered lithium-bearing brines at Manitou, the stock could rapidly rerate. The current market cap around $5 million leaves significant upside potential. Other junior lithium explorers in Canada have achieved market caps above $50 million after announcing projects.

The combination of depleted cash position, prospective geology, and drilling imminent makes Metal Energy an interesting speculative investment at current levels. Confirmation of lithium brines could light the stock up. Investors with a high risk tolerance may want to take a small position ahead of drill results.

Conclusion

Metal Energy is an attractive speculative investment opportunity ahead of maiden drill results at its newly acquired Manitou lithium project. The large project size, prospective geology, and fully permitted status provide investors with multiple ways to win. Traders should watch for drill results expected within the next 2-4 months that will confirm if lithium is present within the targeted brines.