The Mavis Lithium Project covers an area of 2624 hectares in north-western Ontario, Canada. Pioneer and ILC have formed a strategic alliance to explore the Project using ILC’s existing Canadian-based technical team.

The Mavis Lithium Project is situated 19 kilometres from the town of Dryden, Ontario and approximately 300 kilometres via the Trans-Canada Highway from Thunder Bay, an industrial centre in Ontario. Rail and power is readily available as well as a skilled workforce, experienced in sustainable natural resource development. 60 km southeast of the Mavis Lithium Project is Pioneer's Raleigh Lithium Project.

Twenty significant sized pegmatites have been identified to date in outcrop within the Mavis Lithium Project properties, within a supporting lithium soil geochemistry anomaly. Individual outcrops vary in strike length from 11 metres to more than 240 metres and range in thickness of up to 12 metres. To date, three generations of drilling since the 1960s have systematically demonstrated that pegmatites at the Fairservice Prospect are strongly mineralised, and the first drill holes into the Mavis Lake Prospect, drilled in 2011, also intersected spodumene.

Latest developments

  • Pioneer has an Option Agreement and Strategic Alliance with International Lithium Corp (TSX.V: ILC) to earn up to an 80% interest in the Mavis Project.
  • Diamond drilling has intersected high grade lithium in spodumene-pegamatites >800m strike length at the Fairservice Prospect.
  • Outcrops vary in strike length from 11m to >240m and range in thickness up to 12m within an initial 4.8 km long target zone.
  • Diamond drilling commenced December 2016 (2 December 2016 announcement).
  • Multiple additional, undrilled lithium pegmatite targets.

Highlight Drilling Intersections from the 2011 and 2012 programmes:

  • MF-11-08: 7m at 1.83% Li₂O from 4m
  • MF-11-09: 7.8m at 1.86% Li₂O from 18.85m
  • MF-11-12: 16m at 1.53% Li₂O from 125m
  • MF-11-12: 26.25m at 1.55% Li₂O from 152m
  • MF-11-13: 5m at 1.44% Li₂O from 19m
  • MF-11-14: 3m at 2.15% Li₂O from 24m
  • MF-11-15: 5.35m at 1.51% Li₂O from 78.4m
  • MF-12-24: 16.4m at 1.86% Li₂O from 161.9m
  • MF-12-25: 5.15m at 1.75% Li₂O from 130.7m
  • MF-12-28: 6m at 2.53% Li₂O from 6m
  • MF-12-30: 6.95m at 1.45% Li₂O from 32.25m
  • MF-12-33: 3m at 2.26% Li₂O from 22m
  • MF-12-34: 5m at 1.5% Li₂O from 24m
  • MF-12-36: 6m at 1.48% Li₂O from 31m

All widths reported are drill core widths and have not been converted into a true width. Appropriate rounding of Li₂O values applied.

Key components of the transaction

  • Pioneer may earn a 51% interest in the Project by expending C$1.5 million on exploration activities within a period of 3 years (“First Earn In”); and paying to ILC a total amount C$375,000 in an approximate 50/50 proportion of cash and shares, in instalments over three years;
  • Following the First Earn In, ILC will accrue a 1.5% Net Smelter Return royalty. Pioneer may buy back this royalty for C$1.5 million. In addition, a pre-existing 5% royalty over the Fairservice Prospect may be purchased by the Joint Venture for an additional C$1 million;
  • Pioneer may then earn an additional 29% through expending C$8.5 million within 7 years, (total C$10 million over 10 years to earn a total interest of 80%). Thereafter the Joint Venturers will contribute on a pro-rata basis. If either party dilutes to 15% project equity, it will retire from the joint venture and revert to a 1.5% royalty and
  • Pioneer will have a right to participate in the acquisition of certain other lithium project opportunities identified by ILC.

Exploration

ILC geologists are currently on site at the Mavis Lithium Project, and additional field staff from Coast Mountain Geological Ltd and members of the Wabigoon Lake Ojibway Nation have commenced initial field programmes, comprising ground magnetic, litho-geochemistry and soil surveys, which are scheduled for completion in July 2016, with diamond core drilling to follow.

  • Ground Magnetic Surveys will be used to identify blind, near-surface pegmatite emplacements. Pegmatites typically have low magnetic susceptibility when compared with the encompassing basaltic host rock. The magnetometer survey will be very detailed, taking continuous readings along lines that are spaced 50 metres apart. Approximately 250 line kms are planned and will provide the first property-wide comprehensive magnetic susceptibility modelling utilizing the most up-to-date technology;
  • Litho-geochemical Surveys sample outcropping rocks to identify the presence of distinct geochemical signatures which form a halo in the basaltic host rocks within several metres of rare metal pegmatites. Experience at the Mavis Lithium Project has demonstrated that these rare metal dispersion halos can be very well developed in areas where pegmatites are known, but more importantly, indicate areas of proximity where pegmatites are buried under soil cover, or do not outcrop;
  • Soil Geochemistry Surveys are used to identify rare metal dispersion halos expressed in soils where there is limited outcrop to perform a litho-geochemical survey.

These surveys, when combined with prospecting and mapping are intended to identify high priority targets for a subsequent drill programme. Already field reconnaissance this year at the Pegmatite 18 prospect has confirmed an untested spodumene-bearing pegmatite with a surface outcropping strike length in excess of 200m.

2016 drilling will initially expand on intersections from 2011 and 2012 programmes, which demonstrated the presence of high-grade, well-evolved, lithium bearing pegmatites; and then move onto new targets.

  • Drilling: 1,500m of orientated diamond drilling is forecast. Holes will further test key spodumene intersections from earlier drilling and channel samples including those obtained from 2011 and 2012, at both the Fairservice (Pegmatites 3-6) and Mavis Lake (Pegmatites 17-18) sites, and with an additional allocation for new targets. Dependent upon the completion of the preliminary field surveys and obtaining regulatory approvals, drilling is likely to commence in September 2016.

Highlight Drilling Intersections from the 2011 and 2012 programmes:¹

  • MF-11-08: 7m at 1.83% Li₂O from 4m
  • MF-11-09: 7.8m at 1.86% Li₂O from 18.85m
  • MF-11-12: 16m at 1.53% Li₂O from 125m
  • MF-11-12: 26.25m at 1.55% Li₂O from 152m
  • MF-11-13: 5m at 1.44% Li₂O from 19m
  • MF-11-14: 3m at 2.15% Li₂O from 24m
  • MF-12-24: 16.4m at 1.86% Li₂O from 161.9m
  • MF-12-25: 5.15m at 1.75% Li₂O from 130.7m
  • MF-12-28: 6m at 2.53% Li₂O from 6m
  • MF-12-30: 6.95m at 1.45% Li₂O from 32.25m
  • MF-12-33: 3m at 2.26% Li₂O from 22m
  • MF-12-34: 5m at 1.5% Li₂O from 24m
  • MF-12-36: 6m at 1.48% Li₂O from 31m

The highest lithium values on the Mavis Lake Property occur in albite-spodumene-type pegmatites such as Pegmatite 18. Earlier sampling on the Pegmatite 18 prospect by ILC returned grab samples grading up to 3.14% Li₂O² and one composite channel sample across part of Pegmatite 18 graded 1.22% Li₂O2 over 5.3m).

Note 1: Drill core lengths and have not been converted into true width. Appropriate rounding of Li₂O (lithia) values applied.

Note 2: Clarke JG, Breaks FW, Osmani IA, 2010.

Further information

Further information on the Mavis Lithium Project and the transaction is provided in previous ASX announcements dated 15 March 2016 and 20 April 2016 respectively. Shareholders approved the acquisition by the Company of the Mavis Lithium Project on 13 June 2016.

For further information about drill intersections noted in the text and on Figures refer to announcements by International Lithium Corporation at www.internationallithium.com including:

  • Clarke JG, Breaks FW, Osmani IA: Technical report (NI43-101) on the Mavis Lake Lithium Property, February 5th, 2010
  • Drill Program Extended by 46% at Mavis Lake / Fairservice Lithium & Rare Metals project, Ontario, October 11, 2011
  • Extensive rubidium and lithium mineralized pegmatites identified Mavis Lake – Fairservice lithium and rare metals project, Ontario, February 21, 2012
  • 78 Metre Pegmatite Intersection Returns High Grade Lithium Mavis Lake – Fairservice Lithium and Rare Metals Project, Ontario, January 12, 2012
  • ILC Loan Terms with Strategic Partner Ganfeng Lithium Approved. Drilling Commences At Mavis Lake, Ontario, December 3, 2012
  • International Lithium Corp. Reports High Grade Lithium from Mavis Lake, Ontario, April 3, 2013
  • International Lithium Corp. Reports High Grade Lithium and a New Exploration Target, February 19, 2013

December 2016