Because the world isn’t already confusing enough, I thought I’d share my latest trip down the rabbit hole. Today I’m writing about a lithium explorer, so one of the things I thought I’d review was the underlying commodity price. I knew it had surged to record levels recently but was taking a bit of a breather, I wanted to know if the price had come off a little or a lot. The first number I got when I googled the price of lithium was US$0.0007898. That seemed like a weird number so I figured I’d better see what measurement that was based on. Maybe some exchange started tracking lithium in milligrams or something. Nope, some marketing genius decided to hop on the rocketing global demand for lithium by creating a crypto coin called lithium that is part of the decentralized NFT valuation protocol. Do not be concerned, the actual commodity is still trading near all-time record highs which should be exceedingly profitable for any producer that can get it to market.

Now that we’ve cleared that up, let’s move on to a textbook “closeology” example in the lithium world. I find closeology, or proximity to an existing discovery, is often an encouraging starting point. If for no other reason than you can potentially get a decent trade out of it. A great example was the Newfoundland gold rush of 2021 that was sparked by New Found Gold Corp.’s (TSXV: NFG | NYSE-A: NFGC) incredible drill results that lead to a pretty good rally in virtually every gold explorer that declared they had mining claims in Newfoundland. Unfortunately, since then, gold stocks have been abandoned (until the last week or two), and if you didn’t start matching New Found Gold’s results it turned into a double whammy. However, today’s example won’t be for lack of trying as the company has a well-stocked treasury and 5 drills turning, looking for one of the hottest commodities on the planet right now.

That company is Lithium Ionic Corp. (TSXV: LTH | OTCQB: LTHCF), a Canadian-based lithium-focused mining company with properties covering ~2,000 hectares located in the prolific Aracuai lithium province in Minas Gerais State, Brazil, which boasts excellent infrastructure, including highways, access to hydroelectrical grid power, water, and nearby commercial ports. They have a vision to develop a commercial grade lithium operation economically and responsibly. To do that they have assembled an experienced team with a track record in lithium mining, geology, and capital markets that is ideally suited to execute on a disciplined development plan.

Lithium Ionic is actively drilling two prospects, its Galvani claims, as well as Bandeira (formerly Area 1) of its Itinga claims. When it comes to close, I’ll let the following picture do the talking.

Source: Lithium Ionic Corporate Presentation

Bandeira is located south of the operating CBL Lithium Mine and directly north of SIGMA Lithium Corporation’s (NASDAQ: SGML | TSXV: SGML) Barreiro project. The Galvani property is located less than 4 kilometres from Sigma Lithium’s Xuxa deposit. Another picture will give you an example of the Araçuaí Pegmatite District (APD), where more than a hundred pegmatitic occurrences are known and holds the biggest lithium reserves of Brazil.

Source: Lithium Ionic Corporate Presentation

The reason I’m fixating on closeology is actually more to do with Sigma Lithium than CBL. The reason being, Sigma now hosts the largest hard rock lithium deposit in the Americas, with proven and probable mineral reserves of 54.8 Mt of lithium spodumene at 1.44% lithium oxide. And they’ve done this very quickly, going from less than US$1.50/share in June, 2020 to over US$35/share currently. That’s a market cap of US$3.5 billion. It’s not hard to imagine that if Lithium Ionic can start putting up some significant resource numbers that the market will take notice. Especially those who may have missed out on the tremendous run that Sigma has had.

The question becomes, how can Lithium Ionic get there from here. The Company has roughly C$35 million in working capital, is in the midst of a 30,000 meter drill program with 5 drills operating along with additional regional exploration work ongoing. They expect to produce an inaugural mineral resource estimate in Q1 2023 with drilling updates coming out every 6-8 weeks. And thus far those updates have been solid with the results announced in early November that included 1.98% Li2O over 25.63 meters representing the strongest grades in the Galvani area encountered since the Company began drilling earlier this year. In the same press release, Lithium Ionic reported values of 1.99% Li2O over 6.75m, 1.56% Li2O over 3.90m and 1.44% Li2O over 8.33m all located within 50 meters from surface at its Bandeira project.

You can see the potential is there, although Lithium Ionic is not exactly a hidden gem with a current market cap of roughly C$216 million. However, what I find interesting is that the Company raised C$25 million in October of this year at C$1.60/share and the stock has traded above that level since the start of November. Additionally, they didn’t have to add warrants to this issue to push it out the door, which tends to be a very positive sign of strong support for the stock. Sigma has shown that the sky’s the limit, but you’ll need a lot more than closeology to get there.

Every once in a while I find myself scanning through a company’s website or press releases and then I have to pause for a moment and go back and re-read something. Instead of the usual content you expect to see, something jumps off the page and you have to make sure you read it correctly and that your eyes weren’t playing tricks on you. Today’s junior mining stock had me doing this a couple of times for several different reasons. The company is unusual (in a good way) and not simply because Eric Sprott beneficially owns 25% of the outstanding shares (even more if warrants are exercised). It also had nothing to do with its location, Newfoundland & Labrador, although that’s why I was looking at it in the first place as I just happen to enjoy reading and writing about this special part of Canada.

The first thing that jumped off the page for me was “Approximately 48,000 metres remain to be completed in the current 100,000 m drill program”. For a junior miner anywhere, that is a giant volume of drilling, which also means there has to be plenty of cash around as well. How about a treasure stocked with C$13 million? Seems like enough to undertake such an enormous exploration program and as the Company states “sufficient funds to undertake all the exploration activities planned for 2022”. The last thing that stood out was the number of projects being actively explored – 5. Most junior mining companies don’t have more than 2 or 3 properties to pursue, often only 1, and even more rare is the resources to be working on all these projects over the next 3-6 months.

Needless to say, I was hooked. I had to find out more about Sokoman Minerals Corp. (TSXV: SIC | OTCQB: SICNF), and let me tell, there is a lot more to learn. The Company’s primary focus is its portfolio of gold projects; flagship Moosehead Gold Project, Crippleback Lake (optioned to Trans Canada Gold Corp.) and East Alder (optioned to Canterra Minerals Corporation) along the Central Newfoundland Gold Belt, and the district-scale Fleur de Lys project in north-central Newfoundland. The Company also recently entered into a strategic alliance with Benton Resources Inc. (TSXV: BEX) through three, large-scale, joint-venture properties including Grey River, Golden Hope and Kepenkeck in Newfoundland. Sokoman controls, independently and through the Benton alliance, over 150,000 hectares (>6,000 claims – 1500 sq. km), making it one of the largest landholders in Newfoundland, in Canada’s newest and rapidly-emerging gold districts. The Company also retains an interest in an early-stage antimony/gold project (Startrek) in Newfoundland, optioned to White Metal Resources Inc., and in Labrador, the Company has a 100% interest in the Iron Horse (Fe) project which has Direct Shipping Ore (DSO) potential.

I’m still trying to figure out what metal or minerals Newfoundland & Labrador doesn’t have as it seems the region has an abundance of everything. Along those lines, the Golden Hope JV with Benton made the first high-grade lithium discovery in Newfoundland in September, 2021. The first assay results from the drilling program that tested the Kraken pegmatite field returned an average of 0.95% Li₂O over 8.40 m with grades as high as 1.76% Li₂O. Not bad when you are looking for gold. The Alliance has proposed a C$3 million budget for a summer drill program testing as many of the known pegmatite dykes as possible, with up to 30-40 holes planned. Camp setup and drill mobilization are expected in mid-June.

But as interesting as this is, for today I think will focus on where the bulk of the drilling is being done, and that’s the Moosehead Gold Project where visible gold has been intersected in drilling over a 2 km strike length. From 2018-2021 Sokoman completed ~73,000 m of drilling with ~360 holes, leading to the discovery of 4 significant zones, all of which remain open. Highlights from these zones rival some of the findings from their neighbors to the east, New Found Gold Corp. (TSXV: NFG | AMEX: NFGC) another Eric Sprott backed gold miner in Newfoundland:

Western Trend • MH-18-08 • 1.05 m @ 207.5g/t Au from 8.5 m; and 2.28 m @ 42.36 g/t Au from 33.1 m

Eastern Trend • MH-18-01 • 11.9 m @ 44.96g/t Au, including 5.65 m @ 93.56 g/t Au from 115.2 m

75 Zone • MH-21-23 • 44.8 m @ 17.56g/t Au, including 2.75 m @ 30.59g/t Au from 44.75 m

South Pond • MH-20-12 • 35.0 m of 26.87 g/t Au, including 2.15 m @ 60.59 g/t Au from 47.0 m

Heading into 2022 is where things get really exciting. Results last week, some of the first holes from the 100,000 m 2022 program, expanded the 75 Zone and essentially linked it with the main Eastern Trend/Footwall Splay mineralization (see picture below). In addition, MH-22-418, completed last week (assays pending) intersected the deepest occurrence of visible gold to date on the property at a downhole depth of 352 m.

Source: Sokoman Minerals May 19, 2022 Press Release

It would appear there will be a steady stream of drilling results coming from Sokoman Minerals over the following weeks and months, not only from Moosehead, but Golden Hope and Grey River with JV partner Benton Resources Inc. There is a lot going on at this well funded, junior gold (and now lithium) explorer. With a market cap of C$66 million it’s not hard to imagine plenty of upside when one of your comparables is New Found Gold at a market cap of C$1.2 billion.

In a recent InvestorIntel interview, Tracy Weslosky spoke with Peter Clausi, CEO and Director of CBLT Inc. (TSXV: CBLT), about CBLT’s ‘highly prospective’ lithium property in Manitoba and about its Coco-Estelle Deposit located in the Hemlo Gold Camp which hosts a historical resource of 53,700 tonnes grading 10.7 g/t gold.

In this InvestorIntel interview, which may also be viewed on YouTube (click here to subscribe to the InvestorIntel Channel), Peter Clausi provided an update on the drill program to explore lithium at CBLT’s Shatford Lake Property in Manitoba which is located close to the famous Tanco Mine. He went on to provide an update on CBLT’s Big Duck Lake gold project which also has historical high-grade zinc and copper. In the interview, Peter also provided an update on CBLT’s investee Ciscom Corp. which is due to close on its second acquisition and is in the process of becoming a reporting issuer.

To watch the full interview, click here

About CBLT Inc.

CBLT Inc. is a Canadian mineral exploration company with a proven leadership team, targeting lithium, cobalt and gold in reliable mining jurisdictions. CBLT is well-poised to deliver real value to its shareholders.

To learn more about CBLT Inc., click here

Disclaimer: CBLT Inc. is an advertorial member of InvestorIntel Corp.

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This presentation may contain “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements are based on the opinions and assumptions of the management of the Company as of the date made. They are inherently susceptible to uncertainty and other factors that could cause actual events/results to differ materially from these forward-looking statements. Additional risks and uncertainties, including those that the Company does not know about now or that it currently deems immaterial, may also adversely affect the Company’s business or any investment therein.

Any projections given are principally intended for use as objectives and are not intended, and should not be taken, as assurances that the projected results will be obtained by the Company. The assumptions used may not prove to be accurate and a potential decline in the Company’s financial condition or results of operations may negatively impact the value of its securities. Prospective investors are urged to review the Company’s profile on Sedar.com and to carry out independent investigations in order to determine their interest in investing in the Company.

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