Forrestania Resources has completed the previously announced acquisition of a 50% stake in the Hydra lithium project in northern Quebec, Canada, thereby finalising a joint venture (JV) with ALX Resources.
The Hydra lithium project is made up of eight sub-projects that span 29,263ha. These include Volta (4,752ha), Echo (5,566ha), Nike (2,462ha), Sprite (3,437ha), Cobra (4,249ha), Viper (1,280ha), Python West (4,298 ha), and Python East (3,218ha).
According to Forrestania Resources, the location of the sub-projects is within a world-class lithium exploration district that hosts projects such as James Bay Lithium owned by Allkem, Rose owned by Critical Elements Lithium, and Whabouchi owned by Livent Corporation and Investissment Québec.
Forrestania Resources MD Michael Anderson said: “We are very pleased to have formalised the joint venture with ALX to become 50:50 partners in the Hydra Lithium Project.
“From our perspective securing a strategic foothold in the dynamic James Bay lithium space is hugely complementary to our existing project portfolio back at home in Western Australia and provides us with significant additional discovery potential. We very much look forward to collaborating with ALX to unlock that potential.”
ALX Resources recently completed the staking of eight sub-projects within the last 12-18 months. Prior to forming the joint venture with Forrestania Resources, ALX Resources held 100% ownership of the Hydra lithium project.
Exploration costs for the 2023 field season are estimated at C$900,000 ($677,767.5). The terms of the agreement allowed Forrestania Resources to earn a 50% interest in the lithium project by matching ALX Resources’ staking and exploration commitment.
The parties will jointly explore and manage the properties. ALX Resources will serve as the operator and receive an industry-standard administration fee.
Ongoing efforts include compiling historical data at the Hydra lithium project and other prospective areas in the region for LCT pegmatites.
ALX Resources plans to conduct airborne and photogrammetric surveys to gather additional geophysical, topographic, and aerial visual information to assist in locating and mapping pegmatite bodies.
Fieldwork is scheduled to resume in the coming weeks across various sub-projects, focusing on systematic prospecting, geological mapping, and geochemical sampling. While ALX Resources will be primarily responsible for the exploration work, members of the Forrestania team will also participate in the field activities.
