The race to secure a sustainable future powered by green energy continues to intensify, driving global demand for critical minerals vital to this transition. Few countries are as blessed with such an abundance of these resources as Canada.
From lithium to uranium, copper to rare earth elements, Canada’s geological wealth is unmatched. This bountiful nation could potentially transform into one of the world’s most significant producers of minerals vital to our energy transition.
Lithium: Fuel for the Electric Revolution
Lithium, the lightest of all metals, plays an integral role in the manufacture of batteries for electric vehicles (EVs) and renewable energy storage, making it a linchpin of the green revolution. The Canadian landscape, especially in Manitoba, Quebec, Alberta, and Saskatchewan, hosts an impressive array of lithium resources.
Manitoba is particularly noteworthy, with its Winnipeg River–Cat Lake pegmatite field housing the world-class Tanco lithium-cesium-tantalum deposit. According to Natural Resources Canada, the nation holds an estimated 2.9 million tonnes of lithium resources, equivalent to 2.5% of global reserves.
Alberta is another lithium hotspot. Its lithium brine reserves present a strong value proposition for metal extraction, with an estimated 10.6 million tonnes of lithium carbonate equivalent. Advanced projects across Canada, including those focused on extracting lithium from unconventional sources like oilfield brines and industrial wastewaters, promise to increase Canada’s lithium production significantly.
Though production has been limited historically, several companies are gearing up to boost their lithium output. These include Sayona Québec, a joint venture planning to restart the North American Lithium mine, and Pallinghurst Group, set to revive the Whabouchi Mine in Quebec. Such developments could see Canada transform from a net lithium importer to a significant global contributor.
A growing number of Canadian junior explorers continue to search for the next big lithium deposit including Azincourt Energy (AAZ.V) and Beyond Lithium (BY.C).
The Lithium Players
Azincourt Energy is taking a multi-pronged exploration approach with its Big Hill Lithium Project located in the Province of Newfoundland.
Big Hill was optioned by Azincourt in the middle of April from Atlantis Battery Metals. Azincourt has the option to earn up to 75% interest in the 7,500 hectare Lithium-Cesium-Tantalum exploration property.
The property is located just five miles south of the Benton/Sokoman JV partnership discovery of the Kraken Lithium Pegmatite Field where results returned 1.04% Li2O over 15.25 metres, 8.94 metres of 0.95% Li2O, and 5.5 metres of 11.6% Li2O.
Recent prospecting at Big Hill has identified four known target areas, known as the MK, Ridge, River and Road Targets.
The area around Big Hill is no stranger to exploration where the Hope Brook Mine, located southwest of the property, operated from 1987 to 1997, producing 752.163 ounces of gold.
Beyond Lithium was previously known as Beyond Minerals, but just a few weeks ago, the company narrowed its focus after a prize acquisition of highly prospective properties in Ontario which garnered the company options on 57 properties totalling 125,751 hectares and complete ownership of three properties through staking which totalled 9,104 hectares, bringing the company’s lithium land portfolio in Ontario to 66 properties covering a whopping 147,975 hectares.
Beyond Lithium intends to focus its exploration during the 2023 season on several projects which includes among other potential targets, the MacDowell and Margot Lake properties in the Frontier Lithium District, the Cosgrave and Gathering Lake properties in the Georgia District, as well as Case Lake North and Case Lake South properties in the Case Lake District.
In order to accomplish this task, the company announced the recent closure of a $1.38 million CAD flow-through financing.
Uranium: Powering the Nuclear Option
Beyond lithium, no pun intended, Canada’s uranium reserves are another essential asset in the green energy transition. Nuclear power is a low-carbon, high-capacity form of energy, and uranium is its primary fuel.
Most of Canada’s uranium reserves are found in the Athabasca Basin of northern Saskatchewan, boasting grades 10 to 100 times greater than the world average. With known uranium resources of 606,600 tonnes of U3O8, Canada has a substantial role to play in meeting the world’s growing demand for this critical mineral.
As such juniors are flocking to the basin including Standard Uranium (STND.V), Skyharbour Resources (SYH.V) and Azincourt Energy (AAZ.V).
The Uranium Players
Standard Uranium is a microcap explorer with assets in the Athabasca Basin with their Atlantic, Canary and Ascent Projects in the northeast region, Davidson River in the southwest part and Sun Dog in the northwest section of the Athabasca Basin.
The company recently announced a $2.0 million non-brokered private placement with a combination of non-flow-through units of the company at $0.035 per NFT unit and charity flow-through units of the company at $0.05 per FT unit.
Standard plans to use the proceeds for exploration and working capital purposes. This one has a lot of room for growth potential but carries the commensurate level of risk.
Skyharbour Resources holds 24 projects in its uranium portfolio covering over 500,000 hectares of mineral claims. The company’s flagship Moore Uranium Project was acquired from Denison Mines, who also happens to be a larger strategic shareholder in Skyharbour.
Moore is located 15 kilometres east of Denison’s Wheeler River project and 39 kilometres south of Cameco’s McArthur River uranium mine.
The Moore project is advanced with high-grade mineralization at the Maverick Zone with drill results highlighted at 6.0% of U3O8 over 5.9 metres including 20.8% U3O8 over 1.5 metres at a vertical depth of 265 metres.
Skyharbour does work its own properties, but company CEO, Jordan Trimble, has judiciously spread the company’s wings through strategic JV partnerships which include industry-leader Orano Canada at the Preston Project.
Speaking of Preston and JV partnerships, Skyharbour has also penned a JV with Azincourt Energy at its East Preston Project.
Azincourt Energy, as mentioned earlier, is multipronged and through its business relationship with Skyharbour, also has its hands in the uranium world.
East Preston is proximal to Fission Uranium’s Triple R deposit as well as NexGen’s Arrow Deposit. The project has multiple high-priority drill targets identified within multiple prospective exploration corridors.
The latest recent drill program at the project consisted of 24 holes. This drilling confirmed basement lithologies and graphitic structures are incredibly similar to the Patterson Lake South-Arrow-Hook Lake/Spitfire uranium host rocks and setting.
A Cornucopia of Critical Minerals
Canada’s geological bounty extends beyond lithium and uranium. The government recognizes a diverse range of critical minerals, from aluminium and copper to cobalt and zinc, each crucial for various sectors, including EV batteries, aerospace, electronics, and renewable energy technologies.
For example, in 2021, Canadian mines produced 541,648 tonnes of copper, an integral component in electrical wiring and motors due to its high electrical conductivity. Meanwhile, Canada’s reserves of rare earth elements, essential for manufacturing permanent magnets for wind turbines and electric vehicles, stand at over 15.1 million tonnes of rare earth oxide.
The Path Forward: Canada’s Green Mineral Revolution
Canada is uniquely positioned with an abundant supply of critical minerals necessary for the global transition to a greener future. However, leveraging this potential will require focused and strategic planning, including responsible mining practices, advanced technological implementation, streamlined regulatory frameworks, and strategic international partnerships.
The race for green energy is a marathon, not a sprint. But, armed with a wealth of critical mineral resources, Canada is ready to make significant strides toward a sustainable future.
*Full disclosure: Azincourt Energy, Standard Uranium, Beyond Lithium and Skyharbour Resources are Equity Guru marketing clients
