Lancaster Resources (LCR.C) is a junior explorer focusing on transition metals to take advantage of the global shift towards decarbonization and electrification. The goal is to produce climate-positive lithium. The current focus is on its Alkali Flat Project, located in southwestern (and mining friendly) New Mexico, USA, within the Animas Valley.
The project’s proximity to major transport routes, including being approximately 160 miles east of Tucson, Arizona, and 175 miles west of El Paso, Texas, via the Interstate 10 highway which runs through the project area, makes access and logistic operations optimal for exploration and eventual production. Recently, the Company announced high lithium values from its geochemical sampling program on the project.
In late July, Lancaster announced it is expanding its lithium exploration to Quebec’s James Bay region. Lancaster announced it has entered into a binding letter of intent dated July 23rd 2023 to acquire 100% of the Trans-Taiga Lithium Project in the Eeyou Istchee James Bay region of Quebec.
Today, the Company announced it has engaged KLM geophysics to conduct a magneto-telluric (MT) survey at its Alkali Flat Lithium Project in Lordsburg, New Mexico to target highly conductive statigraphic layers to further delineate drill targets in a highly prospective area on the NE part of the property. The property is adjacent to Arizona Lithium’s Lordsburg Brine Project.
“Drawing on our recent exploration results, we’ve pinpointed a promising location that we suspect hosts a lithium brine-rich aquifer,” shares Andrew Watson, Lancaster’s Vice President of Engineering and Operations. “Our next steps will involve integrating MT survey data with the dataset from Arizona Lithium’s published exploration results and our own geochemical and conductivity findings. This systematic approach should allow us to refine our drilling targets with the goal of discovering a lithium brine-filled aquifer.”
The target area is approximately 8 miles north of the Lightning Dock Known Geothermal Resource Area. These areas around the world are acknowledged as a possible main source of lithium for brines and sediments in lakebed basins, similar to the Lower Animas Basin, where the Alkali Flat Lithium Project is located.
The MT program will use naturally occurring electromagnetic sources like solar flares and lightning, to measure variations in magnetic and electric fields. This survey will be comprised of three east-west lines, spaced ~500m apart, with receivers positioned every 500m. A total of 15 receiver stations are expected. These MT sites will function overnight, recording data for at least 14-16 hours. After the data gathering session concludes, all the equipment will be collected and any excavated holes will be refilled with soil, leaving little to no trace. The results will show a 2D and 3D model of subsurface conductivity that will inform geological interpretation and lithology and enhance target precision for drilling locations planned for fall/winter 2023.
This non-invasive MT survey with a minimal carbon footprint is in line with Lancaster’s commitment to sustainable practices. The MT survey will be conducted once permitting is in place.
For a deeper dive into Lancaster Resources, check out Chris Parry’s recent article titled, “Lancaster Resources (LCR.C) is a tightly coiled ESG-ready lithium play with everything going for it“. In the article, he summarizes why Lancaster Resources is one to watch including:
- Good land with potential
- Good neighbours working hard
- A great spot, right between three states
- A jurisdiction that doesn’t mind a mine
- Respected bodies that know the business
- An ESG strategy that will resonate with younger investors
- An industry that is growing hard and fast
- New laws making domestic production far more beneficial to end users
- A CEO who hustles Every. Single. Day. to get that business plan slamming
- And a low market cap and tight share structure where there’s room for everyone to make money.
The stock hit lows of $0.16, but with a further breakdown, Lancaster Resources has printed new all time record lows at $0.15. The question going forward is whether the selling pressure will exhaust and when. From a technical analysis perspective, this would lead to the beginning of a new trend if our triggers are confirmed.
From a fundamental perspective, we have upcoming catalysts this summer including the phase 1 seismic program in late summer. From a technical perspective, we would want to see either the development of a range indicating that selling pressure has exhausted. From a price point perspective, a close back above $0.16 is key as this is the current resistance (price ceiling) for the stock. A failure to close above this price level could lead to further sell off. A close above $0.17 is what could get the stock to print some upside momentum as this would be taking out the current lower high.
