The key edge pushing Zigzag to the top of the lithium exploration pack

As always, the last couple of weeks have been busy ones for First Class Metals.

Here in the UK, I’ve been presenting the company across London alongside our CEO Marc. Meanwhile, work on the ground is continuing across many of our projects in Canada where we’re moving towards drill-ready status. 

There is, in short, a lot for me to talk about over the next few newsletters. 

This week, however, I’d like to focus in particular on our lithium project – Zigzag.

As highlighted earlier this month, encouraging sampling results are reinforcing our belief in the project’s potential for hosting economic, pegmatite-hosted mineralisation.

It’s all adding further promise to the prospect of ultimately making a discovery. And were this to take place, I feel Zigzag would offer something many other lithium exploration projects do not… 

A highly in demand metal in an ideal jurisdiction.  

Positive backdrop
As I’ve written before , the reason so many companies are now exploring for lithium is simple. 

Demand for the metal is soaring due to its key role in the lithium-ion batteries powering the electric vehicle and renewable energy revolutions. It’s increasing so much, in fact, it's outpacing the corresponding growth in supply, meaning prices are poised to rise over the long term. 

It’s the perfect dynamic for explorers. 

And as you’d expect, this was very much on our minds when we entered the option to acquired Zigzag last year.  

Where we feel the project has an additional edge on much on the global competition, however, is that it is not just prospective for a very attractive metal… but it is situated in a very attractive location for that very attractive metal. 

Let me explain. 

Like all of our projects, Zigzag is based in the Canadian province of Ontario. And speaking generally, this is an excellent territory for explorers like ourselves. 

It offers geopolitical stability… excellent geology… first-rate infrastructure… and a highly supportive, pro-mining regulator. No wonder its mining industry is so large, single-handedly producing 20% of Canada’s total metal last year. 

When it comes to lithium specifically, though, Ontario’s location gives it another extremely important benefit: direct access to North America’s rapidly expanding EV market. 

Yes, rather than relying on the likes of China here, Canada and the US are looking to bring the entire supply chain home. 

Think of any automaker. The chances are it has already built or is beginning to build a North American EV manufacturing site or EV battery manufacturing plant.

The map below from CIC energiGUNE illustrates what I mean well.

The issue now, however, is securing domestic supply of the metals actually needed to build these batteries and cars.

There’s a number of examples. But few are more urgent than lithium.

Consider, for example, that the US currently accounts for 1% of global lithium production. Canada does not produce any at all as it stands.

There’s a reason why the metal commonly referred to as “white gold” in these parts. And there’s also a reason why both Canadian and US government have designated lithium a critical mineral and are pouring billions into building up domestic production.

Perhaps you can already see where I’m going here. But the net result for us is any lithium discovery we make at Zigzag is likely to fetch a far higher price tag than one in another country.

After all not only is there a guarantee of strong support when it comes to developing that discovery into a mine…

But the value of any lithium that is eventually produced is likely to fetch a premium over that from less “friendly” countries like China.

Rounding up
Now, I don’t want to get ahead of myself. My point is to illustrate why we’re so excited about Zigzag…

• Early work suggests a great deal of lithium discovery potential

• The value of any lithium we discover is likely to court a premium value

• We are now powerfully pushing towards drilling

As work continues, we will learn more about the project’s true potential. As we do so, I look forward to updating you in further issues of this newsletter.