Mont Royal Exits Wapatik Gold-Copper Option to Focus on Lithium Growth
Mont Royal Resources confirms a continuous lithium mineralised zone at its Bohier Lithium Project in Quebec, highlighting promising exploration potential while stepping back from its Wapatik Gold-Copper option.
- Significant lithium mineralisation intersected over 200m strike and 70m depth at Bohier
- High-grade assay results include 21m at 1.39% Li2O and 7.65m at 1.89% Li2O
- 2024 drilling program completed safely and within budget with eight holes totaling 744m
- Option to earn 50% interest in Wapatik Gold-Copper Project lapsed amid challenging market conditions
- Company holds $1.75 million cash and received a C$534k tax rebate for exploration expenditure
Strong Lithium Results from Bohier Drilling
Mont Royal Resources (ASX: MRZ) has delivered encouraging assay results from its 2024 summer drilling campaign at the Bohier Lithium Project in Quebec, Canada. The program, comprising eight drill holes totaling 744 metres, confirmed a continuous lithium mineralised zone extending over 200 metres in strike length and 70 metres in depth. Notably, several holes intersected high-grade spodumene mineralisation, including 21 metres at 1.39% Li2O and 7.65 metres at 1.89% Li2O, underscoring the project's potential as a significant lithium source.
The drilling targeted the BHP-2 pegmatite and its western extension, with results indicating complex geological structures such as a south-east dipping dyke that appears folded at depth. This new structural understanding marks an evolution from previous models and will guide future exploration efforts. The mineralised zone remains open laterally, and several targets within the Northern Lights tenements remain untested, suggesting further upside potential.
Strategic Focus and Project Portfolio Update
While advancing its lithium exploration, Mont Royal has elected not to continue with its option to earn an initial 50% interest in the Wapatik Gold-Copper Project. The decision reflects mixed results from prior drilling campaigns and challenging commodity market conditions, particularly in nickel. The option lapsed in November 2024, allowing the company to concentrate resources on its lithium assets, notably the Northern Lights project area, which includes Bohier and the Eastmain Leran prospects.
Recent reconnaissance at the Leran Project identified new spodumene-bearing boulders at the Petit Léran prospect, hinting at additional lithium mineralisation sources. Follow-up exploration is planned to pinpoint these sources and expand the company's lithium footprint in the region.
Financial Position and Next Steps
Mont Royal ended the December quarter with a solid cash position of $1.75 million and maintained strict cost controls. The company also received a tax rebate of C$534,000 from the Quebec government related to exploration expenditures, providing additional financial flexibility. Exploration expenditure for the quarter was approximately $307,000, focused on drilling and prospecting activities.
Looking ahead, Mont Royal plans to refine its structural model for the Bohier pegmatite and undertake further drilling to test untested targets and lateral extensions. The evolving geological insights and promising assay results position the company well to unlock further value from its lithium projects in a globally strategic jurisdiction.
Bottom Line?
Mont Royal’s decisive pivot to lithium exploration at Bohier sets the stage for a potentially transformative growth phase amid evolving market dynamics.
Questions in the middle?
- How will Mont Royal prioritise and fund the next phase of drilling at Bohier given current cash reserves?
- What impact will the lapse of the Wapatik option have on the company’s longer-term diversification strategy?
- Could further structural complexities at Bohier reveal higher-grade zones or larger mineralised volumes?
