Loyal Lithium Secures Hidden Lake and Uncovers New Lithium Zones in North America

Strategic Consolidation Strengthens Loyal Lithium’s North American Footprint

Loyal Lithium Limited (ASX: LLI) has marked a pivotal quarter ending December 2024, highlighted by the execution of a definitive agreement to consolidate 100% ownership of the Hidden Lake Lithium Project in Canada’s Northwest Territories. This deal not only expands Loyal Lithium’s asset base but also brings Patriot Battery Metals (ASX: PMT) onboard as a substantial shareholder, with former Patriot CEO Blair Way joining Loyal Lithium’s board. This strategic partnership infuses the company with valuable regional expertise and aligns interests for growth in the burgeoning North American lithium supply chain.

Robust Exploration Progress at Trieste Lithium Project

The Trieste Lithium Project in Quebec continues to deliver encouraging results, underpinning Loyal Lithium’s exploration momentum. The project now hosts eight discrete spodumene-bearing lithium pegmatite dykes, with cumulative outcropping length reaching approximately 1.9 kilometres. Notably, Dyke #06 was exposed with an impressive 65-metre width, while two new dykes were discovered during 2024 field mapping, guided by innovative 3D Mobile Magnetotellurics (MTm) geophysical surveys.

Drilling campaigns have confirmed thick intervals of high-grade lithium mineralisation near surface, including standout intercepts such as 40.0 metres at 1.2% Li2O from Dyke #01 and 31.8 metres at 2.2% Li2O from Dyke #05, which also contains tantalum. These results validate the 3D geophysical model and highlight three distinct high-resistivity metasediment-hosted lithium trends extending over 11.5 kilometres, suggesting significant upside potential.

Scotty Lithium Project: A Large-Scale Sediment-Hosted Target in Nevada

Loyal Lithium’s Scotty Lithium Project in Nevada, USA, remains a key asset with a robust exploration target estimated between 460 million and 837 million tonnes at lithium grades around 1,150 ppm. Its proximity to Tesla’s Nevada Gigafactory and existing infrastructure enhances its strategic value. While the exploration target remains conceptual, the project’s near-surface mineralisation and adjacency to Nevada Lithium’s Bonnie Claire Project, which recently reported high lithium and boron recoveries, underscore its potential to support traditional mining development.

Financial Position and Outlook

Financially, Loyal Lithium is well-positioned with over A$5.5 million in available funding, including cash reserves and expected tax credits. The company reported exploration and evaluation expenditure of A$0.88 million for the quarter, primarily directed at advancing the Trieste and Hidden Lake projects. Despite active spending, the company maintains a strong cash position of approximately A$3.06 million at quarter end, supporting ongoing and future exploration activities well into 2025.

The company’s disciplined approach to project advancement aims to minimise shareholder dilution while pursuing accretive opportunities. The recent consolidation of Hidden Lake and the addition of Blair Way to the board signal a strategic focus on leveraging regional expertise and expanding resource potential.

Positioning for the Emerging North American Battery Supply Chain

Loyal Lithium’s portfolio, spanning the Trieste, Hidden Lake, and Scotty projects, places it at the heart of the emerging North American lithium supply chain, a critical sector amid global electrification trends. Collaborations, such as the memorandum of understanding with Winsome Resources on the Trieste project, aim to optimise environmental and stakeholder outcomes while advancing low-cost domestic lithium supply.

As the company continues to refine its resource models and expand exploration targets, the market will be watching closely for further assay results, resource updates, and potential development milestones that could enhance Loyal Lithium’s standing in the competitive lithium sector.