Impact: Slightly Positive
Critical Elements Lithium released drill results from its 100%-owned Rose Li-Ta project in Quebec and provided an update related to engineering, financing and development of the project. A 13-hole (2,832m) geotechnical drill program with a tightened drill spacing provided greater confidence in the resource block model on the eastern portion of the deposit. We note that it has been some time since CRE has completed drilling at the project. While drill results were rather good, comparing favourably to existing resources, and could help improve confidence in existing numbers, we believe that drilling is secondary to development at this stage. We expect that management focus remains on project financing, including the likely introduction of a major strategic partner. We anticipate the estimated C$580M initial capex to largely be covered by strategic investment and debt. Meanwhile, engineering continues to maintain timelines such that production remains on track for late 2025.