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Lithium confirmed at Golden Hope in Newfoundland

Sprott-backed explorers Benton Resources and Sokoman Minerals say they’ve confirmed the discovery of lithium in Newfoundland at their Golden Hope joint venture, which was staked earlier this year for its gold potential.
Lithium confirmed at Golden Hope in Newfoundland Lithium confirmed at Golden Hope in Newfoundland Lithium confirmed at Golden Hope in Newfoundland Lithium confirmed at Golden Hope in Newfoundland Lithium confirmed at Golden Hope in Newfoundland

A spodumene sample from Benton Resources and Sokoman Minerals’ Golden Hope JV in Canada grading 1.82% Li2O

Ngaire McDiarmid


The pair said the results from 35 of 58 follow-up samples had confirmed the pegmatites carried significant lithium values, with 31.4% returning more than 1% Li2O.

"We are very pleased to have unequivocally verified high-grade lithium mineralisation at Golden Hope, the first such significant occurrence in Newfoundland," Sokoman president and CEO Tim Froude said.

"While continuing to explore the pegmatites for lithium and associated elements, the claims were originally staked for gold and we are presently processing and merging our recently-flown airborne data with pre-existing data to highlight gold targets on the property."

Sokoman is one of the largest landholders in Newfoundland, where it has its flagship Moosehead gold project.

Golden Hope is one of three projects it and Benton are exploring through a strategic alliance announced in May.

The alliance said it also discovered high-grade beryllium values at Golden Hope, with two grab samples grading plus-5,000ppm Be, and associated anomalous lithium, cesium, rubidium and tantalum values, 2km from the lithium discovery which Benton president and CEO Stephen Stares said showed the island's vast potential.

"Although this is the first discovery of lithium in Newfoundland, the geological environment and setting to discover these types of large systems have already been proven and discovered in the Appalachian belt," he said.

Sprott is Sokoman's largest shareholder and invested about C$5 million in a restructured $6.5 million placement priced at 26c in March, giving him about 19.7% on a non-diluted basis. 

He invested $2 million in Benton in a $2.25 million raising at 20c per unit in May to give him an initial 8.6% of the company on a non-diluted basis.

Benton (TSXV: BEX) has spanned 13.5-25c over the past year and closed down 2.3% on Friday to 21c, valuing it at $24.3 million (US$19 million).

Sokoman (TSXV: SIC) has ranged between 12-78c over 12 months and rose 4.5% to close at 35c, capitalising it at $70 million (US$55 million).