Already the Americas’ largest pegmatite and the eighth-largest hard rock lithium deposit globally, Corvette has an inferred resource of 109.2 million tonnes at 1.42% lithium oxide for 3.8Mt of contained lithium carbonate equivalent.

The resource estimate is for CV5, a 4.6km-long pegmatite which remains open.

Patriot is planning to release a resource update in early August, which should coincide with managing director Ken Brinsden’s return to Australia for the Diggers & Dealers Mining Forum.

Speaking on a webinar this week, Brinsden said the update would include an increase in the size of the resource, an improvement in the confidence of the resource to indicated and a maiden resource for the CV13 pegmatite.

CV13, 2.9km along strike from CV5, has been defined as a 2.3km-long spodumene pegmatite, which remains open.

Patriot recently discovered a high-grade zone of 34.4m at 2.9% lithium oxide, including 21.9m at an eye-watering 3.58% lithium oxide.

“It’s a very important discovery and one we’re very, very keen to follow up,” Brinsden said.

‘Early stage’

Argonaut head of research Hayden Bairstow describes the exploration at Corvette as early stage.

“We see considerable potential to expand the resource over time, with extensions to the main CV5 deposit and the inclusion of regional targets at CV13, CV8, CV9, CV10, CV12 and CV14 all having the ability to add to the global resource at Corvette,” he said.

Patriot is also excited to drill the untested gap between CV5 and CV13.

Brinsden described the exploration potential as “amazing”.

“It shouldn’t surprise anyone that we’re making major discoveries,” he said. “There’s lots of exploration potential – and much more to come.”

The summer field season is underway and Brinsden said the company was still refining its exploration plans.

Development plans shaping up

Brinsden said the company was maintaining a disciplined balance between exploration and development.

Importantly, the indicated resource to be published next month will allow Patriot to release some early development numbers for Corvette.

A scoping study or preliminary economic assessment is due in the weeks after the release of the resource update.

“It’ll outline the combination of production targets, target mine life, feed rates in the plant, economic analysis, including capex and opex,” Brinsden said.

The study will be based only on the CV5 pegmatite.

Argonaut’s based case incorporates an open pit and underground development.

“We believe a combined 6.2Mt per annum mining rate could deliver a circa 1Mtpa spodumene production rate, at a capital cost of C$1 billion,” Bairstow said.

For context, Pilbara Minerals’ Pilgangoora mine, which Brinsden was instrumental in developing, was set to produce 660,000-690,000t of spodumene in FY24, rising to 1Mtpa in FY25.

In preparation for development, Patriot this week appointed John Drapack as director, studies and Cathryn Moffett as director, environment.

Former CEO and chief operating officer Blair Way has stepped down, but remains on the board as a non-executive director.

A 20km access road from the main highway to CV5 has recently been completed, while the expandable Shaakichiuwaanan camp has been installed.

“Both are significant pieces of infrastructure – not to be underestimated,” Brinsden said.

Corvette is also within 20km of an airport and existing hydropower lines.

Permitting

Patriot is into its third season of environmental baseline work, which will support the submission of an environmental and social impact assessment (ESIA).

The company already has a strong relationship with the region’s First Nations, the Cree people.

Indigenous people are involved in the approvals process under a treaty signed in 1975.

The submission of an impact benefit agreement along with a positive recommendation from the committee assessing the ESIA will allow Patriot to begin construction.

Brinsden said the permitting process was “well defined and constructive”.

“I’ve been won over,” he said, adding that there were lessons to be learned in Australia.

Lithium market

Patriot is aiming to begin construction in early 2028 with commissioning and first production in 2029.

Based on projected lithium supply and demand, that could prove to be impeccable timing.

Fastmarkets expects a modest deficit to kick in from 2028, which could translate to an uptick in pricing.

“Given our forecast for a less-tight market, we expect the price to remain around US$15-20 per kilogram out to 2028,” the forecaster said.

“We forecast large deficits after 2029 and expect the price to rise to incentivise production to come online to fill these potential gaps.”

“Can you expect projects like Corvette and other key projects globally that have the combination of scale and low strip ratio, low power cost, well-located, all that type of thing, to be able to make money through the cycle as compared to a lot of other projects developed globally?” Brinsden said.

“I think the answer is yes. It’s a fantastic opportunity. And the implication is that those assets are going to be worth a lot more in the future.”