![Winsome Resources shares are rising Monday after the discovery of large lithium deposits in Quebec](https://i-invdn-com.investing.com/news/LYNXNPEC180BO_L.jpg)
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QUEBEC – Shares of Winsome Resources Ltd (ASX:WR1) rose to $1.25 on Monday, following the company’s announcement of a significant initial Mineral Resources Estimate (MRE) for its Adina Lithium Project in Quebec. The first MRE has revealed an impressive lithium deposit, which is particularly rich in spodumene, a mineral critical to the North American electric vehicle (EV) supply chain.
The discovery outperformed Canaccord’s forecasts in July, which estimated 40 million tonnes at 1.2% lithium. Instead, the Adina project has revealed a 59 million tonne resource with a lithium content of 1.12%, making Winsome Resources a leading player in the North American hard rock lithium market.
Managing Director Chris Evans called the announcement a milestone for the company and indicated that further updates on the commodity are expected in early 2024. With around $69 million available at the end of October, Evans is optimistic about an increase in lithium prices from the second quarter of next year, despite current market fluctuations.
The company’s strategic involvement is still on pause as it awaits further updates on resources and results from various studies. Meanwhile, five drilling rigs are actively working at the Adina site in preparation for planned resource updates in the first half of next year and a scoping study/preliminary economic assessment (PEA) expected in the second half.
Evans addressed industry concerns by pointing to Canada’s robust regulatory framework and Winsome Resources’ strong financial position, which underpin the upcoming initiatives. He also noted that M&A trends in Western Australia could shift to Canadian regions such as Quebec, making them increasingly attractive within the lithium sector.
The Adina project’s MRE is based on extensive drilling campaigns, with further tests in preparation due to ongoing efforts. Winsome Resources is preparing for an ambitious drilling campaign that will exceed 50,000 meters in the coming year. This proactive approach suggests that the potential single-well mineable ore body could extend beyond the currently known strike length as exploration progresses.
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