Patriot Battery Metals Sees Shares Decline Despite Strong Resource Estimate for Corvette Property

Patriot Battery Metals (TSXV: PMET) reported on Sunday the company’s maiden resource estimate for the Corvette property in Canada’s James Bay region, which effectively countered criticisms raised by short seller firm Night Market Research.

The initial mineral resource estimate (MRE) indicates a substantial deposit of 109.2 million inferred tonnes (Mt) at 1.42% lithium oxide, with principal spodumene pegmatite bodies ranging from eight to more than 130 meters in thickness along a 3.7-kilometer strike length at the CV5 pegmatite. Moreover, the resource demonstrates potential for expansion, as the project remains open along strike and at depth for a significant portion of its length.

“We could not be happier with the result of this maiden mineral resource estimate at CV5, which will be the first of multiple resource estimates for the Corvette Property over the coming years. This Property is now officially host to at least one deposit that is definitely a world class asset with respect to the size, grade, and metallurgy when compared to its peers,” said CEO Blair Way.

Patriot highlighted that the resource estimate does not include other known spodumene pegmatite clusters on the Corvette property, yet is still the “largest lithium pegmatite mineral resource in the Americas and 8th largest globally.” A resource estimate for CV13 is slated for 2024, with exploration continuing on more than 20 km of prospective trend at the Corvette property.

The release of this news comes after a period of skepticism surrounding the property’s mineral resource, triggered by Night Market’s report earlier in the month, which highly criticized Patriot for delayed resource updates and speculated a significantly lower resource of just 73Mt at 1.28% grading for Corvette.

At the time, PMET’s Chairman Ken Brinsden blasted the short report for having been written “with a lot of speculation and potentially an objective in mind.”

In a statement accompanying the announcement, Patriot’s exploration vice-president, Darren Smith, emphasized that the results solidified CV5 as a “tier-one spodumene pegmatite asset.” He further highlighted the immense potential for growth, with the resource still open at both ends and to depth along a large portion of its length, indicating a clear path for further resource expansion. Additionally, Smith noted that several spodumene pegmatite clusters remained unexplored on the property, with over 20km of prospective trend yet to be investigated.

Looking ahead, the company plans to continue exploration along the strike, with further drilling scheduled for 2024 to establish additional MREs at other sites.

Despite the positive resource estimate, the company declined by more than 6% on the ASX by the time the closing bell rang today.

Information for this briefing was found via The West Australian, The Market Herald, and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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