Zacks Small Cap Analysis – FMST: Foremost Lithium is Conducting an Ongoing Winter Drilling Program at Zoro Property: constructive assay outcomes at Dyke 1 extends identified mineralization at depth. Latest personal placements present gross proceeds of over CAD$3.0 million. – Cyber Tech

By Steven Ralston, CFA

NASDAQ:FMST

READ THE FULL FMST RESEARCH REPORT

EXECUTIVE OUTLINE OF RECENT EVENTS

Winter Drill Program at Zoro Property (in progress)

A 30-hole (7,500m) winter diamond drill program on the Zoro Property commenced in the course of the first week of February 2024. So far, the corporate has reported the completion of 10 drill holes (roughly 2,100m), together with choose assay outcomes. Two drill holes intersected mineralized lithium zones at depth in an space beforehand unexplored, roughly between 15m-100m beneath prior drill holes. The cumulative size of intersected lithium mineralization was 25.92m. As well as, the thicknesses (size of intersections) exceeded expectations.

Financings

Between March and April 2024, two tranches of a personal placement closed, which in complete consisted of 436,122 Circulation-By means of Models and 152,941 Frequent Inventory Models. Whole gross proceeds had been CAD$3,084,397.

In late February 2024, Foremost Lithium (NASDAQ:FMST) submitted a $10 million proposal to the Authorities of Canada’s CMIF (Important Mineral Infrastructure Fund) to fund the development of a 9.5km street between the corporate’s Zoro and Jean Lake properties, together with a connection to an current roadway.

RECENT EVENTS

Winter Drill Program at Zoro Property (in progress)

Administration commenced a 30-hole (7,500m) winter diamond drill program on the Zoro Property in the course of the first week of February 2024, starting with drilling on the two most outstanding dykes (Dyke 1 and Dyke 8). These two dykes stay open at depth and alongside strike. The drill program contains each exploratory & infill drilling and is being carried out beneath a multi-year work allow which is legitimate till April 26, 2026. The two 1/4-year work allow permits administration to cost-effectively implement future exploration plans. So far, the corporate has reported the completion of 10 drill holes (roughly 2,100m), together with choose assay outcomes.

Using a drill rig and crew offered by Rodren Drilling, the preliminary six (6) holes (FL 24-01 – FL 24-06) focused areas round Dyke 8, which has an outlined strike over 120m with widths between 5m-to-15m and a depth of 157m. Dyke 8 is open at depth and alongside strike. As well as, there might have a possible relationship with Dyke 1 alongside strike.

Assay outcomes from drill cores from the Dyke 8 space confirmed the presence spodumene-bearing pegmatite in two of the six drill holes (FL 24-001 & FL 24-002). The next 4 (4) holes (FL 24-007 – FL 24-010) focused Dyke 1, which presently has an outlined strike of 265m with widths as much as 40m and to a depth of 265m. Dyke 1 hosts the corporate’s Inferred mineral useful resource that’s estimated to include 9,700 tons Li₂O and 24,000 tons of Li₂O3 (lithium carbonate) at a cut-off of 0.3% Li₂O. Nonetheless open at depth and alongside strike, Dyke 1 is a lithium-bearing spodumene pegmatite that’s partially outcropped at floor.

On March 27, 2024, Foremost Lithium offered an preliminary evaluation of the drill program at Dyke 1, highlighting that 2 drill holes (FL 24-009 & FL 24-010) intercepted a cumulative size of 32.53m and 14.19m of spodumene-bearing pegmatite, respectively.

On April 8, 2024, the corporate offered assay outcomes from drill holes FL 24-009 and FL 24-010. The outcomes confirmed the presence of lithium mineralization over a cumulative size of 25.92m at depth in a beforehand unexplored space.

Highlighted intersected of spodumene-bearing pegmatite had been:

o Drill gap FL24-009 7.96m (1.03% Li₂O) beginning at a depth of 233.04m

o Drill gap FL24-009 5.02m (1.52% Li₂O) beginning at a depth of 235.98m

o Drill gap FL24-010 9.88m (1.09% Li₂O) beginning at a depth of 77.57m

o Drill gap FL24-010 5.37m (1.34% Li₂O) beginning at a depth of 180.73m

The first objective of the drill program is to develop the useful resource estimate of Dyke 1. Drill holes FL 24-009 & FL 24-010 intersected mineralized lithium zones at depth in an space beforehand unexplored, roughly between 15m-100m beneath prior drill holes that detected mineralization. As well as, the thicknesses (size of intersections) exceeded expectations.

Administration additionally needs to check for strike extensions of the Dyke 1 spodumene-bearing pegmatite, particularly the place a geological assessment by Dahrouge Geological Consulting has recognized step-out targets to check continuity of Dyke 1’s mineralization to the southeast. Further drilling is deliberate (no less than 5,400m within the present program) to higher outline and additional develop the identified zones of lithium mineralization, significantly at Dyke 1.

The Zoro drill program is being partially funded by the $300,000 grant awarded by The Manitoba Mineral Improvement Fund (MMDF) in January 2024 and personal placements of Models which closed in March and April of 2024. As well as, as much as CDN$3.0 million in 12-18-month credit score financing commitments have been secured in preparations with a number of the firm’s distributors to fund the drill applications at Zoro and Jean Lake.

Latest Financings

Non-brokered Personal Placements of Circulation-By means of and Frequent Share Models

On March 13, 2024, the first tranche of personal placements closed which consisted of 188,651 Circulation-By means of Models at CAD$5.88 every and 152,941 Frequent share Models at CAD$3.40 per Unit. Gross proceeds had been CAD$1,629,267.

Every Circulation-By means of Unit consisted of 1 (1) Circulation-By means of widespread share and one (1) warrant for a typical share exercisable at $4.00 per share till March 13, 2026. Every Frequent share Unit consisted of 1 (1) widespread share and one (1) warrant for a typical share exercisable at $4.00 per share till March 13, 2026. The gross proceeds from Circulation-By means of Models will likely be used for Canadian exploration bills.

On April 29, 2024, the second tranche closed which consisted of consisted of 247,471 Circulation-By means of Models at CAD$5.88 every. Gross proceeds had been CAD$1,455,129. Every Circulation-through Unit consisted of 1 (1) Circulation-By means of widespread share and one (1) warrant for a typical share exercisable at $4.00 per share till April 29, 2026.

Grant Acquired from Manitoba Mineral Improvement Fund

On January 4, 2024, Foremost Lithium introduced the receipt of a CDN$300,000 grant from the Authorities of Manitoba’s Mineral Improvement Fund (MMDF). That is the corporate’s third CDN$300,000 grant from the MMDF and is getting used to assist fund the winter drill program on the Zoro Undertaking. The MMDF awards these grants to stimulate exploration exercise for important minerals (like lithium), thereby sponsoring the event of the mining trade in Manitoba, whereas contributing to job creation and selling financial development within the province.

Different Financing Information

On February 28, 2024, Foremost Lithium introduced {that a} $10 million proposal was submitted to the Authorities of Canada’s CMIF (Important Mineral Infrastructure Fund), $1.5 billion fund to help clear power &transportation infrastructure tasks that promote the event vital mineral tasks in Canada. Foremost utilized beneath Stream 1, which helps pre-construction and venture growth actions for mineral tasks. Foremost Lithium’s proposal is to hunt funding for an enhanced transportation hall to the Snow Lake area, particularly, the development of a 9.5km street between the corporate’s Zoro and Jean Lake properties and connecting it to an current roadway.

Investor Outreach

So far throughout 2024, the corporate has participated

o in a panel presentation on the Vancouver Useful resource Funding Convention on January twenty first

o at PDAC on March fifth & sixth in Toronto and

o on the 2024 Planet Micro-Cap Showcase in Las Vegas on Might 1st

Winter Drill Program at Jean Lake Property

On December 19, 2023, the corporate introduced that 15-hole (2,500m) winter diamond drill program at its Jean Lake Lithium/Gold Property. Quickly thereafter in early January 2024, Foremost Lithium obtained a piece allow, which is legitimate till April 30, 2026. The two 1/4-year work allow permits administration to cost-effectively implement future exploration plans.

The upcoming drill program on the Jean Lake Lithium/Gold Property will goal the B-1 & B-2 spodumene-bearing pegmatite dykes to check the extent of mineralization laterally and down plunge with the purpose of higher understanding the emplacement mechanisms. There additionally will likely be drilling that may check for extra gold mineralization at depth based mostly on the eight (8) drill holes that intersected gold mineralization at depths as much as 110m beneath floor in the course of the drill program that was carried out between December 2022 and April 2023.

Valuation

There are over 30 junior mining lithium corporations with spodumene deposits within the Tier 1 mining jurisdictions of the U.S. and Canada. Many of those corporations are within the very early levels of exploration (geophysics, sampling, mapping, desk prime research, and so on.) with out having but put drill to floor.

In an effort to be selective, we tightened the sphere to corporations which have decreased exploratory danger by advancing the onerous rock lithium venture(s) past the very early stage to a sure level, particularly with 100%-owned properties having found over 15 confirmed spodumene-bearing pegmatite dykes, accomplished an MRE and carried out metallurgical research that show that the ore is amenable to provide battery-grade lithium focus. A few of these corporations are Patriot Battery Metals (OTCQX:PMETF), Important Parts Lithium (OTCQX:CRECF), Snow Lake Sources Ltd. (NASDAQ:LITM) and Foremost Lithium Useful resource & Know-how Ltd (NASDAQ:FMST). It’s noteworthy to look at that each one have been uplisted to both NASDAQ or the best tier of OTC markets, the OTCQX. Three juniors which have no less than drilled their Canadian onerous rock properties had been additionally added: Energy Metals Corp. (OTCQB:PWRMF), Rock Tech Lithium Inc. (OTCQX:RCKTF) and Winsome Sources Restricted (OTCQB:WRSLF).

At the moment, the P/B valuation vary of those comparable corporations is between 4.8 and 1.1. We consider that Foremost Lithium can attain no less than an trade common price-to-book valuation of three.3 instances e-book, which signifies a goal of $6.90 per share.

SUBSCRIBE TO ZACKS SMALL CAP RESEARCH to obtain our articles and experiences emailed on to you every morning. Please go to our web site for extra data on Zacks SCR. 

DISCLOSURE: Zacks SCR has obtained compensation from the issuer instantly, from an funding supervisor, or from an investor relations consulting agency, engaged by the issuer, for offering analysis protection for a interval of a minimum of one yr. Analysis articles, as seen right here, are a part of the service Zacks SCR gives and Zacks SCR receives quarterly funds totaling a most charge of as much as $40,000 yearly for these companies offered to or relating to the issuer. Full Disclaimer HERE.