Chariot Corporation (ASX:CC9) witnessed a remarkable 35% increase in its share price yesterday, closing at 70 cents with $700,000 in stock trading volume.
And the positive results have been continuing today, currently trading above 6% higher at 74.5c (2:00pm AEDT).
CC9 listed on the ASX in late October, and while no new developments have been reported, the recent announcement of the arrival of a drill rig at CC9’s flagship Black Mountain Project in Wyoming, USA, has been driving investor interest over the past two weeks.
The initial phase 1 program at the Black Mountain Project is primarily focused on identifying spodumene-bearing LCT pegmatite dykes within a 1-kilometer-long and 50 to 150 meters wide zone. This phase was initiated following promising assay results from 22 rock chip samples, with the highest lithium concentration recorded at 31,018 ppm Li (equivalent to 6.68% Li2O).
Drilling operations have commenced, with the first round of assay results expected to be disclosed in January of the following year, generating considerable anticipation within the market.
Chariot Corporation’s Managing Director, Shanthar Pathmanathan, recently delivered a webinar presentation in partnership with Sharecafe’s Hidden Gems, providing insights into CC9’s strategic vision and the prospects of the Black Mountain Project. The presentation is available for viewing here.
CC9 holds a significant landholding for lithium exploration in the United States and has various joint ventures, farm-outs, and optioned projects. Nevertheless, the primary focus remains on the 2-square-kilometer Black Mountain Project in Wyoming, an emerging hard rock province.
What makes the Black Mountain Project unique is its unexplored potential. Despite the discovery of sizable spodumene crystals with high lithium concentrations back in 1997, the area has never been subject to drilling. Early-stage exploration efforts have consistently returned impressive assays, with rock chips yielding up to 6.68% Li2O, indicating the presence of high-grade lithium deposits.
Pathmanathan draws a comparison between the Black Mountain Project and Liontown’s Kathleen Valley before it underwent drilling, emphasising the presence of 40 outcropping pegmatites across a 1.5-kilometer-long strike on the mountain. The true extent of these deposits, including their depth, remains unknown and will only be uncovered through drilling.
Additionally, the Black Mountain Project has garnered interest from strategic players, including a major car manufacturer and one of the world’s largest iron ore and mining companies, although specific details remain undisclosed.
The intriguing story of how CC9 acquired the Black Mountain Project adds to its appeal. When the project initially surfaced, several major lithium companies were already exploring its potential. In a bold move, CC9 sent a crew to stake claims in challenging winter conditions, securing 89 claims surrounding the two central claims of the project.
Although a NASDAQ-listed lithium giant initially won the auction for these central claims, they later withdrew from the deal after understanding CC9’s strategic intentions. CC9 ultimately acquired these crucial claims for $4 million USD, along with a royalty, completing the puzzle of the Black Mountain Project.
CC9 has now launched a maiden 4,900-meter drilling campaign, targeting the central portion of the Black Mountain pegmatite dike swarm. This region encompasses a 1,000-meter-long zone with a width exceeding 100 meters, containing potential LCT pegmatite sub-crop and outcrop. The market eagerly awaits the initial drilling results, expected to be revealed in January.
Shanthar Pathmanathan’s commitment to the lithium industry stems from his background as an oil and gas investment banker at Macquarie. He sees parallels between the lithium market today and the early days of oil exploration in the United States. His belief in investing with conviction, even during downturns, has shaped CC9’s journey.
Pathmanathan’s dedication is evident in his transformation of CC9, investing $14.8 million to assemble its current portfolio and divesting other assets to focus on lithium exploration. With the largest lithium exploration landholding in the United States, CC9 is positioning itself as a pioneer in this evolving industry, offering historical discoveries and abundant opportunities.