Peny Project

Size: 11,191 hectares
Location: Manitoba, Canada
Target: Lithium Cesium Tantalum (LCT) Pegmatites, and Volcanic Massive Sulphides (VMS).
Development Stage: Greenfields Early Stage Exploration

Location and Access: The Peny property is located within the Snow Lake Mining District of the Province of Manitoba, Canada. The property is approximately 25 kilometres (km) east of Snow Lake, and accessible by helicopter only. Snow Lake is located approximately 240km from the regional centre of Thompson and located approximately 700km from the provincial capital of Winnipeg.

The snow lake area has access to tier-1 existing infrastructure including: Railway Access, Road Access, Airstrip, and power lines.

Summary: The Peny property has seen little historical exploration with no previous focus on Lithium Pegmatite exploration being undertaken. Lodestar Battery Metals intends to refocus the project for the exploration of lithium within the current property boundary. A reconnaissance field exploration program consisting of prospecting and geochemical surveying was completed in Q3 2022. The work which was completed over a 2 week period in October 2022 is currently awaiting assay results which are expected in Q1 2023.

Geology: The Peny property encompasses rock belonging to the Paleoproterozoic Snow Lake subdomain of the Flin Flon – Glennie Complex (FFGC) in the Trans-Hudson Orogen, and occurs along the folded southern margin of the Kisseynew domain. The property comprises sedimentary, volcanic and hypabyssal rocks of the Burtwood and Missi Groups which occur adjacent to the Crowduck Bay Pluton and associated felsic tonalites and mapped pegmatites.

The Property is in close proximity to the recognized Crowduck Bay Shear Zone which is spatially associated with pegmatite emplacement at the Wekusko Lake pegmatite field where Snow Lake Lithium (NASDAQ:LITM) have a defined indicated resources of 9.08 Mt@ 1.00% Li²O, further exploration work is assessing production of 160k tonnes per annum of 6% lithium ore concentrate for 8-10 years.

The Peny Property is located adjacent to the former producing Osborne Lake VMS Mine and Bur Property Cu+Zn+Ag historical resource, where historical workers report wall rock are intruded by coarse-grained, Spodumene bearing, sheared pegmatite.

Exploration Upside: Preliminary reconnaissance field work has identified pegmatitic rocks on the property hosted within a potentially fertile hosts rocks Crowduck Bay Pluton, and surrounding meta-sediments. The surrounding Burtwood and Missi Groups metasedimentary units are prospective for pegmatite emplacement.

Lodestar Exploration Strategy: The 2022 Peny work program has commenced stages approach with a view to systematically screening the property to develop targets for further exploration development, including eventual drilling.

Lodestar's Phase 1 approach includes:

Remote Sensing: By combining modern remote sensing techniques using multispectral imaging and synthetic aperture radar to analyze vegetation, structure and alteration, complex anomalies covering large areas can be quickly and effectively identified. This is a multivariate exploration approach, combining existing geological, geochemical, and geophysical data with multiple satellite analyses, to identify new potential mineral targets.

Tri-Axial Magnetics: An airborne survey is to be completed as soon as possible to identify favourable structural settings conducive to pegmatite emplacement.

A comprehensive surficial and subsurface structural analysis and interpretation, based on remote sensing and geophysical data is to be completed on the combined datasets, and by incorporating historical exploration and recently quired field data the property will be screened to develop systematically derived targets for boots on the ground follow up work.

Surface Mapping and Sampling: Surface mapping and sampling of outcrops will assist in identifying areas of pegmatite outcrop at the property; field exploration activities can be focused based on the geophysical and remote sensing screening.

Figure 1: Location of the Peny East Property relative to competitor projects in the Snow Lake District

1. Mineral resource estimate from 43-101 technical report titled “NI 43-101 Technical Report on the Zoro Lithium Project, Snow Lake, Manitoba” dated July 6th, 2018, authored by Fedikow et al. Resource quoted is within Table 1.1 – Base Case Inferred Resource estimate: Inferred –1,074,567 tons at 0.91% Li2O, (Cut-off grade of 0.30% Li2O).
2. Mineral Resources in S-K 1300 technical report titled “Technical Report Summary and Resource Estimate, Thompson Brothers Lithium Project, Snow Lake Area, Herb Lake Mining Division, Manitoba, Canada.” dated June 9^th, 2021, Prepared by Canmine Consultants. Resource quoted is within Table 11.1 –Project Mineral Resource Estimate. Indicated – 9,082,600 tons at 1.00% Li2O, and Inferred – 1,967,900 tons at 0.98% Li2O, (Cut-off grade of 0.30% Li2O).

Figure 2: Peny Property Claims Disposition and Property Geology