Mansoor’s Radar: Winsome close to delivering 2 MRE’s next quarter

Winsome started as MetalsTech, with the Cancet and Adina projects under its wings. Cancet is the critical project; management focused on historic workings and advanced through understanding the metallurgical testing and recoveries, where next to drill, making field visits and keeping the market excited. 

All this changed when magnetic signatures identified at Cancet correlated with the pegmatite structure. This led to the discovery of well-mineralised spodumene boulders to the northeast of the Cancet and Eastern pegmatites during the 2018 field exploration program. As a result, the landholding was expanded by 60 per cent through new staking towards the east. 

MetalsTech carried out diamond drilling over 2 phases (59 drill holes, totalling 5,216m) during 2017, followed by Winsome over the last two years. 

At Adina, MetalsTech conducted a field geochemical sampling program in August 2016. The goal was to verify low-grade green-blue spodumene-bearing pegmatites reported in the 2014 Quebec government regional mapping campaign. Work on the ground included a one-kilometre traverse to locate and sample pegmatite outcrops, and eleven samples of spodumene-bearing pegmatite were collected from several pegmatites. 

Birth of Winsome 

Winsome established the foundation on the 30th of November in 2021 and listed by raising A$18M on ASX as WR1, and Chris Evans came onto the Board as Managing Director. 

21 Months’ Achievement 

The list is exhaustive of their achievements across multiple fronts 

• Cancet 20 diamond drill holes over 2,000m  
• Cancet Gravity Survey  
• Acquiring capital-efficient exploration equipment 
• Decelles value assertive acquisition – 669 claims, 38,000 Ha 
• Notably highlighting early in the program, Cancet resource target 15-25Mt @ 1-2% Li20 
• $6.8m CR to advance lithium projects 
• Signing a binding agreement to purchase Power Metals Corp’s Case Lake Project 
• $60m to accelerate Canadian lithium projects 
• Increasing its stake in Power Metals to around 10% 
• Pegmatite at Adina extended to 1600m of a potential strike 
• Lithium mineralisation confirmed over 3km trend at Adina 
• Lithium portfolio expands with acquisition of Tilly Project 
• Substantial high-grade intersections continue to grow Adina  
• Acquiring a camp close to Cancet and Adina 

Adina Resource Estimate 

With current drilling in play, confirmation of connectivity between Adina’s main body and Adina East extending over the Adina Resource would have considerable upside potential. If mineralisation is proven to be continuous between Adina East, which extends over 1.9km as suggested by ground gravity readings, analysis indicates the bookend of a resource estimate is 50-60Mt. The research includes no extreme downdip and assumes consistent geological extension to step out of holes AD-23 – 43, 44 & 45. 

Cancet Resource Estimate 

WR1 has completed around 2142m from 23 infill holes to understand geological structures better and identify additional pegmatite outcrops across the Cancet project area. Winsome Resources has confirmed the high grade of mineralisation across the Cancet land package, validating the existing ore body and extending the known strike length to 1.2km.  

Cancet is a relatively shallow deposit and simple geological structure; Winsome has already highlighted the resource estimate between 20-25Mt. 

Winsome Resources Valuation 

We use industry reference resource multiples to generate a WR1 share price estimate. Adina’s conceptual resource of 50-60Mt holds an in-situ resource value of A$500-600m for Adina Central and East. The Cancet resource estimate is between 20-25Mt, with an in-situ resource value of A$200-250m with around 190m SOI. This suggests the WR1 price target is around $3.7. 

Next 3 – 6 Months Deliverables 

The market is expecting four things: