Lithium Exploration Initiative Expands Across Western Greenland

Source: Streetwise Reports 11/12/2024

Brunswick Exploration Inc. (BRW:TSX.V) announced an extensive expansion of its lithium exploration holdings in Greenland. Read more about the strategic land acquisitions set to drive future lithium exploration and development across the region.

Brunswick Exploration Inc. (BRW:TSX.V) announced an extensive expansion of its lithium exploration holdings in Greenland. This comes after a significant spodumene discovery near Nuuk. The company has applied for new licenses in the Nuuk area and increased its land holdings in Disko Bay and Uummannaq, both regions across Western Greenland. In total, Brunswick has added 92,547 hectares of new license areas. Each location has been strategically selected for favorable geological attributes, proximity to local communities, and access to tidal waters in an effort to support potential future development.

The new holdings include a variety of geological formations and pegmatite targets, with approximately 90 identified pegmatite structures ranging from 500 to 2,000 meters in length. This acquisition reinforces Brunswick’s position as the only company actively exploring lithium in Greenland and gives it one of the largest grassroots exploration portfolios in the region.

The Nuuk expansion area hosts the Ivisaartoq discovery within the Ivisaartoq belt. Adjacent regions, including the Ujarassuit and Fiskefjord amphibolite belts, add another 33,138 hectares with mapped pegmatite structures, some stretching up to 20 kilometers in strike length. The Disko Bay licenses encompass 49,639 hectares located near Ilulissat.

“This is a stock I would buy if I didn’t already own it,” Jeff Clark of The Gold Advisor wrote.

This is a strategic point close to key seaports and infrastructure in Greenland’s third-largest city. Similarly, the Uummannaq region, near the city of the same name, adds 9,770 hectares to Brunswick’s portfolio, with mapped pegmatite outcrops and a variety of mineralized belts.

As Killian Charles, President and CEO of Brunswick, explained in the press release, “With the lithium potential of Greenland newly confirmed, we have rapidly consolidated all high-priority targets in western Greenland. BRW now controls one of the most significant grassroots exploration portfolios in Greenland and is the only company actively exploring lithium in the country. Our new holdings all benefit from proximity to communities and tidal water to ensure that logistical and infrastructure needs are in place for potential future development. Between our new Ivisaartoq discovery and our expanded portfolio, we look forward to launching a major lithium exploration initiative in 2025 across Greenland as soon as possible. We are very keen to work with the Greenlandic communities, government, and European Commission as we launch this exciting endeavor.”

Why Lithium?

Earlier in the quarter, Georgia Williams of the Investing News Network detailed a mix of challenges and growth trends within the lithium market. Her report, dated October 21, noted that although lithium prices had declined significantly, analysts expected this drop to stabilize, particularly with continued demand from the electric vehicle (EV) sector. According to Benchmark Mineral Intelligence’s Sophia Jang, lithium carbonate prices “remained fairly stable over the quarter” despite the shifting demand dynamics in global markets. The report also cited Jang’s observation that the energy storage system (ESS) sector experienced steady growth, reinforcing lithium’s expanding role beyond EVs as global markets seek reliable energy storage solutions.

Writing on November 6, Alex Koyfman of Energy and Capital underscored that lithium is one of America’s “profound strategic disadvantages.” With the U.S. remaining heavily reliant on imports despite being the largest consumer of lithium-ion batteries, Koyfman emphasized the need for domestic lithium production. He cited a significant lithium deposit approved for development in 2021 as an example of forward momentum in the U.S. lithium industry. He remarked, “Despite his supporters including some of the staunchest fuel-burning . . . types, [Trump's] commitment to America’s future positioning in the lithium business was pragmatic.” The continued focus on lithium independence reflects a broader recognition of lithium’s strategic importance for battery production and energy storage.

Carbon Credits, in another article on November 6, addressed the evolving environmental perception of lithium mining. The piece challenged the longstanding notion that lithium mining is inherently “dirty,” noting advancements in extraction methods that aim to reduce environmental impact. Citing recent research, the article outlined how direct lithium extraction (DLE) could potentially “increase lithium recoveries from around 40% to over 80%” while significantly lowering the need for fresh water and reducing environmental footprints. As highlighted, “the European Union…now says that it’s ‘crucial’ to show local populations that lithium mining is no longer a ‘dirty operation.’”

The Catalysts Driving Brunswick’s Exploration

Brunswick’s recent expansion into Greenland aligns with its ongoing strategic focus on establishing large-scale lithium exploration projects, particularly in locations that offer logistical advantages. The Greenland exploration portfolio, which is close to communities and accessible through tidal water routes, is well-positioned to support future logistical needs as the company advances its exploration efforts. These factors, combined with the unique geographic attributes of the newly acquired areas, enhance the feasibility of potential future development.

The recent investor presentation also highlights Brunswick’s ongoing work at its Mirage discovery in Canada. The success at Mirage, where high-grade lithium discoveries have been made, sets a strong precedent for Brunswick’s new Greenland project. Brunswick’s experience in developing its Canadian sites is expected to play a critical role in accelerating progress on its Greenland targets. This combined focus allows the company to leverage its lithium expertise to advance both projects concurrently, positioning Brunswick as a significant player in the lithium exploration sector.

Brunswick’s focus on lithium is well-timed with increasing global demand for battery materials driven by decarbonization efforts and the expansion of electric vehicle (EV) manufacturing. The presentation emphasizes that Brunswick is one of the few public companies conducting large-scale, grassroots lithium exploration. With a well-financed exploration program and backing from key shareholders, Brunswick’s initiatives are structured to potentially capitalize on the rising need for lithium resources globally.

Analysts on Brunswick

In an analysis from The Gold Advisor on November 7, Jeff Clark positively remarked on Brunswick Exploration’s strategic expansion in Greenland. Clark noted that the company now holds “one of the largest exploration land packages in Greenland” following its successful lithium discovery near Nuuk. He also emphasized that the acquisition of additional licenses covering 92,547 hectares provided Brunswick with an advantageous position to further its lithium exploration initiative. [OWNERSHIP_CHART-10863]

He described the expansion as an attractive play for investors interested in the growing lithium market, stating, “Brunswick Exploration offers a way to play the long-term move toward the electrification of the world’s auto fleet.”

Additionally, Clark affirmed his personal confidence in Brunswick, adding, “This is a stock I would buy if I didn’t already own it.”

Ownership and Share Structure

Refinitiv reports that 25.73% of Brunswick Exploration is owned by management and insiders. Of them, Robert P. Wares holds the most at 22.59%, followed by Jeffrey Hussey at 2.27%.

Institutions hold 0.72%. The rest is retail.

Brunswick Exploration has a market cap of CA$26.43 million, 147.11 million free float shares, and a 52-week range of CA$0.14–$1.14.

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( Companies Mentioned: BRW:TSX.V, )