April 5, 2023April 5, 2023Categories Tags From the Managing...

April 5, 2023
April 5, 2023Categories Tags From the Managing Director's deskDear Fellow Shareholders and Stakeholders,March was a turbulent month for lithium spot prices and the market in general, driven in part by Chinese automakers heavily discounting ICE vehicles to shift excess inventory and also by the banking crisis and inflationary worries that tend to cause a lot of retail selling.Some buyers also appeared to continue to be put off purchasing volumes on a spot basis and drew from waning inventories instead.The drop in lithium demand was largely constrained to the Chinese market and some analysts are already predicting a price rebound in the second half of the year.The medium to long-term outlook for lithium also remains strong, with most analysts aligned in their view demand will continue to outstrip supply.With new supply required to meet growing demand, I am pleased to report results from our winter drilling campaign continue to highlight the world-class potential of our Adina Project in Quebec.Assays received during March confirmed the impressive tenor and thickness of the lithium mineralisation through the Main Zone at Adina.The assays included several +50-metre intersections above grades of 1% Li2O. Of note is the fact we intersected mineralisation on every drill section over a 700-metre strike length and exceptional high grades continue to be present at the top and base of the pegmatite body.We have also been focusing our exploration away from the Main Zone, with assays from the Adina East Prospect this month confirming high-grade lithium mineralisation some 1.9 kilometres east of the Main Zone.This means we have now extended the strike of the lithium mineralisation trend at Adina to 3 kilometres, and it remains open to both the east and the west. Adina is emerging as a robust project well placed to meet future North American lithium demand.Not resting on our laurels, we have expanded our drill programme to test the broader Adina project to determine the scale of mineralisation as well as the link between Adina East, Adina Main and the previous drilling undertaken at Adina by MetalsTech.We have already mobilised a third rig to fast-track drilling of the targets delineated by ground gravity surveying as well as test for the continuity of mineralisation along the 3 kilometres of strike between the pegmatite bodies.I look forward to providing further updates on the ongoing drill campaigns at both Adina and Cancet as results continue to flow in.Last month, Winsome also announced its intention to increase its stake in Canadian-listed Power Metals Corp to about 10 per cent through participation in a capital raising led by Canaccord Genuity.It follows on from our initial investment in December last year to take an initial 5.6 per cent stake as well as the rights to all offtake from Power Metals’ Case Lake lithium-caesium-tantalum project in eastern Ontario.Battery minerals focused investment company Waratah Capital Advisors also signalled its intention to invest up to C$1.5 million in Power Metals, which is testament to the high prospectivity of the Case Lake Project and endorses our intention to help rapidly advance the project.Winsome is well positioned for future growth, with lithium markets levelling out and likely to rebound due to the forecast imbalance between supply and demand.We are continuing our aggressive exploration strategy as we work towards delivering a maiden resource at our Adina and Cancet assets in Quebec’s James Bay region and the Company remains open to potential further acquisitions if the right opportunities arise.Chris EvansManaging Director

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From the Managing Director's desk

Dear Fellow Shareholders and Stakeholders,

March was a turbulent month for lithium spot prices and the market in general, driven in part by Chinese automakers heavily discounting ICE vehicles to shift excess inventory and also by the banking crisis and inflationary worries that tend to cause a lot of retail selling.

Some buyers also appeared to continue to be put off purchasing volumes on a spot basis and drew from waning inventories instead.

The drop in lithium demand was largely constrained to the Chinese market and some analysts are already predicting a price rebound in the second half of the year.

The medium to long-term outlook for lithium also remains strong, with most analysts aligned in their view demand will continue to outstrip supply.

With new supply required to meet growing demand, I am pleased to report results from our winter drilling campaign continue to highlight the world-class potential of our Adina Project in Quebec.

Assays received during March confirmed the impressive tenor and thickness of the lithium mineralisation through the Main Zone at Adina.

The assays included several +50-metre intersections above grades of 1% Li2O. Of note is the fact we intersected mineralisation on every drill section over a 700-metre strike length and exceptional high grades continue to be present at the top and base of the pegmatite body.

We have also been focusing our exploration away from the Main Zone, with assays from the Adina East Prospect this month confirming high-grade lithium mineralisation some 1.9 kilometres east of the Main Zone.

This means we have now extended the strike of the lithium mineralisation trend at Adina to 3 kilometres, and it remains open to both the east and the west. Adina is emerging as a robust project well placed to meet future North American lithium demand.

Not resting on our laurels, we have expanded our drill programme to test the broader Adina project to determine the scale of mineralisation as well as the link between Adina East, Adina Main and the previous drilling undertaken at Adina by MetalsTech.

We have already mobilised a third rig to fast-track drilling of the targets delineated by ground gravity surveying as well as test for the continuity of mineralisation along the 3 kilometres of strike between the pegmatite bodies.

I look forward to providing further updates on the ongoing drill campaigns at both Adina and Cancet as results continue to flow in.

Last month, Winsome also announced its intention to increase its stake in Canadian-listed Power Metals Corp to about 10 per cent through participation in a capital raising led by Canaccord Genuity.

It follows on from our initial investment in December last year to take an initial 5.6 per cent stake as well as the rights to all offtake from Power Metals’ Case Lake lithium-caesium-tantalum project in eastern Ontario.

Battery minerals focused investment company Waratah Capital Advisors also signalled its intention to invest up to C$1.5 million in Power Metals, which is testament to the high prospectivity of the Case Lake Project and endorses our intention to help rapidly advance the project.

Winsome is well positioned for future growth, with lithium markets levelling out and likely to rebound due to the forecast imbalance between supply and demand.

We are continuing our aggressive exploration strategy as we work towards delivering a maiden resource at our Adina and Cancet assets in Quebec’s James Bay region and the Company remains open to potential further acquisitions if the right opportunities arise.

Chris EvansManaging Director