Audacious Aussies chase lithium in the Canadian outback

The vast, glaciated wilderness in the Canadian province of Quebec, stubbled by black spruce to the horizon and with hefty black bears on the prowl, seems a world away from the Australian outback.

What both areas have in common are world-class seams of hard-rock lithium, and a rich history of mining in extreme conditions.

Aussie explorers are among those racing to extract the "white gold" and help create an independent source of the critical mineral for North American battery manufacturers and automakers.

They might seem like Crocodile Dundee-style cowboys to the more conservative Canadians but the Winsome Resources team has the attention of sophisticated investors.

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An intrepid group of Aussies - and local Quebecois - are on an audacious path to production at a discovery at the Adina ridge in James Bay, which is two hours by charter flight north of Montreal, followed by a helicopter flight over terrain marked by wildfires.

A recent site visit hosting representatives from four Canadian investment banks was followed by the industry's flagship event, the Fastmarkets lithium and battery minerals conference in Las Vegas.

Winsome's option to purchase a nearby diamond mine's relatively new infrastructure for a fraction of its $1 billion cost was a "game-changer" and could shave at least two years off the path to production, one banker told AAP.

Quebec's first and only diamond mine, located 60 kilometres south of Adina, opened in 2016 and was forced to close in 2023 with the price of rough diamonds plunging as demand dwindled.

Stornoway Diamond's rock-crushing processing plant at Renard, with accommodation for 330 workers and next-level security, screened employees for alcohol on the way in and for stashed diamonds on the way out.

There's also an infirmary, ice hockey rink, a fully equipped gym to avoid the "Molson muscle" (beer belly), a fleet of emergency vehicles, and a multi-million-dollar store room of spare parts that rivals an IKEA warehouse.

The all-weather site could be repurposed for battery minerals, including vital "dense media separation" machinery widely used in the mining industry that could produce lithium concentrates from high grade ores.

As the crushing processing involves water - not acids and poisons - the environmental footprint sits more lightly on the land compared to gold mining, which is Canada's most valuable mined commodity.

Adina also sits on the traditional lands of the Cree Nation of Mistissini, with one family saying they are wary of the speed of development.

But just because it usually takes 10 to 15 years to get up and running from discovery to production does not mean it has to, Winsome Resources managing director Chris Evans says.

They were chasing production within five years, even before considering spending C$52 million (A$57 million) on the Stornaway assets.

An ex-Australian Army engineer, he admits Winsome has had "a bit of luck" since its debut on the ASX less than three years ago.

Looking to prove up the tenements further, he says the exploration team were hovering in a chopper looking for safe clearing to land amongst the springy, peaty soil and clusters of spiky spruce.

Spotting a clear, flat rocky area, they set down and discovered they were right on top of an exposed outcrop of spodumene.

"This was the lucky break we were looking for," General Manager, Canada, Carl Caumartin tells potential investors at the site.

Their tonnage estimate for Adina in May soared by a third to 77.9 million tonnes, or 2.21 million tonnes of lithium carbonate equivalent, a mere six months after the company announced its first mineral resource estimate.

Winsome, which has another three project areas nearby - Sirmac-Clappier, Tilly and the more advanced Cancet - says the discovery confirmed a strong business case for Adina as one of the world's largest undeveloped lithium deposits.

Vice-president of exploration Antoine Fournier says it can be tough going with samples in your backpack for 10 hours through rough terrain.

But he agrees that parents on both sides of the Pacific should forget about telling kids to stop filling their pockets with rocks, because the world needs future geologists with a keen eye who might find the next jackpot.

"This is a very rich patch of it," he said, standing on the glistening outcrop of spodumene, vanadium and quartz.

"You know it's high-quality spodumene because it's light-coloured - if it was darker-coloured, that means there are more contaminants in it."

The main difference compared to Australian hard-rock lithium is that in Canada the weathered rock is sitting on top, with glaciers having scraped much of the surface away to the south-west, Mr Fournier explains.

"If you're looking at a block of this size, you're 100 metres from your source," he said.

Locals have hydro bills, not power bills, call their coins loonies, and enjoy a slice of bumbleberry pie before slipping on their snowshoes or knapsack.

Board member and reservist Justin Boylson, a trusted former army buddy of Mr Evans, says the location in Canada's hydro-electric corridor is another plus for legitimising the sustainability credentials of the company.

North American and European manufacturers are getting more particular about the source of their supplies as consumers demand higher environmental standards, a smaller carbon footprint and products free of slave labour.

With Renard located 400km north of a national rail system, which connects to the Bécancour critical mineral and battery supply chain hub, it would also be handy for the Great Lakes-St Lawrence seaway that has historically carried commodities into the continent's industrial heartland.

However similar to Australia, the unresolved question is where the energy will come for the next generation of industry, with a waiting list out to 2030 for new operations to get access to hydro-electricity.

Bridging the gap, Renard includes a 16-megawatt gas-fired electricity supply and backup diesel-powered generators that could also serve as a processing hub for Winsome's neighbours, when a new road and bridge are built.

Lithium prices have continued their downward spiral with China able to maintain its near-monopoly on factory-ready materials and undermine many Western investment decisions on new sources.

Dale Henderson, managing director at Australian lithium producer Pilbara Minerals which has the world's largest independent hard-rock lithium operation, has been keeping a close eye on Winsome's progress in James Bay.

Mr Evans, as general manager of operations and then chief operating officer at Altura Mining, helped to launch the Pilgangoora operation in Western Australia.

It was later bought by Pilbara when Altura collapsed during the previous price slump.

Wesfarmers, Chile's lithium giant SQM and WA's Mineral Resources are also sniffing around for opportunities to leapfrog into the North American supply chain.

Mr Evans says Winsome has no trouble attracting staff, as the latest generation of climate-savvy workers would rather be chasing lithium than mining Quebec's gold.

And he has an open-mind on whether Winsome hits paydirt as part of a lithium giant or run by his team, but says he's certain it's going to take far less time than expected.

The reporter travelled with the support of Winsome Resources.