SOMBA K'E/YELLOWKNIFE - North Arrow Minerals is planning additional drilling next year at its Phoenix lithium project, located 340 km northeast of Yellowknife.

The Vancouver-based junior exploration company staked the property in 2008 after sampling data generated by the territorial and federal government on potential mineral plays in the NWT.

"We liked what we saw and we staked it," said Gordon Clarke, vice-president of exploration for North Arrow, of the original showing, which the company called "Big Bird."

In 2008, North Arrow spent $125,000 doing sampling, mapping and a ground geophysical survey.

The company followed that up this summer with a three-week drilling program during which it discovered another zone three kilometres from Big Bird, named "Courlew." Program spending increased to $450,000.

Northern contractors included Great Slave Helicopters, Discovery Mining Services, Northtech Drilling and Aurora Geosciences, with eight of nine staffers from the North.

Raising money for the campaign proved difficult during the turbulent financial climate earlier this year, but the company was lucky.

"Initially, yeah, it was a significant chunk of change to get financing for that last spring," said Clarke. "It's still tough, but fortunately, lithium is a hot commodity right now."

Lithium is used in pharmaceuticals, ceramics and greases.

"The main use right now, or the projected use, is going to be in rechargeable lithium-iron batteries," said Clarke, adding that the increasing popularity of electric cars will also encourage continued demand.

Last month, the Yellowknives and Lutsel K'e First Nations filed a notice of application, calling on the federal court to revoke the five-year permit handed to North Arrow by the Mackenzie Valley Land and Water Board earlier this summer.

While Clarke would not comment specifically on the case, he said the company plans to continue drilling at Phoenix.

This spring, the company hopes to conduct four to five weeks of drilling, the cost of which Clarke pegged at $1 million, "unless there's some other legal action ... against work," he said.