Lithium is their next big play and…
This Team Is Ready For Another Big Win
Editorial Feature | Dec 14, 2022 | Industry
- A band of veteran miners were exploring for gold in resource-rich Newfoundland, when they stumbled on a mineral deposit much more valuable.
- Flying across their 4-square-mile project in a helicopter, the team noticed a white outcrop in the distance, and landed to take a look. They uncovered what looks to be a massive new hard-rock lithium deposit.
- This is a rare early entry opportunity. New lithium discoveries often trigger high market caps. But today, you can invest this up and coming company while its market cap is still under $3 million.
- While exploration has barely advanced past the grab-sample phase, tests have identified the pegmatite hard-rock lithium they found was high-grade.1 And drill rigs and exploration equipment are moving in on this virgin territory as we speak.
There’s good news in the North American lithium market.
A chance lithium discovery has brought renewed attention to Newfoundland, a region well-known for mining. But until recently, historical exploration was mainly focused on metals like iron ore, nickel, silver, and gold.
That was originally the target of this company’s team of geologists, before they identified what could quickly become a critical North American lithium prospect.
And it couldn’t have happened at a better time.
Domestic Lithium Production Needs to Multiply 15x By 2025 to Satisfy Demand
North America’s minerals crisis cannot be overstated.
Demand for lithium is skyrocketing — led by the meteoric growth in EVs. Lithium demand for EVs in the US alone is projected to grow from 40,000 tons to 400,000 tons by 2030, with CAGR growth over 23%.
Even with the majority of demand growth still in the future, current demand has pushed the price of lithium up nearly 20x in the past two years…
From $5,000/ton, to nearly $80,000/ton.
And that’s just the beginning… by 2040, global demand for lithium is expected to grow 4,000% from today.
Now, so far supply has kept up with demand, but that’s set to change dramatically in only a handful of years. By 2025, demand is expected to outstrip supply by a multiple of 15 times.
Now on the flip side, many analysts estimate lithium supply will grow nearly 4X over the next eight years, from the 320,000 metric tons mined last year to 1.4 million metric tons by 2030.2
That means, even with an anticipated quadrupling of supply, lithium will inevitably fall into a perpetual deficit, that only gets greater by the year.
UBS’s renowned Global Head of Mining Research, Glyn Lawcock, issued a warning about this coming shortfall…
“There is not sufficient supply to meet this demand projection based on our knowledge of known projects today. That includes all projects whether they are under construction, in feasibility or still in exploration.”3
And, with the average lithium mine taking 4-10 years from discovery to production, there is little hope of supply catching up in the near term.
Untapped Assets In A Globally Recognized Mining District
This company’s Bounty Project is located in the historic James Bay region of west-central Quebec. The property consists of 89 mineral claims on an 11,500-acre land package, with proximity to excellent infrastructure and an experienced labor pool.
Exploration has been rapidly advancing on the property, resulting in the identification of 62 pegmatite target areas, many with previously defined indicator-mineralogy and indicator-chemistry for hosting Lithium-Cesium-Tantalum (LCT) style, spodumene-bearing pegmatites.
The initial exploration included a detailed examination of 30 of the 62 pegmatite target areas.
Prior research bodes well for the region – Newfoundland lithium pegmatites are highly evolved swarms, similar to the geology and settings of other large systems in the Appalachian belt.
Chip samples taken to date returned highly anomalous results, with 7 samples ranging from 201 ppm Li with values up to 425 ppm Li, and 16 samples ranging between 81-200 ppm Li.
And that’s just at one of this company’s prime assets.
Situated Strategically Along A Famous Strike Zone
This company also increased its lithium footprint by acquiring the option to earn a 100% interest in the Dipole Lithium property. Located in the mining friendly region of Southern Newfoundland, this is an historic center of exploration and base and precious metal production.
The property spans 2,463 acres across Newfoundland’s 450 kilometer long pegmatite belt, approximately 50 kilometers from the resource-rich Hermitage flexure.
If you’re not familiar, the Hermitage flexure is a structure containing volcano-sedimentary rock units, which are a favorable host-rocks for spodumene-bearing pegmatites.
To date, there have been several positive indicators for lithium mineralization. Historical work report by Falconbridge Mines in 1979 described the following:
- Aplite dikes containing tourmaline and yellow mica.
- Spod boulders, which may have been descriptions of spodumene
- coarse-grained megacrystic granite intruding the volcano-sedimentary belt which may reflect LCT-style pegmatites.
- Sampling found Tungsten, Molybdenum and Tin in boulders returning up to 1.5% WO3 (Tungsten oxide), 100 ppm Molybdenum and 238 ppm Tin.
- 1984 historical mapping described lepidolite, a lithium-bearing mica, associated with the tourmaline-garnet bearing aplite dikes.
More recently, the area has gained widespread interest with the recent Kraken zone discovery by Sokoman Minerals Corp.
In a joint venture with Benton Minerals, Sokoman uncovered a large area of lithium mineralization across an apparent strike length of over two kilometers, with surface sampling up to 1.93% Li20 and reconnaissance drilling of up to 8.4 meters over 0.95% Li20.
This marks the first significant discovery of lithium mineralization documented in the province of Newfoundland and Labrador, Canada.
But it’s certainly not the last.
Only 50 kilometers away, the Dipole project is currently awaiting sample results from the reconnaissance program conducted in late October.
A team of geologists targeted several known zones on interest for Lithium-Cesium-Tantalum type pegmatite- and/or tungsten mineralization.
Upon receipt of results from the reconnaissance program, this company is planning an aggressive exploration program to fast-track exploration at the Dipole Lithium project.
Solid State Battery Breakthrough Brings New Interest In Hard Rock Lithium
Now it’s important to note that both of this company’s projects bear hard rock lithium prospects, requiring a more complicated extraction method than the traditional one which processes lithium from brine evaporation pools.
While this was once a barrier to entry for many miners, new extraction technologies have streamlined the process. That’s of critical importance when it comes to the next generation of EVs.
You see, hard rock lithium can be more easily processed into lithium hydroxide, which has the capacity for greater energy density than lithium-carbonate4. That’s a necessary feature for the development of solid-state batteries5.
And, due to recent breakthroughs in the development of solid-state lithium batteries, demand is on the rise for the lithium hydroxide that can be processed from lithium hosted in spodumene.
- They weigh less than traditional lithium-ion batteries — a crucial concern for auto manufacturers.
- They are more energy dense.
- And they last longer than traditional lithium-ion batteries.
Now, solid-state batteries are in the early stages of development. We will still use traditional lithium-ion batteries for years. However, in the future, solid-state batteries are likely to grow in popularity.
And with them, so will hard-rock lithium mines.
What to do now…
The hunt for new lithium is escalating worldwide.
If all goes well, you could expect this company to stay in the news for years to come.
That’s why now is the perfect time to learn more about this growing opportunity. Sign up with your email address to learn the name of this up and coming lithium company and download their corporate presentation.
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