Lithium Leads Nearly All Investments This Year — Prices Have Jumped Over 150% As Demand Outstrips Supplyi
Editorial Feature | January 1, 2023 | Industry
And Its Biggest Market is Projected to Grow Over 40% a YEAR Through 2027.ii
A tiny microcap may have just discovered one of the richest deposits in North America. If and when the deposit is proven — via drilling scheduled for Q1 2023- this company could see significant growth in the near-term.
- The only category that has outperformed this year is clean commodities — chiefly battery metals. Lithium in particular has done exceptionally well — increasing from a shade over $30,000/ton, to $80,000/ton todayiii. Already a $6.8 billion market, the lithium sector is expected to continue growing at a double-digit pace throughout the decadeiv.
- Demand is increasing at a breakneck pace. Between 2020 and 2021, demand for lithium jumped 33%v. And that is projected to be one of the slowest increases of the decade. The electric vehicle market alone is projected to increase 41.5% a year through at least 2027vi. Lithium is also essential for creating power cells to store electricity produced by rapidly growing renewables like solar and wind.
- Hard rock lithium is particularly in demand. While the majority of lithium is captured from brine, hard rock lithium can more effectively and efficiently become solid-state lithium-ion batteries. Solid state batteries are cheaper, lighter, more efficient, and last longer than traditional lithium-ion batteries.
- The company owns three lithium projects it is currently exploring. While initial drilling is just starting up, these projects are surrounded by successful lithium ventures.
- These projects are in Quebec, Canada, where drilling is only $100/meter — some of the most affordable rates in the world. When this companies’ lithium mines come online, they will be some of the only hard-rock lithium mines in America.
- In addition to these three lithium projects, the company also has a cobalt/nickel deposit it is exploring, and a graphite deposit that early indicators suggest may be the largest graphite deposit in the world. In addition to initial surveys showing high concentrations the graphite, it also is the correct type of graphite for using in batteries — a particular chemical bond structure that makes this graphite perfect for conducting electricity.
- This company is helmed by an experienced team, with many in clean tech, exploratory mining, and startup companies. Founder Zayn Kalyan has taken numerous public since 2014, earning high multiples for investors. And Director Case Lewis is a professional geologist with numerous successful projects throughout Canada under his belt.
- While some initial drilling is happening this year, the majority of new exploratory drilling will take place in Q1 2023. When reserves are proven, that’s when stock prices can move quickly. With such incredibly promising early results, this company is potentially sitting on multiple large deposits of increasingly valuable metals, at a time when almost all other investment markets are either erratic or depressed.
The Perfect Time to Invest in Lithium
Once or twice a generation, a commodity finds a new market use and increases in value astronomically.
It happened to gasoline — which, for a time, was the leftover byproduct when making kerosene for lamps. Gasoline was unwanted — until the internal combustion engine came along.
More recently, it’s happened with a variety of rare-earth metals. A generation ago, rare-earth metals were also considered worthless. To the point that one of America’s largest rare-earth deposits is currently a Superfund site — because it was the trash dump for the byproducts of other mines decades ago.
Today, thanks to advanced electronics, rare-earth metals are fast becoming some of the most valuable metals on earth.
And right now, it’s happening with lithium.
You might think that the growth in lithium has already happened.
After all, whatever you’re reading this on probably has a lithium-ion battery. If you have a smartwatch on, it’s using a lithium battery.
In fact, just about everything in the modern world that can operate while unplugged — from automated vacuums to portable speakers — runs on lithium batteries.
And the price of lithium reflects this increase in demand.
Over the past year — when most investments in stocks, in other commodities, and even in bonds has lost money — lithium has gone up about 150%vii.
Commodities are traditionally the first sectors to emerge from recessions and bears… and we’re seeing that exact pattern play out today.
However, lithium is outpacing nearly all other commodities by an order of magnitude — thanks to skyrocketing demand hitting at the same time investors are seeking safety in tangible assets.
But the truth is — while growth has been astounding, with lithium demand increasing 33% in the last year alone — what we’ve seen so far is only the prelude.
That’s largely thanks to electric vehicles.
As the world tries to go clean and green, EVs have been one of the largest beneficiaries.
Still a small part of the overall transportation market, EVs are growing by leaps and bounds. Through 2027, the EV market is expected to average 41.5% growth per year.
Exploratory Drilling Slated For Early 2023
This company has multiple projects in the exploratory phase.
Not only are the samples showing high lithium potential, but there are a number of other valuable metals identified as well.
The Galaxy Project covers 22 mineral claims — with two more pending — each 100% owned or optioned by this company.
Also located in Quebec, the Galaxy Project shows unusually wide pegmatite bands, with surveys showing them 15-18 meters wide near outcroppings, and potentially becoming wider near the source of these veins.
Initial assays show anomalous quantities of lithium, tantalum, thorium, molybdenum, and uranium throughout the 1500 hectares.
While a smaller site than Taiga, Camaro, and Hellcat, the Galaxy Project may prove just as rich.
But it doesn’t end there.
This companies Buda Project is home to 68 mining claim cells dating back to the 1980s.
Easily accessible via existing infrastructure, the Buda Project shows seven different pegmatite deposits that are worthy of deeper study — coming in Q1.
No one was looking for lithium in the 1980s. But we are now. And existing mine sites like Buda can be accessed more quickly and easily than virgin ground.
This company is also sitting on project that initial surveys indicate is rich in manganese, and another rich in copper, cobalt and nickel.
Any of these projects realizing their potential could easily send the share price of this company multiples higher in days.
But there is one more project worth highlighting.
One of the Richest Graphite Deposits in the World
The Rockstone Graphite Deposit has shown initial results of 23.1% graphite — which would make this one of the most substantial graphite deposits ever identified, easily in the top quartile.
At 25 meters, early assays show this deposit holding over 25% graphite — potentially meaning the site is even more promising than originally thought.
But beyond the richness, the size of this deposit is proving enormous.
In fact, initial studies suggest this could also be the largest known graphite deposit in the world.
Even more impressive, this isn’t ordinary graphite.
This graphite contains a highly ordered hexagonal morphology — the preferred morphology for graphite in batteries and other conductive uses, only formed in certain pressurized conditions.
It’s located in Ontario, directly next to a highway and only 50 km from a major rail station, and just as close to the port in Thunder Bay.
It’s impossible to know with absolute certainty what is underground before there is extensive exploratory drilling, and deposits are proven.
But this company has every ingredient you look for in a resource company.
- Neighboring plots with rich resources.
- Geology that suggests those resources continue into this company’s projects.
- A number of high potential projects — so even if one or two are false positives at this early stage, others will prove themselves as rich as expected (or, in the case of Rockstone Graphite, possibly even richer).
- And a management team with experience developing projects exactly like these, successfully, numerous times.
Drop all that promise in the red-hot battery metals market — with special attention paid to lithium — and you have the perfect set up.
If you are looking for a good way to increase exposure to the ever-growing lithium market, there are few better potential plays. Sign up with your email address to learn more about this fast-growing opportunity.
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