ADVERTORIAL
Lithium Supply Crunch Creating Perfect Storm for Near-Term Producers in Canada
As Lithium Demand Rapidly Outpaces Supply, One Junior Explorer is Charging up its Exploration Efforts on its Canadian Lithium Projects
Beyond the insatiable demand currently brewing for electric vehicles (EVs) is the looming threat of dwindling global lithium supplies that could dent the world’s chance of meeting its climate goals.1
In fact, the lithium market is predicted to remain in structural shortage until 20252, while its global value is set to increase to $8.2 billion by 2028.3
All over the world, nations are scrambling to find new sources of lithium, in places such as Australia, South America, and even Africa. However, according to Canaccord, it’s Canada (in particular Québec and Ontario) that’s positioned to become a key lithium player in the medium-term.4
Which is why one company that is active in the region is gaining interest due to their prime real estate with exceptional infrastructure in a mining-friendly jurisdiction, and located directly next to the region’s next North American Lithium Mine that’s set for its first spodumene lithium production in Q1 2023.
Lithium Truly IS The Next Gold Rush
According to Benchmark Intelligence, the lithium sector needs $42 billion—invested annually at $7 billion over 6 years—by the end of the decade in order to meet battery-making materials demand.5
Lithium consumption has already QUADRUPLED since 2010.6
Rystad Energy has sounded the alarm about a lithium supply deficit, projecting annual lithium demand from EVs to rise more than 20x by 2030.7
By 2035, the lithium supply gap is projected to see production fall short of demand by at least 1.1 million metric tons, or 24% less than needed.8
With large hard rock spodumene deposits and brine-based lithium resources in place, Canada is currently positioning itself to be a major player in the global lithium stage.9
One Junior is Perfectly Located in Canada’s Next Big Lithium Regions: Quebec and Ontario
On the ground, Québec has been VERY accommodating to the development of lithium mining in the province, including building an access road dubbed “Lithium Road” to connect the North American Lithium mine’s administration building and plant.
Québec is targeting $7 billion in private and public investment in the lithium battery sector during this decade,10 with companies such as BASF11, General Motors and POSCO12 already announcing new facilities in the province.
Later this year, Australian lithium miner Sayona Mining gave its stamp of approval on its Québec project, by awarding a four-year $200 million contract to a local company for mining operations—believed to be one of the largest such contracts ever signed in Québec and expected to create 120 new jobs.13
So, where Fitch Solutions analysts have noted a “sharp uptick” in community opposition to brine-based lithium projects in Latin America,14 Québec very clearly appears to be embracing the potential for development.
And the market is taking notice and witnessing how the timing is finally right for Québec’s lithium miners.15
The most prominent lithium project in Canada today is the North American Lithium mine, set to be opened and operated by a partnership between Piedmont Lithium and Sayona Mining.
Strategically located amid multiple other promising projects, a little-known company has the potential to become the next significant discovery in the region.
Their Augustus Project is approximately 7 km away from the project and is directly located next door—and within 10km of an Abitibi processing plant.
And they has a noteworthy project in Ontario, through its 2,490-hectare North Spirit Lithium Project, which is directly adjacent and parallel to Frontier Lithium’s Electric Avenue projects.
It’s worth noting that another nearby Ontario player is Rock Tech Lithium with its plans to source raw material from its own Canadian mineral project, to sell to automotive customers with high-quality lithium hydroxide made in Germany.16
Now let’s look at the company’s current stage of development compares to other lithium miners with Canadian projects underway:
TWO Promising Projects AUGUSTUS LITHIUM PROJECT — QUÉBEC
With the original core claims comprising of approximately 927.07 hectares, the company has secured the dominant land position just northwest of Val d’or, Québec, that contains several historical finds and new lithium prospects. Their footprint currently sits at approximately 27,000 hectares in a growing Lithium district.
Since acquiring the project, they have located numerous spodumene pegmatites on its ground, all while keeping a focus on its Augustus Lithium project just west of the North American Lithium Mine.
In 2021, the company launched its Phase I exploration project on Augustus, which included prospecting, stripping, grab and channel sampling as well as the completion of a Phase One diamond drill program of 5,847.15m within 32 drill holes—27 of which intersected significant spodumene bearing lithium.
Total lithium resources for this region are over 50 million tonnes at 1% lithium oxide out of which Mine Québec Lithium 32 Mt at 1.19% Li2O Measured plus Indicated (M+I), Authier 17.18 million tonnes at 1.01% Li2O (M+I) are the most significant.
All these projects/prospects are at various stages of exploration and development, out of which the Québec Lithium Mine is the most advanced project followed by Authier lithium project.
The geology and the mineralization of the Augustus Property are similar to the geology and mineralization of Québec Lithium mine located approximately 7 kilometers to the southeast of the Property.
NORTH SPIRIT LITHIUM PROJECT — ONTARIO
Covering 2,490 hectares, the North Spirit Lithium Project lies directly adjacent and parallel to Frontier Lithium’s Electric Avenue projects that include the PAK and SPARK lithium deposits.
The projects sit directly within (and along) a large NW-SW crustal scale structure associated with the emplacement of granites and spodumene-rich lithium bearing pegmatites.
Only discovered in 2018, Frontier’s nearby SPARK project has continually delivered excellent drill results and newer discoveries like the BOLT pegmatite in the area in late 2020—leading to a resource of 14.4 Mt of 1.40% Li2O Indicated and 18.1 Mt of 1.37% Li2O Inferred for SPARK, making it one of the richest pegmatite occurrences in North America.17
To date, the North Spirit Lithium Project remains a blue-sky bonus project for this explorer, as it prepares to perform its own development work in the future.
With the growth in EV demand and surging lithium prices, it’s a great time to consider getting involved in the lithium space, as the industry heads into a period of unprecedented demand, and fears over whether there will be enough supply.
However, not all lithium investments are equal, especially given the varied stages of entry that investors have to choose from.
Unprecedented Lithium Supply Demand Fundamentals make THIS IS an ideal TIME to follow this company’s ongoing story—because it’s really just getting started.
Please subscribe to learn more about this promising young company, and to receive email updates so don’t miss out on any news and milestones.
1 https://www.bloomberg.com/news/features/2022-05-25/lithium-the-hunt-for-the-wonder-metal-fueling-evs
2 https://stockhead.com.au/resources/high-voltage-four-reasons-the-lithium-market-will-remain-in-structural-shortage-until-2025/
3 https://www.globenewswire.com/en/news-release/2022/03/11/2401706/29442/en/Global-Lithium-Market-Expected-to-Reach-8-2-Billion-by-2028-Grand-View-Research-Inc.html
4 https://www.proactiveinvestors.com/companies/news/995594/canada-positioned-to-become-a-key-producer-of-lithium-canaccord-says-as-it-warns-of-critical-supply-demand-imbalance-in-north-america-995594.html
5 https://www.bloomberg.com/news/articles/2022-05-16/lithium-sector-needs-42-billion-as-pivot-from-china-adds-costs
6 https://elements.visualcapitalist.com/lithium-consumption-has-nearly-quadrupled-since-2010/
7 https://www.wsj.com/articles/the-scramble-for-ev-battery-metals-is-just-beginning-11638443405
8 https://www.bcg.com/publications/2022/the-lithium-supply-crunch-doesnt-have-to-stall-electric-cars
9 https://www.nrcan.gc.ca/our-natural-resources/minerals-mining/minerals-metals-facts/lithium-facts/24009
10 https://www.theglobeandmail.com/business/article-pallinghurst-makes-a-billion-dollar-bet-on-quebec-as-a-global-battery/
11 https://www.reuters.com/business/autos-transportation/basf-picks-canadian-city-ev-battery-materials-facility-2022-03-04/
12 https://globalnews.ca/news/8664255/general-motors-posco-new-plant-quebec/
13 https://www.northernminer.com/news/sayona-awards-200m-mining-contract-to-l-fourier-et-fils-for-restarting-lithium-mine/1003847105/
14 https://www.northernminer.com/editorial/minings-problems-are-now-the-worlds-problems-as-lithium-scale-up-issues-show/1003847392/
15 https://www.northernminer.com/editorial/the-timing-is-finally-right-for-quebecs-lithium-miners/1003846328/
16 https://www.rocktechlithium.com/about-us
17 https://www.newswire.ca/news-releases/frontier-lithium-successfully-converts-inferred-resource-to-14-million-tonnes-of-indicated-resource-on-the-spark-deposit-828843963.html
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