Other than Jim Dines |& John Kaiser - Mining101 told you about Rare Earths & Lithium first! TNR.v, CLQ.v, MCI.v, WER.v, SOI.v, QUC.v
http://www.canadianbusiness.com/markets/marketwire/article.jsp?content=20090813_103506_10_ccn_ccn
When something uncommon like lithium attracts the attention of the investing public, the first people will flock to are the obvious players.
I) The producers - FMC, SQM, Rockwood Holdings (SilverPeak Nevada)
Unfortunately, Rockwood's already at $20/share and does not present a significant growth potential.
The $2.4 billion dollar Obama grant has tricked down to the junior's level finally (it only took weeks!) and it materialized in this form - an expansion of capacity for current producers.
According to the Obama battery stimulus plan - properties have to be in the United States.
This leaves 3 major groups who have major presence in Nevada.
When something uncommon like lithium attracts the attention of the investing public, the first people will flock to are the obvious players.
I) The producers - FMC, SQM, Rockwood Holdings (SilverPeak Nevada)
Unfortunately, Rockwood's already at $20/share and does not present a significant growth potential.
The $2.4 billion dollar Obama grant has tricked down to the junior's level finally (it only took weeks!) and it materialized in this form - an expansion of capacity for current producers.
According to the Obama battery stimulus plan - properties have to be in the United States.
This leaves 3 major groups who have major presence in Nevada.
Those companies may present a stable and for the most part a secure investment thanks to due dilligence being done already by major industry analysts and fund managers - but what if you are looking for higher returns like 200-300% gains?
If you followed Mining 101 from November 2008, and invested in TNR Gold (International Lithium Corp) and other mentioned companies such as RM.v, CLQ.v, and MCI.v, you would be up significantly to the tune of 500% (in case of TNR)
II) The Juniors - the next big lithium companies
1) International Lithium (4 for 1 spinoff from TNR Gold Corp - TNR:TSX)
With 2 large projects in Nevada - potential for a new lithium brine reserve and proximity to the only producing lithium brine project in US (Silverpeak) - this one is a no brainer.
Fish Lake Valley
I don't need much convincing after United States Geological Survey tells you there's lithium in 'em hills! Furthermore - they've even done sampling for you - for TNR and Int' Lithium to pick up a project of this magnitude tells you how early these guys got in...!!
Lithium brine has been known in Fish Lake Valley since the middle of the last century and received attention from the US Geological Survey during the 1970's during a lithium reconnaissance program to identify exploration targets similar to Clayton Valley. Fish Lake Valley is one of the two most prospective areas identified in that study. In spite of this recommendation, the valley does not appear to have received much serious attention.
Compare those results ppb to other current producers - I think you will understand why this company has gone from $0.03 lows of 2009 to $0.37 high last week.
Mudd Lake
Twenty Placer Claims (3,200 acres) have been located within Mud Lake Basin. The claim block is situated about 10 miles southeast of Tonopah, Nevada. The basin is accessible by non-maintained roads passable by two-wheel drive vehicles. Mud Lake occupies a depression in the southern end of Ralston Valley. The basin is approximately 5 miles wide and 5 miles long and has a surface area of about 25 square miles. The playa is bounded by the Cactus Range and Monitor Hills to the east, Goldfields, Nevada to the south, Alkali Valley to the west, and Ralston Valley to the north.
II) The Juniors - the next big lithium companies
1) International Lithium (4 for 1 spinoff from TNR Gold Corp - TNR:TSX)
With 2 large projects in Nevada - potential for a new lithium brine reserve and proximity to the only producing lithium brine project in US (Silverpeak) - this one is a no brainer.
Fish Lake Valley
I don't need much convincing after United States Geological Survey tells you there's lithium in 'em hills! Furthermore - they've even done sampling for you - for TNR and Int' Lithium to pick up a project of this magnitude tells you how early these guys got in...!!
Lithium brine has been known in Fish Lake Valley since the middle of the last century and received attention from the US Geological Survey during the 1970's during a lithium reconnaissance program to identify exploration targets similar to Clayton Valley. Fish Lake Valley is one of the two most prospective areas identified in that study. In spite of this recommendation, the valley does not appear to have received much serious attention.
Drilling and surface brine sampling was conducted by the USGS during the 1970s.
| USGS Drilling at Fish Lake Valley | ||||
| | Lithium in Sediments | Lithium in Water | ||
| Hole Name | Samples | Li (ppm) | Samples | Li (ppb) |
| FL-11 | 45 | 9 to 99 | 1 | 30 |
| FL-11a | 67 | 10 to 115 | 4 | 160 to 21,000 |
| FL-12 | 11 | 65 to 240 | 1 | 5,700 |
| FL-12a | 27 | 30 to 409 | | 420 to 890 |
Compare those results ppb to other current producers - I think you will understand why this company has gone from $0.03 lows of 2009 to $0.37 high last week.
Mudd Lake
Twenty Placer Claims (3,200 acres) have been located within Mud Lake Basin. The claim block is situated about 10 miles southeast of Tonopah, Nevada. The basin is accessible by non-maintained roads passable by two-wheel drive vehicles. Mud Lake occupies a depression in the southern end of Ralston Valley. The basin is approximately 5 miles wide and 5 miles long and has a surface area of about 25 square miles. The playa is bounded by the Cactus Range and Monitor Hills to the east, Goldfields, Nevada to the south, Alkali Valley to the west, and Ralston Valley to the north.
This group has gone up significantly from its lows of 200 *$0.035 to highs of $0.37. Upside remains one of the best of all the lithium juniors - and the fact they got in lithium so early means TNR can likely option projects off to late-comers such as LMR, SOI, MCI, EFG, and many other junior companies looking to raise cash through getting the commodity-of-the-month.
Originally only looking to refurbish and restart pegmatite Quebec mine in Canada, CLQ has since then started exploring options in Nevada's Great Basin for lithium brines.
Biggest portfolio holders of lithium brines in Nevada remains to be TNR Gold (TNR:TSX International Lithium) and Rodinia Minerals (RM:TSX)
CLQ has gone up significantly and remains a wise investment choice. It would be very interesting to keep watch on the development with Mitsui's one-year marketing deal. From their recent press releases it's odd how they are announcing recovery rates and marketing deal - but doesn't seem like production is going to be a realistic level within the year.
Regardless - definitely one of the more advanced lithium pegmatite players around. $0.55 would be a reasonable entry point...Mining 101 covered CLQ back from its $0.26 price levels, easily +200% gain so far for loyal readers.
Funny enough their logo and site even looks like Western Lithium!
CNY started as a tightly held shell named Coniaga Resources (CNY) funded by well connected Vancouver brokerage group Axeman Financial. The meteoric share price rise can be attributed to the fact that:
a) not many shares outstanding - 36 million shares or so
b) good Quebec project - super flowthrough funding available - more bang for your exploration dollars!
While we all know pegmatites only have limited appeal - CNY/ LI should be given credit that it attracted very good names to its Management & Board.
Lithium One Inc. has released the first results from its phase 2 diamond drill program at the James Bay lithium project in Quebec. Highlights of the results from the first 17 holes include 10.50 metres of 2.38 per cent Li2O and 22.50 m of 1.51 per cent Li2O. All drill holes have intersected significant pegmatite, with 16 of the 17 drill holes returning intersections with grades between 1.10 and 2.38 per cent Li2O over significant widths, and many intersections lying within 50 metres of the surface. Pegmatite intercepts greater than five metres are summarized in the table.
Recent news from first round of drilling aren't too bad either - nothing too wide and pretty much on par with drilling USGS past results from TNR's Ontario projects (their results should be out soon too), nevertheless Mining101 thinks $2/share for a tiny junior with one project is too expensive. For that price AVL and RES presents significantly better investment choice with much more advanced resources.
Hectorite Clay is not a low hanging fruit.
Let me repeat - nobody currently produces from hectorite clay.
SQM, FMC, Chemetall - all have stated they have 100+ years of lithium reserves in brines. Why on earth would you bother recovering lithium from hectorite and rely on unproven lithium recovery methods is beyond me.
Although higher tide raises all boats - WLC does not present a realistic longterm investment choice. We see limited upside beyond $1.50. At least we didn't say not to buy like Doug Casey's Int' Speculator... looks like Casey missed out on the lithium train in hindsight!
Int'l Speculator says Western Lithium not a buy here ($0.59)
2009-07-17 15:45 ET - In the News
The International Speculator in its July 1, 2009, issue, says buy Western Lithium Canada Corp., now 65 cents, officially, "Buy under C$0.50." The newsletter said buy on Jan. 28, 2009, at 76 cents. An investment of $1,000 is worth $846. Lukewarm buys such as this one are difficult for investors to follow because of the gap between the trading price and the buy price. The result is we have a fudged buy that really means do not buy. The Speculator's writer scans the press releases and says his North American lithium speculation continues to advance its Kings Valley lithium project in Nevada. He notes the lack of press releases; talking points are few. He figures the news slump and slow market increase the odds of getting a better entry point. That means investors should hold out for 50 cents or better. Aggressive buyers can try for 40 cents, in what the writer calls a "stink bid."
0 comments:
Post a Comment