The Next Stage of the Lithium Boom has Begun
There's a new rock in town, and it's promising to change everything we thought we knew about lithium. It has come right at the crucial moment, when the uncertainty of production has giant electric vehicle and battery makers scrambling to secure future supply, and when even the oil and gas industry is eyeing lithium as its own lifeline in a world shifting toward lower-polluting alternatives. Mentioned in today's commentary include: Newmont Mining Corp (NYSE: NEM), Agnico Eagle Mines Ltd (NYSE: AEM), Alexco Resource Corp (NYSE: AXU), Wheaton Precious Metals Corp. (NYSE: WPM), Alphabet (NASDAQ: GOOG).
The rock is pegmatite… And some pegmatite contain abundant lithium that have already been discovered in huge quantities in Ontario, Canada.
And one little-known company called Power Metals Corp.(PWM.V; PWRMF) has interests in 9 huge pegmatite-rich domes and is fast-tracking its exploration…
And it's caught the attention of some of the biggest players in the battery metals space.
Last year, it was ranked #8 on the top 10 list of TSX: V miners. This year, it's gunning for the top slot.
Massive drilling is now under way in Ontario, where Power Metals has managed to secure money and one of the most sought-after lithium geologists in the world: The 'queen of pegmatite', Dr. Julie Selway.
The world's lithium reserves are found in three types of deposits: brines, sedimentary rocks and pegmatites. And while the North American lithium rush has been largely focused on the brine, Power Metals is going for the ultimate recovery of hard-rock lithium.
Right now, the public is only hearing about the brine. By summer, this could be a hard-rock story, and Power Metals will be telling it.
Here are 5 reasons to keep a very close eye on Power Metals (PMW.V; PWRMF) right now:
#1 Drilling More This Year Than Anyone Else
Power Metals has already done more drilling this year than any other hard-rock lithium miner in the country.
They'll do more than any other lithium exploration company for the rest of the year, too-and they are already fully funded for that drilling.
Now, Power Metals has three key lithium properties in Ontario:
The Flagship Case Lake Lithium Property, with 38 mining claims covering over 7100 hectares, sits right next to established gold mining camps in the Abitibi Greenstone Belt and is surrounded by a geological lithium bonanza-the Case Batholith, a massive ovoid granitic complex. Here, multiple pegmatite outcrops have already been identified but not explored.
The Paterson Lake Property has known multiple sources of pegmatites that remain attractively underexplored and is only 2 kilometers away from another big lithium property, Avalon's Separation Rapids.
The Gullwing-Tot Lake Property-another underexplored hard-rock play with two known pegmatite sources.
Power Metals has already done a ton of drilling, and it's got 6 more drill targets to go for this year.
In fact, they're budgeted and funded for an extraordinary 15,000 meters of drilling this year alone, in addition to January's 3,000 meter program and the 5,000 meter program completed in 2017, with mouth-watering results that were disclosed in their press releases …
#2 Huge exploration upside
It's all about domes. What are domes? They are huge rock formations that contain large concentrations of lithium rich pegmatite.
When Dr. Selway started drilling at the company's flagship property, Power Metals thought they were dealing with one big rock, with pegmatites entwined. But what Selway found was a giant "dome" of rock.
And not just one, but 9.
Exploration has only touched one of these domes, so the exploration upside potential here is a hard-rock dream. As soon as Power Metals (PWM.V; PWRMF) saw what they had, they bought up all of the land, and all of the domes surrounding their first prospect.
In fact, it's so big that Selway's dilemma now is that there are too many drill targets. It's a great dilemma for a junior miner of the hottest metal on demand to have.
Now, Power Metals is being directly compared to the huge success story of Nemaska Lithium, the leader of Canadian hard rock lithium mining. And while this is a good and direct comparison, Power Metals' average lithium grade for exploration samples is currently higher than that of Nemaska's at Nemaska's equivalent early stage of development.
#3 Smartest Lithium Money in the World Getting in on This
Nemaska (TSX:NMX) is sitting on what many believe to the be second-richest and largest lithium deposit in the world-and despite that, some of its biggest shareholders are looking to back Power Metals.
It speaks volumes about confidence when one of the biggest North American lithium investors buys into a junior like Power Metals. They're comparing Case Lake to Nemaska, and are seeing plenty of potential.
Institutional financing can provide companies with a major boost in confidence, and on the 15th of January, Power Metals (PWM.V; PWRMF) closed its first institutional over-subscribed bought deal financing for $3.5 million.
Investors love the domes-all 9 of them. They love the drilling results so far, and the massive drill plan for this year. They love the high-grade lithium.
#4 First in line for new lithium opportunities, with Queen of Pegmatites
Dr. Julie Selway is globally known as the Queen of Pegmatites. No one is more qualified or has more knowledge than her in this field, period.
Pegmatites are rare earth elements that can host several economic commodities, including lithium, tantalum, and cesium, and they are found in large deposits in Ontario.
Selway knows. She's a rare earth expert and one of the most highly sought-after geologists in the world. She's travelled all over Ontario and already worked on some 90 percent of all lithium pegmatites in the province-identifying the top ones.
She hitched her wagon to Power Metals (PWM.V PWRMF) because it's sitting on the best pegmatites. When Power Metals hit substantial mineralization on its 8th hole, Selway dropped everything to work with the company on a full-time basis. She was hooked at that point, and so were investors.
#5 Endless News Flow
The drills start drilling again in April, and once that happens, the news flow should be continuous. But it will start even before then as the market awaits results from January drilling at Case Lake.
Pretty soon, Power Metals (PWM.V; PWRMF) could cease being an exploration story and start being one of the most brilliant hard-rock lithium development stories in the world.
And when investors get wind of the tax benefits of hard-rock lithium mining in Ontario, we expect the interest to spike further. Ontario offers flat 10-percent mining royalties, with no tax on the first $10 million in annual sales for three years in a new mine. The Latin American 'lithium triangle' can't come close to this tax set-up.
We're looking at the company that managed to win over the most sought-after hard-rock lithium geologist in North America, and put them at the front of the line for optioning new acquisitions. We're looking at a company that, come Spring, will be at the height of a 2018 drilling season that has the potential to be the biggest thing in hard-rock mining this year.
Other companies to watch:
Newmont Mining Corp (NYSE: NEM) Founded over 100 years ago, Newmont Mining Corporation is one of the leading mining companies in the world. The company holds assets in Peru, Australia, Ghana, Indonesia, Mexico, and around the United States. Primarily focusing on gold and copper, Newmont has steadily carved out a name for itself among those in the industry.
Agnico Eagle Mines Ltd (NYSE: AEM) Canadian based miner, Agnico Eagle Mines is an especially noteworthy company for investors. Why? Between 1991-2010, the company paid out dividends every year. With operations in Quebec, Mexico, and Finland, the company also is taking place in exploration activities in Europe, Latin America, and the United States. This is certainly a company with tremendous potential that grows better by the day.
Alexco Resource Corp (NYSE: AXU) operates on two sides of the mining spectrum. Its mining business operates in the Keno Hill Silver District in Canada's Yukon Territory, historically one of the highest-grade silver districts in the world, having produced over 214 million ounces of silver. Alexco is a focused and driven company with proven exploration, development, and operational skills.
Wheaton Precious Metals Corp. (NYSE: WPM) is Canadian precious metals streaming company, focusing primarily on gold and silver sales. The company produces a massive 26 million ounces of silver, and sells over 29 million, produced by the links of industry giants Barrick Gold and Goldcorp.
Alphabet (NASDAQ: GOOG): With a market cap of over $657 billion, this is the second-largest by market capitalization in the S&P 500. We love Alphabet because its foundation is intellectual property-not tangible assets. Oh, and self-driving cars … definitely a huge part of the innovation in energy and artificial intelligence. As an early entry into the self-driving car world, Alphabet's innovations have paved the way for a transportation revolution.
By. Charles Kennedy
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This news release contains forward-looking information which is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements. Forward looking statements in this release include that prices for lithium will retain value in future as currently expected; that PWM can fulfill all its obligations to maintain its properties; that PWM's property can achieve drilling and mining success for lithium, that the lithium extraction process being developed will be cost effective and can work much more quickly that other extraction technologies; that the process can be commercialized for large scale production; that PWM can use the newly developed process, if successful, to reduce its costs of production; that high grades found in samples are indicative of a high grade deposit; that high-grade lithium is in sufficient quantities at surface to keep drilling costs down; that batteries and EVs will continue to use large amounts of lithium; and that PWM will be able to carry out its business plans. These forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Risks that could change or prevent these statements from coming to fruition include that the Company may not be able to finance its intended drilling program, aspects or all of the property's and the new process development may not be successful, mining of the lithium may not be cost effective, PWM may not raise sufficient funds to carry out its plans, changing costs for mining and processing; increased capital costs; the timing and content of upcoming work programs; geological interpretations and technological results based on current data that may change with more detailed information or testing; potential process methods and mineral recoveries assumptions based on limited test work with further test work may not be viable; competitors may offer cheaper lithium; more production of lithium could reduce its price; alternatives could be found for lithium in battery technology; the availability of labour, equipment and markets for the products produced; and despite the current expected viability of its projects, that the minerals cannot be economically mined on its properties, or that the required permits to build and operate the envisaged mines cannot be obtained. The forward-looking information contained herein is given as of the date hereof and the Company assumes no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.
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