Goat Industries Ltd C.GOAT

This New Extraction Technology on Verge of Being Disruptive

[VbayNo2]

This microcap’s big breakthrough allows them to mine and refine 99.5% pure lithium carbonate in hours, instead of years.1

Editorial Feature | Oct 14, 2022 | Industry 

 

• Brains have bested brawn, as a new technology looks set to revolutionize lithium extraction from brine, allowing under $1 Spey Resources Corp. (CSE: SPEY, OTC:SPEYF) to move quickly towards production.
• The company could soon blitz the battery market with lithium carbonate from their Incahuasi holdings, now that they’re preparing for initial test production.
• Plans should kickoff in short order, as the mining team is well-versed in what it takes to make that happen. Their project leader explored and built the lithium processing plant at Rincon, which recently sold to Rio Tinto for $1 billion.
• And now, on the heels of a Ford – Rio Tinto partnership to secure their battery material supply chain, Toyota is following suit. Just 10 days later, the automaker announced their joint venture with Panasonic has entered into a supply agreement with Ioneer for 4,000 tonnes of lithium carbonate per year.

 

From cutthroat auctions, and multi-billion-dollar mergers, to a huge advancement in mining technology… The events in the lithium market have understandably garnered interest from investors of all walks of life. And for good reason. The price of lithium carbonate alone is a clear sign of the earnings that could await the right moves into lithium.

A year ago, in June, a metric ton of lithium carbonate sold for about $10,000.2 At the time, it was said to be an outrageous price. 

Just over one year later, that same ton of lithium holds a price tag of over $70,000.3

The price of a metric ton lithium carbonate is usually expressed in Chinese Yuan. In June 2021, it was as low as CNY69736 ($10,470). By June 2022, a ton was going for CNY468500 ($70,342).

Yet, the most stunning fact about that 600% price hike is this: investors still have not missed the boat with lithium.

As surprising as this is, the market is still in its infancy. The era of the lithium-battery-powered electric vehicles is just picking up speed. Fitch Solutions forecasts that between 2021 and 2030, the global EV market will explode to more than 83 million vehicles on the road worldwide, compared to only 300,000 in 2020.4

That’s why there has never been a better time than now to look into Spey Resources Corp. (CSE: SPEY, OTC:SPEYF).

 

Ekosolve Technology Offers Tremendous Advantage Over Spey’s Argentine Competitors

Spey has a proven technology that it’s using to turn lithium brine into 99.5% pure lithium carbonate in hours instead of years.

Moreover, Spey also controls more than 20.2 square miles in Argentina’s lithium-rich and world-renowned Lithium Triangle.

It’s estimated that the Triangle holds about 54% of the world’s lithium resources.5 That’s why it’s home to major publicly traded miners with a combined market cap in excess of $103 billion.6 7They include:

• Jiangxi Ganfeng Lithium (market cap of $23 billion )
• Albemarle (market cap of $27 billion)
• Tianqi Lithium (market cap of $164 billion)
• Sociedad Qumica y Minera de Chile (market cap of $27 billion)
• and Mineral Resources Ltd. (market cap of $10 billion)

Make no mistake about it, Spey Resources Corp. (CSE: SPEY, OTC:SPEYF)  is right at home among those giants, because it has something they don’t… Ekosolve.

Ekosolve is a proprietary mining technology that uses solvents to rapidly separate lithium from brine and into lithium carbonate.

Spey Resources licensed Ekosolve from the University of Melbourne, Australia, which developed and patented it. Initially, the cutting-edge technology was developed to make lithium mining from hard rock / spodumene economical.

But, when this technology is used for leeching lithium from brine, the process is so streamlined it takes about three hours to produce lithium carbonate.

That’s opposed to nearly two years with brine that evaporates the traditional way in collection ponds.

Ekosolve also has a massive advantage when it comes to all-in mining costs, mainly due to the technology’s ability recover so much lithium from the brine: at least 90% with a 99.5% purity.

Thanks to Ekosolve, Spey Resources Corp. (CSE: SPEY, OTC:SPEYF) cost per metric ton should be a fraction of the price of traditional lithium brine operations.

S&P Global Market Intelligence found that the total all-in cash costs for a traditional brine operation is about $5,580.9

 

Now, here’s the real kicker. Ekosolve’s startup costs are also friendly.

 

That means Spey Resources would have the capability to quickly establish a sizable processing plant.

That could translate to a significant return and cost savings on the initial test production.10

Spey Resources Corp. (CSE: SPEY, OTC:SPEYFCSE: SPEY, OTC: SPEYF) could be one of those rare junior natural resource company that doesn’t need a merger or buyout to become a major player in the lithium mining industry

 

Big Money In Argentina

Of Spey’s two Argentine properties, the Incahuasi project in the world-famous Salta Province, is the one investors should focus on. Called the Candela II project, its neighbors are Jiangxi Ganfeng Lithium (OTC:GNENF) and Allkem Ltd (OTC:OROCF).

The two majors command substantial share prices, with Ganfeng trading about $12, with a $23 billion market cap, and Allkem around $8.50, with a $5 billion market cap.

Neither of Spey’s acclaimed neighbors are currently using Ekosolvetechnology.

Ganfeng, however, is hungry. In the past year, they spent nearly $300 million acquiring Argentina-based projects. 

Their partner, Lithium Americas just dropped $491 million to acquire Millennial Lithium. It’s all part of a trend that found Chinese lithium miners and battery makers investing a whopping $1.58 billion on development-stage lithium projects, according to S&P Global Market Intelligence.12

The demand for new lithium projects is so extreme right now, that an auction for a controlling stake in a Chinese mine garnered 3,448 bids and ultimately sold for about $299 million.13

But that’s not the crazy part.

According to Bloomberg, more than 980,000 people watched the auction online over the course of the five-day event.

That’s understandable when you factor in that the International Energy Agency forecast that the price for lithium, cobalt and nickel will remain elevated for years to come.14

Fortunately, North American investors don’t have to jump through hoops to invest in an Argentina lithium opportunity.