On The Cusp Of 2 Major Discoveries! Small-cap lithium plays
Consider the following quote about lithium brine opportunities, once up and running, the op-ex and production profile of brine projects are more easy to forecast and less prone to cost inflation from ore depletion and other known unknowns. According to a Credit Suisse report,
"Lithium brine deposits typically outperform hard rock and clay lithium sources on cost, sustainability and permitting. This gap is becoming more pronounced when we take into account technological advancements in brine processing....even though lithium is relatively abundant, it's the 33rd most common element — it’s very diffuse throughout nature, meaning that collecting and concentrating it is a very difficult task."
Yes, it still takes years to go from exploration to initial production, but the cost, managerial resources and time of proving up an economically viable project are considerably less. Time is money in both methods of extraction. Dajin Resources Corp, (DJI.V) (DJIFF) is an example of an early-stage company with substantial, 100% owned lithium brine prospects in both Nevada and Argentina. In Nevada, Dajin's owns two properties, one of which is 7km from the only producing brine project in North America. In Argentina, Dajin has a large, strategic property that could be explored, especially if lithium prices continue to increase.
Funding large-scale projects of any sort, iron ore, copper, gold, etc have been a tremendous problem for the past few years. It seems that "PEAs" done in 2010-2012 are routinely recast to show stronger economics and lower upfront costs. With large checks for huge projects nearly impossible to secure, it's no wonder companies are trying to deliver exactly what strategic and financial investors demand, lower risk projects. What makes a project less risky? Smaller scale, green, (less fossil fuel use/emissions), a predictable and sustainable plan of action to share with local communities and government agencies, a clear path from exploration to reclamation and therefore a better chance of obtaining project financing. That is exactly what Dajin Resources aims to do.
Dajin has demonstrated, solid financial backing allowing for the possibility of (Joint Venture) partnering with peers and farming out minority interests in their 100% owned properties. Dajin has both time and options, a rare combination in this brutal natural resource downturn. Dajin trades at one of the lowest market caps of the very few viable (my opinion only) lithium plays. Those looking for pure-play lithium exposure should include Dajin on their watch lists and due diligence review. A good place to start is at Dajin's excellent Corporate Website (Dajin.ca) and their blue-skyed S&P Market Access Profile.