How to invest in Lithium juniors...
https://mining101.blogspot.com/2009/08/other-than-jim-dines-mining101-told-you.html
Now that lithium has hit mainstream - it means that there are alot ofconfused general public investing blindly. CNBC is covering it weekly -Byron Securities are smart and picking up all the top juniors they like- financing (bought deals) already completed for TNR Gold Corp.
https://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.
Thosecompanies may present a stable and for the most part a secureinvestment thanks to due dilligence being done already by majorindustry analysts and fund managers - but what if you are looking forhigher 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)
With2 large projects in Nevada - potential for a new lithium brine reserveand proximity to the only producing lithium brine project in US(Silverpeak) - this one is a no brainer.
Fish Lake Valley
Idon't need much convincing after United States Geological Survey tellsyou there's lithium in 'em hills! Furthermore - they've even donesampling for you - for TNR and Int' Lithium to pick up a project ofthis magnitude tells you how early these guys got in...!!
Lithiumbrine has been known in Fish Lake Valley since the middle of the lastcentury and received attention from the US Geological Survey during the1970's during a lithium reconnaissance program to identify explorationtargets similar to Clayton Valley. Fish Lake Valley is one of the twomost prospective areas identified in that study. In spite of thisrecommendation,
the valley does not appear to have received much serious attention.
Drilling and surface brine sampling was conducted by the USGS during the 1970s.
Comparethose results ppb to other current producers - I think you willunderstand why this company has gone from $0.03 lows of 2009 to $0.37high last week.
Mudd Lake
TwentyPlacer 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 bytwo-wheel drive vehicles. Mud Lake occupies a depression in thesouthern end of Ralston Valley. The basin is approximately 5 miles wideand 5 miles long and has a surface area of about 25 square miles. Theplaya is bounded by the Cactus Range and Monitor Hills to the east,Goldfields, Nevada to the south, Alkali Valley to the west, and RalstonValley to the north.
This group has gone up significantly from its lows of 200 *$0.035 to highs of $0.37. Upside remainsone of the best of all the lithium juniors - and the fact they got inlithium so early means TNR can likely option projects off tolate-comers such as LMR, SOI, MCI, EFG, and many other junior companieslooking to raise cash through getting the commodity-of-the-month.
Originallyonly looking to refurbish and restart pegmatite Quebec mine in Canada,CLQ has since then started exploring options in Nevada's Great Basinfor lithium brines.
Biggestportfolio holders of lithium brines in Nevada remains to be TNR Gold(TNR:TSX International Lithium) and Rodinia Minerals (RM:TSX)
CLQhas gone up significantly and remains a wise investment choice. Itwould be very interesting to keep watch on the development withMitsui's one-year marketing deal. From their recent press releases it'sodd how they are announcing recovery rates and marketing deal - butdoesn't seem like production is going to be a realistic level withinthe year.
Regardless - definitely one of the more advanced lithium pegmatite playersaround. $0.55 would be a reasonable entry point...Mining 101 coveredCLQ back from its $0.26 price levels, easily +200% gain so far forloyal readers.
Funny enough their logo and site even looks like Western Lithium!
CNYstarted as a tightly held shell named Coniaga Resources (CNY) funded bywell connected Vancouver brokerage group Axeman Financial. The meteoricshare 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!
Whilewe all know pegmatites only have limited appeal - CNY/ LI should begiven credit that it attracted very good names to its Management &Board.
LithiumOne Inc. has released the first results from its phase 2 diamond drillprogram at the James Bay lithium project in Quebec. Highlights of theresults from the first 17 holes include 10.50 metres of 2.38 per centLi2O and 22.50 m of 1.51 per cent Li2O. All drill holes haveintersected significant pegmatite, with 16 of the 17 drill holesreturning intersections with grades between 1.10 and 2.38 per cent Li2Oover significant widths, and many intersections lying within 50 metresof the surface. Pegmatite intercepts greater than five metres aresummarized in the table.
Recentnews from first round of drilling aren't too bad either - nothing toowide and pretty much on par with drilling USGS past results from TNR'sOntario projects (their results should be out soon too), neverthelessMining101 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. Whyon earth would you bother recovering lithium from hectorite and rely onunproven lithium recovery methods is beyond me.
Although higher tide raises all boats - WLC does not present arealistic 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
TheInternational Speculator in its July 1, 2009, issue, says buy WesternLithium Canada Corp., now 65 cents, officially, "Buy under C$0.50." Thenewsletter 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 forinvestors to follow because of the gap between the trading price andthe buy price. The result is we have a fudged buy that really means donot buy. The Speculator's writer scans the press releases and says hisNorth American lithium speculation continues to advance its KingsValley lithium project in Nevada. He notes the lack of press releases;talking points are few. He figures the news slump and slow marketincrease the odds of getting a better entry point. That means investorsshould hold out for 50 cents or better. Aggressive buyers can try for40 cents, in what the writer calls a "stink bid."