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Critical Elements Lithium Corp V.CRE

Alternate Symbol(s):  CRECF

Critical Elements Lithium Corporation is a Canada-based lithium exploration company. The Company is engaged in the acquisition, exploration, development and processing of critical minerals mining properties in Canada. Its projects include Rose Lithium-Tantalum, Rose North, Rose South, Arques, Bourier, Dumulon, Duval, Nisk, Lemare, Caumont, and Valiquette. The Rose Lithium-Tantalum property consists of over 473 claims covering a total area of over 24.99 square kilometers (km2). It lies in the northeastern part of Superior Province, within the Eastmain greenstone belt. The Rose North property consists of about 31 claims covering a total area of over 16.14 km2. The Arques Property is composed of one block totaling around 136 claims covering an area of 6,840.93 hectares (ha) over 18 kilometers (kms) in length in a Southwest-Northeast direction. Bourier Property is comprised of over 304 claims with an area of 15,616.47 ha for over 30 kms. Rose South property consists of over 280 claims.


TSXV:CRE - Post by User

Post by fundamentalinvestoron Oct 30, 2017 10:18am
200 Views
Post# 26875829

Matt Bohlsen Lithium News - and CRE summary

Matt Bohlsen Lithium News - and CRE summaryLink to article

Summary

Lithium spot and contract price news - Lithium spot prices rise slightly.

Lithium market news - Sam Jaffe sees lithium-ion battery demand rising from 80 GWh this year to 750 GWh in 2026. That's a staggering ~10 fold increase in 10 years.

Lithium company news - Pilbara Minerals lands an off-take funding and equity deal with China's Great Wall Motors.

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Welcome to the October 2017 edition of the lithium miner news. This month we have now seen car companies signing off-take agreements directly with lithium miners to secure lithium supply with the Great Wall Motors (OTCPK:GWLLF) (OTCPK:GWLLY) deal with Pilbara Minerals. This marks a new stage where the car manufacturers are starting to realize the need to lock in their EV metals supply well in advance.

It was another great month for lithium stocks. I first wrote "Lithium Miners Are Booming As Lithium Spot Prices Rise - Which Lithium Companies Should I Buy?" Back then, if you were an early follower of mine, you could have bought SQM for $US19.99, FMC for US$38.16, and Albemarle for US$64.50. Now that was great buying! But don't worry if you have not bought yet, we are still in the first stage of the EV boom with EV market share globally only at ~1%.


Lithium spot and contract price news

During October, 99.5% lithium carbonate China spot prices were up 1.5%, and are up 23% over the past year. Of note, lithium cobalt oxide China spot prices were up 0.33% for the month, and 16.91% over the past year. Of interest, China lithium carbonate prices have risen above lithium hydroxide prices.

Critical Elements [TSXV:CRE] (OTCQX:CRECF)

Last month, Critical Elements announced, "Critical Elements announces positive Feasibility Study with a Pre-Tax NPV 8% of $1.257 B and a Pre-Tax IRR of 48.2% for its Rose Lithium Project."

On October 20, Critical Elements announced, "Critical Elements files NI-43-101 Technical Report for the Rose Lithium-Tantalum Feasibility Study."

Highlights of the Feasibility Study, previously reported by Critical Elements on September 6, 2017, are as follows:

  • Average annual production of 186,327 tonnes of chemical grade lithium concentrate.
  • Average annual production of 50,205 tonnes of technical grade lithium concentrate.
  • Average annual production of 429 tonnes of tantalum concentrate.
  • Expected life of mine of 17 years.
  • Average operating costs of $66.56 per tonne milled, $458 (US$344) per tonne of concentrate (all concentrate production combined).
  • Estimated initial capital cost $341.2 million before working capital.
  • 100% equity basis for project.
  • Average gross margin 63.6%.
  • After-tax NPV of $726 million (at 8% discount rate), after-tax IRR of 34.9% and price assumption of US$1,500 per tonne technical grade lithium concentrate, US$750 per tonne chemical grade lithium concentrate, US$130 per kg tantalum pentoxide.
  • Anticipated construction time to start of production of 21 months.

Followers of mine that invested in Critical Elements back in July 2016 after I wrote "Critical Elements - A Lithium Miner With An Exceptional Buying Opportunity", at CAD 0.56 would be sitting on a nice 221% gain.

Upcoming catalysts include:

  • 2018 - Project financing announcements, potential resource upgrade.
  • H1 2018 - Rose stage 2 Feasibility Study due.
  • Q1 2020 - Stage 1 production (50ktpa technical grade spodumene + 175ktpa chemical grade spodumene) is expected to begin.
  • Q1 2022 - Stage 2 production (the 175ktpa chemical grade spodumeme will be converted to 24ktpa lithium carbonate) is expected to begin.
  •  
 
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