Lithium and the SPMT Plan Moving Forward... I think I have an idea what J Crew is now up to. They maintained the Cypress lithium claims and have lucked out, with interest retrurning alongside the exploration of technologies to exploit lihtium clay. Yes, TESLA has indicated it is interested in exploring technologies to extract lithium from clay. But they won't do so unless the economics of it make sense. As it stands world lithium prices are down, at the same time that demand is up. Meaning, the world is awash in lithium.
Lithium prices are up a bit since the start of 2021 though. Likely in anticipation of an economic recovery from covid. But, honestly, it would have to go pretty high to make lithium clay attractive. And thats a far shot. Most projectections have lithium prices stabalizing in a few years, but not necessary going way up.
The newest results from drill SPMT Clayton drill holes 6 and 9 are above the economic cut off of 900. So, being past that hurdle is something. Hole 6 average grade is 966 Li over 220 feet. Hole 9 is 950. Not bad. These results are not as good as Cypress though. They have higher grades over a proven area.
I think SPMT plans to drill other areas of Clayton and prove up more lithium. And the disparate properties in the area make it the only way for them to move on it. If J Crew actually spin SPMT Li into another company this is just like them doing a reverse split. Equally likely they will issue more shares once SPMT share price goes up. They are running low on funds and need to keep the lights on. Also, they need to fund more lithium exploration. It would be wise for the company to not renew claims on some of those long shot silver/gold proximity plays they have going on.
The problem continues to be the vulnerability of the company to a reverse split. Being over 200 million shares at this point in exploration isn't exactly laudable. In fact, it shines a light on how poor J and J are at execution and managing a business. Then again these guys are closeology clowns. They are aware that the grey zone news releases they whip up aid and abet those here who bought at a penny and are actively pumping the stock. Its possible that they are in fact making money from that in underhanded ways.
Some are going to jump on the SPMT bandwagon because of these restults today. SPMT will spike up for a few days and then correct back downwards.
Take a look at this:
https://www.cypressdevelopmentcorp.com/site/assets/files/3934/2020-05-19-clayton-pre-feasibility.pdf
Lithium increased 7,500 points or 16.13% since the beginning of 2021, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity.
Jul2018Jul2019Jul2020Jul2021
54000
Lithium Carbonate (CNY/T) 39000.00