Global Battery Metals Ltd V.GBML

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Wednesday, 22 March 2023

GBML Gets One Step Closer to Becoming the Next PMET

 

Back on January 18, we first called Global Battery Metals Ltd. (GBML.V)(REZZF) at $0.18. Since then, the stock has had some ups and downs with the market, reaching as high as $0.28 and as low as $0.14 before bouncing back to $0.19 on Wednesday. Samples taken at GBML's North-West Leinster Lithium Project in Ireland exhibited traits similar to Patriot Battery Metals Inc. (PMET.V)(PMETF)'s Corvette Property in Quebec, with sample sizes up to 3.75% Li2O or 17,410 ppm. While these samples show potential, GBML is at the very early stages with this project and has a long way to go before getting into the same conversation as PMET. However, this most recent update gets the company one step closer to a large discovery on the European continent where the EU will be as aggressive, if not more, than the United States in trying to secure critical metals. As GBML's market cap sits under $15 million and PMET around $1 billion, there is a lot of room for upside in GBML even if it falls short of becoming the next PMET. 

GBML has an option to earn up to a 90% interest on North-West Leinster, and it isn't the company's only lithium project. It owns and has near term drilling plans on the Lithium King Project in Utah, which is in close proximity to the Nevada North Project of Surge Battery Metals Inc. (NILI.V) (NILIF). See our post here for more details on this project. It also has a lithium project in Newfoundland and two copper or nickel interests. We are up to 1,014 followers on our ValueTrades blog despite not giving out a lot of alerts, a fact that we think is indicative of a successful, diligent and prudent stock picking history. If you like our picks you can also follow this blog by clicking the follow button on the top of the left hand panel. We have 120 followers so far on here. You can also follow us on Twitter @StockTradePicks which has over 5,000 followers.

The company issued the following news release on Monday:

Vancouver, British Columbia--(Newsfile Corp. - March 20, 2023) - Global Battery Metals Ltd. (TSXV: GBML) (OTCQB: REZZF) (FSE: REZ) (the "Company" or "GBML"), a critical mineral exploration company focused on growth-oriented lithium and other battery metal projects, announces multiple drill targets and the potential discovery of up to six LCT (lithium-cesium-tantalum) pegmatite dikes extending across a prospective lithium trend at Prospecting Licence Area 1597 ("PLA 1597"), have now been identified through the return of favourable test results at its Leinster Lithium Project (the "Property" or the "Project").

Following the previously reported identification of a lithium bearing spodumene pegmatite surface boulder train on PLA 1597, key updates include:

• A detailed deep overburden (base of till) program was recently completed for a total of 373 samples covering an area of 600m x 450m over the location of an extensive spodumene pegmatite float boulder train and an associated historically reported trenched bedrock occurrence;
• The interpreted geochemical results indicate the potential discovery of up to six LCT (lithium-cesium-tantalum) pegmatite dikes across the Knockeen target area;
• Follow-up drill program plans, currently calling for up to nine drill pads (with two holes planned per pad), are being finalized;
• ALS Laboratories (Loughrea, Ireland) analysis included comprehensive testing for a specific suite of elements which includes lithium as well as multiple rare earth elements of which cesium and tantalum are typically associated with this type of LCT Pegmatite target;
• Drilling permit submissions are being finalized and will be submitted to the governmental regulatory body as part of the due process for standard screening procedures for drilling programs in Ireland and Europe; and
• A local area drill contractor's availability has been secured and will be mobilized as soon as the permitting is completed.

Michael Murphy, CEO of GBML, said, "These results are both exciting and informative. The deep overburden samples have helped us to zero in on a distinct set of drill targets and the Company has ambitious plans for spring drilling. The potential to drill up to six interpreted dikes along a lithium anomaly trend line across this claim has the team highly motivated about the entire property. We are told the drill permitting process in these areas of Ireland is relatively straightforward and our paperwork is being prepared with the intent to submit in a matter of days. Based on all of our research and testing, the potential to uncover further significant lithium occurrences along the recognized regional scale south-east Leinster LCT pegmatite corridor is a real possibility. Needless to say, we will be moving quickly to verify what we believe we are into."

Exploration to date has included surface lithogeochemical sampling with an associated detailed deep overburden sampling grid - both yielding excellent results and when combined potentially confirming the presence of multiple LCT pegmatite dikes below surface at the Knockeen target on PLA 1597. The pegmatite dike targets are intrusive bodies that typically form swarms of several separate dikes which range in thickness and cross cut the granitic and metasedimentary host rocks. The dikes are typically composed of Spodumene (lithium aluminium silicate in the pyroxene family) as well as accessory minerals including quartz, feldspars and micas. While the lithium content of the samples collected to date are at very significant grades, the supporting trace element geochemistry of the other elements including the Rare Earth Elements (REEs) that occur naturally at very low levels are very important and significant indicators providing corroborative evidence for the presence of the dikes.

Figure 1: Deep Overburden sampling grid showing anomalous lithium (ppm)in linear trends across the Knockeen Prospect.

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/7080/159058_49ecfa0ef48dd9c3_001full.jpg

The Knockeen Prospect has now reached a significant confidence level to plan a staged diamond core drilling program to test the six anomalous geochemical trends. The drill program parameters are being finalized, including plans accounting for up to nine drill pad locations, and discussions are in hand with a drilling contractor. The drilling screening process has commenced with the governmental regulatory body. This process is a standard procedure for all drill programs in Ireland and across Europe.

During the recent and ongoing fieldwork, a total of 66 rock samples were collected and analysed. Assay results of the samples by ALS Laboratories reported Li2O% lithium contents ranging up to 3.75 % Li2O as reported in the press release date January 18, 2023.

In conjunction with this work, the detailed grid comprising of 373 deep overburden (base of till) samples were collected over a closely spaced sample grid over 600m x 450m covering the area of the historical trench as well as the spodumene pegmatite float boulders. The results have been very encouraging and the multi-elemental results have been interpreted to show up to six clear linear anomalous trends, which are anomalous in lithium, as well as the supporting REE elements of cesium and tantalum, which combine to indicate the potential presence of LCT signature pegmatite dykes at shallow depths of between 1m - 7m below ground surface.

The area of the exploration is centred on a locality where a forty-year-old historical company report described a trench excavated at Knockeen Townland which uncovered in bedrock, a 1.8m wide spodumene-bearing pegmatite vein. However, no detailed laboratory assays or geological maps of the trench were reported at that time.

Figure 2: Location of the Knockeen prospect on PLA 1597 showing pegmatite analytical results* and the deep overburden sampling grid (*results previously reported PR 18/01/2023)

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/7080/159058_49ecfa0ef48dd9c3_002full.jpg

Figure 3: Deep Overburden sampling (top) and Spodumene pegmatite samples from Knockeen (bottom)

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/7080/159058_49ecfa0ef48dd9c3_003full.jpg

Please see the Company's NW Leinster Project Overview for additional program details, in addition to the latest version of the Company's Investor Presentation available for download from the GBML website (www.gbml.ca).

When news of the samples were first announced, the company had identified one potential dike from which the samples may have originated from. Now a deep overburden sampling program was completed with 373 samples being taken across an area of 600m x 450m. Six dikes in total have been discovered, and now the company had a pretty clear two-dimensional view of a lithium anomaly trend line. The next stage is to turn that two dimensional view into a three dimensional one. Find out the length of the resource beneath the surface. The company plans to drill 18 holes across the six dikes once it gets the permits in order. This should be on a timeline of weeks. So we expect continued speculation on the stock, and it to rise throughout Q2 upon announcement that drilling is complete and the results are pending. 

GBML's CEO Michael Murphy has been active in getting the word out on these sample results as well as near term drilling plans for the Ireland and Utah properties.  Click here to view the interview conducted by Penny Queen or watch it below. While there is speculation potential over the near-term drilling plans, shareholders can also be assured that Murphy confirmed that he was offered and declined financings. Between the existing cash balance and warrant exercises, the company has enough cash to fund these programs.

Disclosure: We are long GBML.V

 

Posted by NNR at 23:10  

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Wednesday, 8 February 2023

GBML: The Next NILI or PMET? Could be Both

 

Back on October 21, we first announced our bullish call on Surge Battery Metals Inc. (NILI.V) (NILIF) when it was $0.10. At the time it was based on samples within drill results that showed as high as 4,500 ppm of lithium in 5 foot intervals. The stock stayed in the 10 cent range for a couple of weeks before rocketing up as high as $0.46 as the drill results started coming in and hype reached fever pitch. Global Battery Metals Ltd. (GBML.V)(REZZF) is in a very similar situation to NILI back a few months ago. Since we first called it on January 18 at $0.18, the stock spent a couple of weeks churning in the $0.16 to $0.20 range. 1.3 million warrants with a strike price of $0.18 were to expire on February 8. Given the extremely short time frame left to these warrants, it made sense that warrants holders would sell stock at $0.20 and lock in a couple of pennies profit by exercising them, rather than letting them expire. With these warrants likely exercised and in the rear view mirror, the overhang of shares is no longer an issue. With GBML having broken out above $0.20 over the past couple of days, we think it's perfectly set up to go on a run in a similar way to NILI. The stock closed today at $0.22, the highest close it's had since we first wrote about it. 

We think that GBML has great potential to become the next big lithium junior after announcing outstanding sample grades of lithium in their large property in Ireland. Grades that are several times higher than NILI's and are closer to the type of grades seen from Patriot Battery Metals Inc. (PMET.V)(PMETF). We initially considered GBML to have potential to be the next NILI or PMET, but after further research on its two lithium properties and interviews from the CEO, we think it has potential to be the next NILI and PMET. At a $15 million market cap, GBML is an absolute steal. We are up to 1,014 followers on our ValueTrades blog despite not giving out a lot of alerts, a fact that we think is indicative of a successful, diligent and prudent stock picking history. If you like our picks you can also follow this blog by clicking the follow button on the top of the left hand panel. We have 118 followers so far on here. You can also follow us on Twitter @StockTradePicks which has over 5,000 followers.

Why do we say that GBML has the potential to be the next NILI and PMET? Simple, the company is actively drilling in two properties that share characteristics to the main properties for each of these stocks.  The Lithium King Project in Utah and the North-West Leinster Lithium Project in Ireland which is where the high grade samples were taken. GBML's CEO Michael Murphy has been active in getting the word out on these sample results as well as near term drilling plans for both properties.   Click here to view the interview conducted by Penny Queen or watch it below. While there is speculation potential over the near-term drilling plans, shareholders can also be assured that Murphy confirmed that he was offered and declined financings. Between the existing cash balance and warrant exercises, the company has enough cash to fund these programs.

First we'll talk about the Lithium King Project in Utah. Ourselves and other NILI investors have made a point about NILI's Nevada North Project being in reasonably close proximity to Thacker Pass. But also far away enough in an unexplored region that it has unknown and untapped upside potential. When looking at a map, we see that GBML's Lithium King is actually much closer to Nevada North than Thacker Pass is:

 

 

 

 

 

 

 

 

 

So when we are talking about NILI's resource and how it may be the best new find there is, especially relative to its market cap, there is a decent chance that Lithium King will have similar kind of results. Murphy stated that historical USGS logs had samples as high as 1,200 ppm lithium starting 10 meters deep. This is similar depth as NILI's findings, though on the lower end of NILI's grade range. Murphy spoke well of Utah's Bureau of Land Management and expects drilling to be able to start in several weeks. The expectation is to drill down to 1,000 meters on the property, so we will see if grades improve as they so often do with many of the Nevada projects once you dig down below 100 meters. 

GBML's North-West Leinster Lithium Project in Ireland exhibits traits similar to PMET's Corvette Property in Quebec, with sample sizes up to 3.75% Li2O or 17,410 ppm. The news from a few weeks ago: 

Highlights Include:

• Of the 66 total surface samples analyzed, assay results show that 47 returned grades above 1% Li2O - with grades as high as 3.75% and 3.63% (source: ALS Laboratories, Loughrea, Ireland)
• Knockeen and Carriglead Prospects are reported at:
  • Knockeen: Out of a total of 56 samples, 41 samples graded above 1% Li2O, of which 20 graded above 2% Li2O and of which two graded above 3% Li2O (Sample AES 63003 (3.63% Li2O) and Sample AES 63033 (3.75% Li2O))
  • Carriglead: out of a total of 10 samples, six samples graded above 1% Li2O, of which one sample analysed above 2% Li2O (Sample AES63504 (2.09% Li2O))
• The program of intensive prospecting has consolidated the extent of the spodumene pegmatite boulder train at surface and significantly enhanced the resolution of the dispersion zone
• The known extent of the boulder train is now over 1km in length from NE to SW, 0.5km from NW to SE and is still open in all directions at Knockeen

Vancouver, British Columbia--(Newsfile Corp. - January 18, 2023) - Global Battery Metals Ltd. (TSXV: GBML) (OTCQB: REZZF) (FSE: REZ) (the "Company" or "GBML"), a critical mineral exploration company focused on growth-oriented lithium and other battery metal projects, announces initial field exploration assay results (see Table 1) from its North-West Leinster Lithium Project (the "Property" or the "Project"), focused primarily on Prospecting Licence Area ("PLA") 1597 in Ireland.

Sampling Program Highlights

Sample_ID	Program	Li_ppm	Li2O%*
AES63003	Follow Up Sampling Dec 2022	17,410	3.75
AES63033	Follow Up Sampling Dec 2022	16,860	3.63
AES63519	Follow Up Sampling Dec 2022	13,160	2.83
AES63015	Follow Up Sampling Dec 2022	13,050	2.81
AES63029	Follow Up Sampling Dec 2022	12,920	2.78
AES63042	Follow Up Sampling Dec 2022	12,580	2.71
AES63014	Follow Up Sampling Dec 2022	12,200	2.63
AES63021	Follow Up Sampling Dec 2022	12,040	2.59
AES63018	Follow Up Sampling Dec 2022	11,980	2.58
AES63011	Follow Up Sampling Dec 2022	11,820	2.54

 

Table 1: Highlight results from the prospecting program (December 2022)
* Li2O % = Li ppm % (x 2.153)

A full list of comprehensive results can be found in Appendix 1.

"The high-grade assay results from our most recent surface sampling program are extremely encouraging and reassure our early diligence in the Project," said Michael Murphy, Chief Executive Officer of GBML. "The strong concentration of confirmed lithium-bearing pegmatites is helping the team target the source and plan a strong drilling campaign to test the limits of the Property. We look forward to receiving our overburden assay results."

Field Exploration Program Update

PLA 1597 forms part of the Company's Property exploration block, which is operated under an exclusive Option and Earn-in agreement with Technology Minerals Plc, the first-listed UK company focused on creating a sustainable circular economy for battery metals, and its wholly owned subsidiary LRH Resources Limited ("LRH").

The current phase of detailed exploration work is centred on an area where a forty-year-old historical company report1 described a trench excavated at Knockeen Townlands on PLA 1597 (Figure 1) which, uncovered in bedrock, exposed a 1.8m wide spodumene-bearing pegmatite vein. However no detailed laboratory assays or geological maps of the trench were reported at that time. Historical prospecting around the trench also reported the occurrence of up to 10 large boulders of spodumene bearing pegmatite at surface.

The current exploration program carried out under LRH management by Aurum Exploration Services Limited included an initial reconnaissance visit in July 2022 totalling six samples. This was followed by a more detailed prospecting and lithogeochemical survey on two areas at Knockeen and Carriglead Townlands in December 2022 and totalling 66 samples (Figure 1 and Table 2).

Prospect	Program	No
Carriglead	Recon Sampling July 2022	2
Knockeen	Recon Sampling July 2022	4
Prospect	DD Sampling July 2022	No
Carriglead	Follow Up Sampling Dec 2022	10
Knockeen	Follow Up Sampling Dec 2022	56
Prospect	Program	No
Carriglead	Total	12
Knockeen	Total	60

 

Table 2: Results from reconnaissance prospecting (July 2022 and December 2022)

Preliminary Reconnaissance July 2022

Two areas at Knockeen and Carriglead Townlands were targeted with an initial reconnaissance visit in July 2022, during which six samples - four at Knockeen and two at Carriglead - were collected. Analytical results confirmed the presence of the historically reported spodumene pegmatite boulder train and returned very significant grades of Li2O in all the samples. These results have been reported previously but are reproduced here for continuity (Table 3).

Sample_ID	Program	Li_ppm	Li2O_%*	Prospect
210724CL05	Recon Sampling July 2022	13,700	2.95	Knockeen
210724CL03	Recon Sampling July 2022	11,200	2.41	Knockeen
210724CL04	Recon Sampling July 2022	11,000	2.37	Knockeen
210724CL02	Recon Sampling July 2022	3,240	0.70	Knockeen
AES61138	Recon Sampling July 2022	7,470	1.61	Carriglead
AES61137	Recon Sampling July 2022	3,550	0.76	Carriglead

 

Table 3: Results from reconnaissance prospecting (July 2022)
* Li2O % = Li ppm % (x 2.153)

December 2022 Detailed Prospecting and Lithogeochemistry

In December 2022 an extensive prospecting and lithogeochemistry survey was completed covering the two areas identified during the reconnaissance program. A total of 56 samples were collected at Knockeen and 10 at Carriglead. The results were highly encouraging with coherent boulder trains of spodumene bearing lithium pegmatites mapped out across the prospects. The highlight sample results are shown in Table 1 and the full results are appended in Appendix 1 to this release in Tables and 4 and 5 with associated maps showing the locations in Figures 2 (Knockeen) and Figures 3 (Carriglead) below.

Figure 1: Location of the Knockeen and Carriglead target areas PL 1597 showing sample locations

To view an enhanced version of Figure 1, please visit:
https://images.newsfilecorp.com/files/7080/151682_fb825e2064587838_001full.jpg

Figure 2: Location of samples and assay results from the Knockeen target area

To view an enhanced version of Figure 2, please visit:
https://images.newsfilecorp.com/files/7080/151682_fb825e2064587838_002full.jpg

Figure 3: Location of samples and assay results from the Carriglead target area

To view an enhanced version of Figure 3, please visit:
https://images.newsfilecorp.com/files/7080/151682_fb825e2064587838_003full.jpg

Photo 1: Spodumene pegmatite samples from Knockeen and Carriglead

To view an enhanced version of Photo 1, please visit:
https://images.newsfilecorp.com/files/7080/151682_fb825e2064587838_004full.jpg

Please see the Company's NW Leinster Project Overview for additional program details, in addition to the latest version of the Company's Investor Presentation available for download from the GBML website (www.gbml.ca).

Appendix 1: Analytical Results

Sample_ID	Program	Li_ppm	Li2O%*	Prospect
AES63003	Follow Up Sampling Dec 2022	17,410	3.75	Knockeen
AES63033	Follow Up Sampling Dec 2022	16,860	3.63	Knockeen
AES63519	Follow Up Sampling Dec 2022	13,160	2.83	Knockeen
AES63015	Follow Up Sampling Dec 2022	13,050	2.81	Knockeen
AES63029	Follow Up Sampling Dec 2022	12,920	2.78	Knockeen
AES63042	Follow Up Sampling Dec 2022	12,580	2.71	Knockeen
AES63014	Follow Up Sampling Dec 2022	12,200	2.63	Knockeen
AES63021	Follow Up Sampling Dec 2022	12,040	2.59	Knockeen
AES63018	Follow Up Sampling Dec 2022	11,980	2.58	Knockeen
AES63011	Follow Up Sampling Dec 2022	11,820	2.54	Knockeen
AES63023	Follow Up Sampling Dec 2022	11,620	2.50	Knockeen
AES63028	Follow Up Sampling Dec 2022	11,580	2.49	Knockeen
AES63041	Follow Up Sampling Dec 2022	11,570	2.49	Knockeen
AES63037	Follow Up Sampling Dec 2022	11,510	2.48	Knockeen
AES63016	Follow Up Sampling Dec 2022	11,460	2.47	Knockeen
AES63044	Follow Up Sampling Dec 2022	11,340	2.44	Knockeen
AES63012	Follow Up Sampling Dec 2022	11,180	2.41	Knockeen
AES63008	Follow Up Sampling Dec 2022	9,920	2.14	Knockeen
AES63048	Follow Up Sampling Dec 2022	9,520	2.05	Knockeen
AES63043	Follow Up Sampling Dec 2022	9,360	2.02	Knockeen
AES63027	Follow Up Sampling Dec 2022	8,820	1.90	Knockeen
AES63046	Follow Up Sampling Dec 2022	8,790	1.89	Knockeen
AES63516	Follow Up Sampling Dec 2022	8,370	1.80	Knockeen
AES63036	Follow Up Sampling Dec 2022	8,300	1.79	Knockeen
AES63007	Follow Up Sampling Dec 2022	8,090	1.74	Knockeen
AES63026	Follow Up Sampling Dec 2022	8,030	1.73	Knockeen
AES63010	Follow Up Sampling Dec 2022	7,890	1.70	Knockeen
AES63517	Follow Up Sampling Dec 2022	7,910	1.70	Knockeen
AES63512	Follow Up Sampling Dec 2022	7,840	1.69	Knockeen
AES63017	Follow Up Sampling Dec 2022	7,550	1.63	Knockeen
AES63520	Follow Up Sampling Dec 2022	7,370	1.59	Knockeen
AES63049	Follow Up Sampling Dec 2022	7,100	1.53	Knockeen
AES63515	Follow Up Sampling Dec 2022	7,040	1.52	Knockeen
AES63024	Follow Up Sampling Dec 2022	6,190	1.33	Knockeen
AES63031	Follow Up Sampling Dec 2022	6,140	1.32	Knockeen
AES63013	Follow Up Sampling Dec 2022	5,720	1.23	Knockeen
AES63019	Follow Up Sampling Dec 2022	5,420	1.17	Knockeen
AES63030	Follow Up Sampling Dec 2022	5,300	1.14	Knockeen
AES63034	Follow Up Sampling Dec 2022	4,960	1.07	Knockeen
AES63039	Follow Up Sampling Dec 2022	4,790	1.03	Knockeen
AES63022	Follow Up Sampling Dec 2022	4,710	1.01	Knockeen
AES63514	Follow Up Sampling Dec 2022	4,300	0.93	Knockeen
AES63045	Follow Up Sampling Dec 2022	4,290	0.92	Knockeen
AES63025	Follow Up Sampling Dec 2022	3,940	0.85	Knockeen
AES63032	Follow Up Sampling Dec 2022	3,550	0.76	Knockeen
AES63035	Follow Up Sampling Dec 2022	2,680	0.58	Knockeen
AES63009	Follow Up Sampling Dec 2022	1,920	0.41	Knockeen
AES63047	Follow Up Sampling Dec 2022	1,480	0.32	Knockeen
AES63038	Follow Up Sampling Dec 2022	450	0.10	Knockeen
AES63001	Follow Up Sampling Dec 2022	120	0.03	Knockeen
AES63002	Follow Up Sampling Dec 2022	120	0.03	Knockeen
AES63004	Follow Up Sampling Dec 2022	120	0.03	Knockeen
AES63005	Follow Up Sampling Dec 2022	130	0.03	Knockeen
AES63513	Follow Up Sampling Dec 2022	100	0.02	Knockeen
AES63518	Follow Up Sampling Dec 2022	80	0.02	Knockeen
AES63006	Follow Up Sampling Dec 2022	60	0.01	Knockeen

Lithium mining and exploration is well underway in South America, Nevada and Quebec, but looking for lithium in Ireland is a relatively new play. That's what could make GBML's North-West Leinster Lithium Property - and by extension its stock -  so special. In a previous interview with GBML's CEO Michael Murphy, he reiterated that the company has 16 licenses covering 65,000 hectares and that the samples in this news release were from one license. In another interview, he stated that the company believes it has identified the dike from which the samples are coming. The dike starts at a depth of two meters, so the access is easy and the cost to drill will be low. Drilling will also start on this property during Q1. 

While the sample grades show up to 3.75% which is comparable to PMET, the company still needs to prove depth and length through actual drilling. PMET is seeing these types of grades over 100 meters, which is a far cry from samples. But the opportunity remains there. PMET has around a $1.5 billion market cap versus GBML at just $15 million. Is it worth it to speculate on GBML at 1% of PMET's valuation? We think that it's a fair risk to reward trade-off. 

A lot of focus has been on building the EV supply chain in the Americas, that's why places like South America, Nevada and Quebec have been so hot when it comes to lithium. The Europeans are doing the same thing. So if GBML's property in Ireland does indeed confirm the existence of lithium, it will be ideally located for that. 

When analyzing GBML's near-term trading potential, we can use NILI as a recent example of a lithium stock with a similar market cap, similar news and similar speculative potential on pending drill results to try to predict where GBML is headed. We expect the stock price to move up at least a double from here and likely more in the coming weeks in a similar fashion to NILI. GBML has a pretty tight share structure with only 68 million shares outstanding. Inclusive of the likely fully exercised expiring set of warrants, that count will still be less than 70 million. The CEO has claimed that he is turning away recent financing offers so we don't expect any further overhang on the stock price. The combination of being in a hot lithium industry, having not one but two places to drill and no need to dilute any time soon, we think GBML is in an ideal position to go on a run. 

Disclosure: We are long GBML.V

 

Posted by NNR at 16:06  

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Tuesday, 24 January 2023

GBML: The Next NILI or PMET? Could be Both by the End of Q1

 

Back on October 21, we first announced our bullish call on Surge Battery Metals Inc. (NILI.V) (NILIF) when it was $0.10. At the time it was based on samples within drill results that showed as high as 4500 ppm of lithium in 5 foot intervals. The stock stayed in the 10 cent range for a couple of weeks before rocketing up as high as $0.46 as the drill results started coming in and hype reached fever pitch. Global Battery Metals Ltd. (GBML.V)(REZZF) is in a very similar situation to NILI back a few months ago.  We think that it has great potential to become the next big lithium runner after last week's news of outstanding sample grades of lithium. Grades that are several times higher than NILI's and are closer to the type of grades seen from Patriot Battery Metals Inc. (PMET.V)(PMETF). After a few days in the $0.16-$0.17 range, likely flushing out $0.10 private placement shares that recently came off their hold period, GBML is starting to creep up in NILI-like fashion back when it first broke out from $0.10. 

This is a follow up to our first report from last week as an update interview from GBML's CEO has us thinking that instead of this being the next NILI or PMET, it has potential to be the next NILI and PMET.  We are up to 1,012 followers on our ValueTrades blog despite not giving out a lot of alerts, a fact that we think is indicative of a successful, diligent and prudent stock picking history. If you like our picks you can also follow this blog by clicking the follow button on the top of the left hand panel. We have 117 followers so far on here. You can also follow us on Twitter @StockTradePicks which has over 5,000 followers.

Click here to view the interview with GBML's CEO Michael Murphy.

Why do we say that GBML has the potential to be the next NILI and PMET? Simple, the company is actively drilling in two properties that share characteristics to the main properties for each of these stocks. First we'll talk about the Lithium King Project in Utah. Ourselves and other NILI investors have made a point about NILI's Nevada North Project being in reasonably close proximity to Thacker Pass. But also far away enough in an unexplored region that it has unknown and untapped upside potential. When looking at a map, we see that GBML's Lithium King is actually much closer to Nevada North than Thacker Pass is:

 

 

 

 

 

 

 

 

 

So when we are talking about NILI's resource and how it may be the best new find there is, especially relative to its market cap, there is a decent chance the Lithium King will have similar kind of results. In the interview, GBML's CEO stated that historical USGS logs had samples as high as 1,200 ppm lithium starting 10 meters deep. This is similar depth as NILI's findings, though on the lower end of NILI's grade range. GBML expects to drill down to 1,000 meters on the property in Q1, so we will see if grades improve as they so often do with many of the Nevada projects once you did down below 100 meters. 

GBML's North-West Leinster Lithium Project in Ireland exhibits traits similar to PMET's Corvette Property in Quebec, with sample sizes up to 3.75% Li2O or 17,410 ppm. The news from last week: 

Highlights Include:

• Of the 66 total surface samples analyzed, assay results show that 47 returned grades above 1% Li2O - with grades as high as 3.75% and 3.63% (source: ALS Laboratories, Loughrea, Ireland)
• Knockeen and Carriglead Prospects are reported at:
  • Knockeen: Out of a total of 56 samples, 41 samples graded above 1% Li2O, of which 20 graded above 2% Li2O and of which two graded above 3% Li2O (Sample AES 63003 (3.63% Li2O) and Sample AES 63033 (3.75% Li2O))
  • Carriglead: out of a total of 10 samples, six samples graded above 1% Li2O, of which one sample analysed above 2% Li2O (Sample AES63504 (2.09% Li2O))
• The program of intensive prospecting has consolidated the extent of the spodumene pegmatite boulder train at surface and significantly enhanced the resolution of the dispersion zone
• The known extent of the boulder train is now over 1km in length from NE to SW, 0.5km from NW to SE and is still open in all directions at Knockeen

Vancouver, British Columbia--(Newsfile Corp. - January 18, 2023) - Global Battery Metals Ltd. (TSXV: GBML) (OTCQB: REZZF) (FSE: REZ) (the "Company" or "GBML"), a critical mineral exploration company focused on growth-oriented lithium and other battery metal projects, announces initial field exploration assay results (see Table 1) from its North-West Leinster Lithium Project (the "Property" or the "Project"), focused primarily on Prospecting Licence Area ("PLA") 1597 in Ireland.

Sampling Program Highlights

Sample_ID	Program	Li_ppm	Li2O%*
AES63003	Follow Up Sampling Dec 2022	17,410	3.75
AES63033	Follow Up Sampling Dec 2022	16,860	3.63
AES63519	Follow Up Sampling Dec 2022	13,160	2.83
AES63015	Follow Up Sampling Dec 2022	13,050	2.81
AES63029	Follow Up Sampling Dec 2022	12,920	2.78
AES63042	Follow Up Sampling Dec 2022	12,580	2.71
AES63014	Follow Up Sampling Dec 2022	12,200	2.63
AES63021	Follow Up Sampling Dec 2022	12,040	2.59
AES63018	Follow Up Sampling Dec 2022	11,980	2.58
AES63011	Follow Up Sampling Dec 2022	11,820	2.54

 

Table 1: Highlight results from the prospecting program (December 2022)
* Li2O % = Li ppm % (x 2.153)

A full list of comprehensive results can be found in Appendix 1.

"The high-grade assay results from our most recent surface sampling program are extremely encouraging and reassure our early diligence in the Project," said Michael Murphy, Chief Executive Officer of GBML. "The strong concentration of confirmed lithium-bearing pegmatites is helping the team target the source and plan a strong drilling campaign to test the limits of the Property. We look forward to receiving our overburden assay results."

Field Exploration Program Update

PLA 1597 forms part of the Company's Property exploration block, which is operated under an exclusive Option and Earn-in agreement with Technology Minerals Plc, the first-listed UK company focused on creating a sustainable circular economy for battery metals, and its wholly owned subsidiary LRH Resources Limited ("LRH").

The current phase of detailed exploration work is centred on an area where a forty-year-old historical company report1 described a trench excavated at Knockeen Townlands on PLA 1597 (Figure 1) which, uncovered in bedrock, exposed a 1.8m wide spodumene-bearing pegmatite vein. However no detailed laboratory assays or geological maps of the trench were reported at that time. Historical prospecting around the trench also reported the occurrence of up to 10 large boulders of spodumene bearing pegmatite at surface.

The current exploration program carried out under LRH management by Aurum Exploration Services Limited included an initial reconnaissance visit in July 2022 totalling six samples. This was followed by a more detailed prospecting and lithogeochemical survey on two areas at Knockeen and Carriglead Townlands in December 2022 and totalling 66 samples (Figure 1 and Table 2).

Prospect	Program	No
Carriglead	Recon Sampling July 2022	2
Knockeen	Recon Sampling July 2022	4
Prospect	DD Sampling July 2022	No
Carriglead	Follow Up Sampling Dec 2022	10
Knockeen	Follow Up Sampling Dec 2022	56
Prospect	Program	No
Carriglead	Total	12
Knockeen	Total	60

 

Table 2: Results from reconnaissance prospecting (July 2022 and December 2022)

Preliminary Reconnaissance July 2022

Two areas at Knockeen and Carriglead Townlands were targeted with an initial reconnaissance visit in July 2022, during which six samples - four at Knockeen and two at Carriglead - were collected. Analytical results confirmed the presence of the historically reported spodumene pegmatite boulder train and returned very significant grades of Li2O in all the samples. These results have been reported previously but are reproduced here for continuity (Table 3).

Sample_ID	Program	Li_ppm	Li2O_%*	Prospect
210724CL05	Recon Sampling July 2022	13,700	2.95	Knockeen
210724CL03	Recon Sampling July 2022	11,200	2.41	Knockeen
210724CL04	Recon Sampling July 2022	11,000	2.37	Knockeen
210724CL02	Recon Sampling July 2022	3,240	0.70	Knockeen
AES61138	Recon Sampling July 2022	7,470	1.61	Carriglead
AES61137	Recon Sampling July 2022	3,550	0.76	Carriglead

 

Table 3: Results from reconnaissance prospecting (July 2022)
* Li2O % = Li ppm % (x 2.153)

December 2022 Detailed Prospecting and Lithogeochemistry

In December 2022 an extensive prospecting and lithogeochemistry survey was completed covering the two areas identified during the reconnaissance program. A total of 56 samples were collected at Knockeen and 10 at Carriglead. The results were highly encouraging with coherent boulder trains of spodumene bearing lithium pegmatites mapped out across the prospects. The highlight sample results are shown in Table 1 and the full results are appended in Appendix 1 to this release in Tables and 4 and 5 with associated maps showing the locations in Figures 2 (Knockeen) and Figures 3 (Carriglead) below.

Figure 1: Location of the Knockeen and Carriglead target areas PL 1597 showing sample locations

To view an enhanced version of Figure 1, please visit:
https://images.newsfilecorp.com/files/7080/151682_fb825e2064587838_001full.jpg

Figure 2: Location of samples and assay results from the Knockeen target area

To view an enhanced version of Figure 2, please visit:
https://images.newsfilecorp.com/files/7080/151682_fb825e2064587838_002full.jpg

Figure 3: Location of samples and assay results from the Carriglead target area

To view an enhanced version of Figure 3, please visit:
https://images.newsfilecorp.com/files/7080/151682_fb825e2064587838_003full.jpg

Photo 1: Spodumene pegmatite samples from Knockeen and Carriglead

To view an enhanced version of Photo 1, please visit:
https://images.newsfilecorp.com/files/7080/151682_fb825e2064587838_004full.jpg

Please see the Company's NW Leinster Project Overview for additional program details, in addition to the latest version of the Company's Investor Presentation available for download from the GBML website (www.gbml.ca).

Appendix 1: Analytical Results

Sample_ID	Program	Li_ppm	Li2O%*	Prospect
AES63003	Follow Up Sampling Dec 2022	17,410	3.75	Knockeen
AES63033	Follow Up Sampling Dec 2022	16,860	3.63	Knockeen
AES63519	Follow Up Sampling Dec 2022	13,160	2.83	Knockeen
AES63015	Follow Up Sampling Dec 2022	13,050	2.81	Knockeen
AES63029	Follow Up Sampling Dec 2022	12,920	2.78	Knockeen
AES63042	Follow Up Sampling Dec 2022	12,580	2.71	Knockeen
AES63014	Follow Up Sampling Dec 2022	12,200	2.63	Knockeen
AES63021	Follow Up Sampling Dec 2022	12,040	2.59	Knockeen
AES63018	Follow Up Sampling Dec 2022	11,980	2.58	Knockeen
AES63011	Follow Up Sampling Dec 2022	11,820	2.54	Knockeen
AES63023	Follow Up Sampling Dec 2022	11,620	2.50	Knockeen
AES63028	Follow Up Sampling Dec 2022	11,580	2.49	Knockeen
AES63041	Follow Up Sampling Dec 2022	11,570	2.49	Knockeen
AES63037	Follow Up Sampling Dec 2022	11,510	2.48	Knockeen
AES63016	Follow Up Sampling Dec 2022	11,460	2.47	Knockeen
AES63044	Follow Up Sampling Dec 2022	11,340	2.44	Knockeen
AES63012	Follow Up Sampling Dec 2022	11,180	2.41	Knockeen
AES63008	Follow Up Sampling Dec 2022	9,920	2.14	Knockeen
AES63048	Follow Up Sampling Dec 2022	9,520	2.05	Knockeen
AES63043	Follow Up Sampling Dec 2022	9,360	2.02	Knockeen
AES63027	Follow Up Sampling Dec 2022	8,820	1.90	Knockeen
AES63046	Follow Up Sampling Dec 2022	8,790	1.89	Knockeen
AES63516	Follow Up Sampling Dec 2022	8,370	1.80	Knockeen
AES63036	Follow Up Sampling Dec 2022	8,300	1.79	Knockeen
AES63007	Follow Up Sampling Dec 2022	8,090	1.74	Knockeen
AES63026	Follow Up Sampling Dec 2022	8,030	1.73	Knockeen
AES63010	Follow Up Sampling Dec 2022	7,890	1.70	Knockeen
AES63517	Follow Up Sampling Dec 2022	7,910	1.70	Knockeen
AES63512	Follow Up Sampling Dec 2022	7,840	1.69	Knockeen
AES63017	Follow Up Sampling Dec 2022	7,550	1.63	Knockeen
AES63520	Follow Up Sampling Dec 2022	7,370	1.59	Knockeen
AES63049	Follow Up Sampling Dec 2022	7,100	1.53	Knockeen
AES63515	Follow Up Sampling Dec 2022	7,040	1.52	Knockeen
AES63024	Follow Up Sampling Dec 2022	6,190	1.33	Knockeen
AES63031	Follow Up Sampling Dec 2022	6,140	1.32	Knockeen
AES63013	Follow Up Sampling Dec 2022	5,720	1.23	Knockeen
AES63019	Follow Up Sampling Dec 2022	5,420	1.17	Knockeen
AES63030	Follow Up Sampling Dec 2022	5,300	1.14	Knockeen
AES63034	Follow Up Sampling Dec 2022	4,960	1.07	Knockeen
AES63039	Follow Up Sampling Dec 2022	4,790	1.03	Knockeen
AES63022	Follow Up Sampling Dec 2022	4,710	1.01	Knockeen
AES63514	Follow Up Sampling Dec 2022	4,300	0.93	Knockeen
AES63045	Follow Up Sampling Dec 2022	4,290	0.92	Knockeen
AES63025	Follow Up Sampling Dec 2022	3,940	0.85	Knockeen
AES63032	Follow Up Sampling Dec 2022	3,550	0.76	Knockeen
AES63035	Follow Up Sampling Dec 2022	2,680	0.58	Knockeen
AES63009	Follow Up Sampling Dec 2022	1,920	0.41	Knockeen
AES63047	Follow Up Sampling Dec 2022	1,480	0.32	Knockeen
AES63038	Follow Up Sampling Dec 2022	450	0.10	Knockeen
AES63001	Follow Up Sampling Dec 2022	120	0.03	Knockeen
AES63002	Follow Up Sampling Dec 2022	120	0.03	Knockeen
AES63004	Follow Up Sampling Dec 2022	120	0.03	Knockeen
AES63005	Follow Up Sampling Dec 2022	130	0.03	Knockeen
AES63513	Follow Up Sampling Dec 2022	100	0.02	Knockeen
AES63518	Follow Up Sampling Dec 2022	80	0.02	Knockeen
AES63006	Follow Up Sampling Dec 2022	60	0.01	Knockeen

Lithium mining and exploration is well underway in South America, Nevada and Quebec, but looking for lithium in Ireland is a relatively new play. That's what could make GBML's North-West Leinster Lithium Property - and by extension its stock -  so special. In a previous interview with GBML's CEO Michael Murphy, he reiterated that the company has 16 licenses covering 65,000 hectares and that the samples in this news release were from one license. In the interview linked above, he stated that the company believes it has identified the dike from which the samples are coming. The dike starts at a depth of two meters, so the access is easy and the cost to drill will be low. Drilling will also start on this property during Q1. 

While the sample grades show up to 3.75% which is comparable to PMET, the company still needs to prove depth and length through actual drilling. PMET is seeing these types of grades over 100 meters, which is a far cry from samples. But the opportunity remains there. PMET has over a $1.1 billion market cap versus GBML at just $12 million. Is it worth it to speculate on GBML at a little over 1% of PMET's valuation? We think that it's a fair risk to reward trade-off. 

A lot of focus has been on building the EV supply chain in the Americas, that's why places like South America, Nevada and Quebec have been so hot when it comes to lithium. The Europeans are doing the same thing. So if GBML's property in Ireland does indeed confirm the existence of lithium, it will be ideally located for that. 

When analyzing GBML's near-term trading potential, we can use NILI as a recent example of a lithium stock with a similar market cap, similar news and similar speculative potential on pending drill results to try to predict where GBML is headed. We expect the stock price to move up at least a double from here and likely more in the coming weeks in a similar fashion to NILI. As we predicted in our previous piece, the stock has flatlined for a few days while the $0.10 September financing works its way into the float. But after the financing, GBML still has only 68 million shares while the $1.2 million raised in the deal likely means the company has enough cash for the drilling with little risk of further dilution outside of warrant exercises. We don't expect any additional raises in the near future, unless the stock price is significantly higher. 

Disclosure: We are long GBML.V

 

Posted by NNR at 13:23  

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