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Unloved junior lithium stock certifies robust resource estimate

 Trevor Abes Trevor Abes , The Market Online
0 Comments| March 12, 2024

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  • Nevada Sunrise Metals, an unloved junior lithium stock, has published an NI 43-101-compliant technical report on the maiden resource estimate for its Gemini project in Esmeralda County, Nevada
  • The report found no material difference in the project’s inferred resource of 7.1 million tonnes of lithium carbonate equivalent, which is currently valued at more than US$100 billion
  • Nevada Sunrise Metals is a junior mining stock with a portfolio spanning lithium, gold and copper projects in Nevada
  • Nevada Sunrise stock is down by 75 per cent year-over-year, and by 28.57 per cent since 2019

Nevada Sunrise Metals (TSXV:NEV), an unloved junior lithium stock, has published an NI 43-101-compliant technical report on the maiden resource estimate for its Gemini project in Esmeralda County, Nevada.

The report found no material difference in the inferred resource of 1.3 million tonnes of lithium, or 7.1 million tonnes of lithium carbonate equivalent (LCE), independently estimated by ABH Engineering in January 2024.

The estimate accounts for Nevada Sunrise’s work on the 7,293-acre project since 2016, which shows evidence of geological continuity and economical grades.

“Nevada Sunrise has made a major lithium discovery in the best mining jurisdiction in the world,” Warren Stanyer, president and chief executive officer of Nevada Sunrise Metals, said in a statement. “With only five holes drilled, Gemini ranks as the fourth-largest lithium deposit in the United States and we are well-positioned for a resurgence in battery metals markets.”

Gemini remains 88 per cent underexplored, according to Nevada Sunrise’s calculations, as well as open in all directions and at depth. The company is currently reviewing the technical report to formulate the project’s 2024 exploration plan.

Click here to access the full technical report.

Nevada Sunrise’s portfolio is worth more than its market capitalization

The Gemini project’s 7.1 million inferred tonnes of LCE are valued at more than US$108 billion in the ground, according to Tuesday’s price on Trading Economics. Nevada Sunrise’s only other established resource, the 18.74-per-cent-owned Kinsley Mountain gold project, offers exposure to 535,000 indicated and inferred gold ounces valued at a little more than US$1.1 billion.

When we compare these figures with Nevada Sunrise’s current market capitalization of C$5.51 million, we discover a significant price-potential disconnect, even after accounting for the comparative lack of detail of indicated and inferred resources, compared with their measured counterparts.

The stock’s value proposition is enhanced even further by granting exposure to less developed projects, such as Jackson Wash, Badlands and Coronado, which are de-risked through sampling, exploration, historical results and a management team steeped in junior and major miner experience focused on shareholder value.

Should Nevada Sunrise go on to extract even a fraction of its estimated commodities, a stock re-rating would surely follow.

Click here to learn about the mining lifecycle from exploration to production.

Nevada Sunrise Metals is a junior mining stock with a portfolio spanning lithium, gold and copper projects in Nevada.

Nevada Sunrise stock (TSXV:NEV) is unchanged, trading at C$0.05 per share as of 10:28 am ET. The stock is down by 75 per cent year-over-year, and by 28.57 per cent since 2019.

Join the discussion: Learn what other investors are saying about this unloved lithium stock on the Nevada Sunrise Metals Bullboard, and check out Stockhouse’s stock forums and message boards.

The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.



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