For metals & mining investors The New Green Revolution offers an abundance of opportunity in investing in companies that are at the forefront of exploring and developing minerals that will drive this revolution for generations to come. This is especially true when it comes to powering the massive increase in demand for Electric Vehicle and smartphone battery technology
There is no doubt the global demand for Lithium (Li) will continue to increase exponentially. Designated a
strategic and critical mineral by the United States Geological Survey (USGS), Li
Lithium Chile Inc. (LITH) (
TSX-V.LITH,
OTC: LTMCF,
Forum) is engaged in the acquisition and development of mineral properties in Chile. Its projects include Salar De Coipasa, Salar De Laguna Blanca, Salar De Los Morros, Salar De Helados, among others. The company currently owns 13 projects on Lithium-rich salars in Chile, making it the largest landholder of lithium salars outside the Chilean government and the Sociedad Química y Minera de Chile (SQM).
The company has assembled one of the best, and undoubtedly one of the biggest, exploration packages of perspective lithium properties in all of Chile. Lithium Chile’s portfolio includes 71,900 hectares of Chilean salars staked for approximately $3 per hectare. The top priority projects have high-grade lithium and positive chemistry results from sampling. LITH boasts a management team with proven leadership in the lithium space, as well as an experienced, Chilean-based technical team. The lithium-ion battery sector will continue to see sustained, high-growth metrics which is forecast to continue long term.
Stockhouse Editorial met up with company President & CEO Steve Cochrane to discuss the latest company news and updates, exploring for lithium in the driest pace on earth – Chile’s Atacama Desert – and all things Lithium Chile Inc.
SH: To start off with, Steve, can you tell us a little bit about yourself and the history of the company?
SC: I started my carrier in the investment industry at Pitfield McKay Ross in 1981 in Calgary. I spent 36 years in the investment business specializing in financing and taking public junior companies in the resource, healthcare and technology industries. Lithium Chile was one of those companies I took public in 2013 on the TSX Venture Exchange.
While the company’s exploration portfolio initially consisted of copper gold prospects, all in Chile, management and the board had the foresight to put together an outstanding portfolio of prospective lithium properties beginning in early 2016. I was tasked with finding a CEO for the company in early 2017 and I was so impressed with the company the properties and Chile in particular I offered up my services as the new CEO and gratefully assumed the role in August of 2017.
SH: Can you update our investor audience and your LITH shareholders on all the new company developments, especially in the wake of COVID-19?
SC: There is no question Covid has pushed our plans back but I am sure that’s the case for a lot of companies. While Chile still has challenges around the virus the have vaccinated a larger percentage of their population then we have and there is light at the end of the tunnel. In spite of the restrictions in place in Chile we have managed too advance exploration programs on two of our more promising prospects. We have completed two extensive sampling programs on our Laguna Blanca Lithium/Cesium prospect and complete 3 exploration programs on our Carmona battery metals project.
SH: You just announce the completion of a definitive agreement and Joint Pilot Project with Summit Nanotech Corporation that will launch their proprietary lithium extraction technology at one of Lithium Chile’s exploration well sites. Can you expand on this initiative for our investor audience?
SC: We truly believe the future for lithium brine production will be through the use of a sustainable, environmentally friendly, economically viable extraction technology. While there are a number of companies working on this process, we feel the Summit Nanotech technology approach is the answer to this challenge and the solution everyone has been looking for. We are pleased to have our relationship with Summit and look forward to collaboratively proving their technology works for the benefit of all Chileans.
SH: You’ve recently announced results from your Laguna Blanca Lithium and Cesium Sampling Program. This may be news to many investors. Can you unpack the benefits of it?
SC: Our recent Laguna Blanca sampling program provided us with a pleasant surprise. Not only did we see good lithium grades in the sediment samples assayed by ALS ranging from 1035 mg/l to 1230 mg/l but we also encountered high Cesium grades as well. Over a 4 sq.km. grid sample program we encountered Cesium values ranging from 75 gms per ton to 690 gms per ton. Cesium prices have risen from $39.00 gm in 2018 to recently as high as $130.00 gm. This jump has been a result of increased demand for Cesium due to it’s use in 5G mobile networks.
SH: The company is exploring 71,900 hectares of lithium brines in Chile. That’s a lot of geography and 13 projects total. From an investment perspective, how does Lithium Chile manage, expand, and profit from operations of this size and scale?
SC: Simply put just our land portfolio of lithium projects in Chile alone underpins our share valuation. During the last lithium boom in 2017 lithium prospects, were selling for $890 US per hectare. Given our current land position of highly prospective lithium properties that’s an equivalent share value of .55 Canadian. Having sampled all the properties for lithium we are currently focused on advancing those that showed the best results.
SH: For company shareholders and potential investors, what kind of future development and progress can we expect at your four main projects – Salar de Laguna Blanca, Salar de Atacama, Salar de Coipasa, and Salar de Helados?
SC: We are waiting for the current restrictions around the Covid 19 outbreak to be lifted so we can get underway with our drilling program for Coipasa. This property with its sample grade in excess of 1400 mg/l lithium plus its size, 174 sq.kms, make this one of our highest priority projects. In the meantime, we are doing advanced exploration work on Laguna Blanca to understand further the Cesium potential of that property.
SH: Can you discuss the long-term strategy for the company moving into 2021 and beyond, and what retail and institutional investors should be looking out for?
SC: Lithium Chile is currently cashed up to the tune of $5.6 million in the bank so we have the financial flexibity to pursue our goals for 2021 and into 2022. We have plans and the capital for a 3-to-4-hole exploration drill program on each of our Coipasa, Laguna Blanca and Salar de Los Morros properties. We also intend and have the capital to advance our exploration program on our Carmona Battery Metals prospect. Initial exploration work has shown good copper gold and silver grades on samples assayed to date along with indications of Cobalt. We have had interest expressed in developing this project from outside parties but we want to understand the potential better before we move in that direction. Lastly with a strong treasury and share price we are actively on the look out for joint ventures or acquisitions that would be accretive for our shareholders.
SH: Can you tell our audience a little bit about your corporate management team at Lithium Chile along with the experience and innovative ideas they bring to this metals & mining space?
SC: One of the big keys to our success to date and going forward is the strong team of professionals we have on the ground in Chile. Our VP of Exploration Terry Walker’s long experience and knowledge of Chile’s mineral resources has allowed us to put together the exciting mineral properties we have in our portfolio. Our successful Community Relations team led by, Rodrigo Vasquez, has enabled us to negotiate surface access for 3 different lithium exploration programs with 3 different Indigenous Communities on 3 different properties. This is a remarkable feat considering the difficulties some of our competitors have had. Lastly, we have a world class lithium brine expert in Jose de Castro Alem. Jose’s 25 years of experience working with South American brine projects will be invaluable for us going forward.
For regular updates, visit
lithiumchile.ca.
FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.