When something uncommon like lithium attracts the attention of the investing public, the first people will flock to are the obvious players.
I) The producers - FMC, SQM, Rockwood Holdings (SilverPeak Nevada)
Unfortunately, Rockwood's already at $20/share and does not present a significant growth potential.
The $2.4 billion dollar Obama grant has tricked down to the junior's level finally (it only took weeks!) and it materialized in this form - an expansion of capacity for current producers.
According to the Obama battery stimulus plan - properties have to be in the United States.
This leaves 3 major groups who have major presence in Nevada.
II) The Juniors - the next big lithium companies
1) International Lithium (4 for 1 spinoff from TNR Gold Corp - TNR:TSX)
With 2 large projects in Nevada - potential for a new lithium brine reserve and proximity to the only producing lithium brine project in US (Silverpeak) - this one is a no brainer.
Fish Lake Valley
I don't need much convincing after United States Geological Survey tells you there's lithium in 'em hills! Furthermore - they've even done sampling for you - for TNR and Int' Lithium to pick up a project of this magnitude tells you how early these guys got in...!!
Lithium brine has been known in Fish Lake Valley since the middle of the last century and received attention from the US Geological Survey during the 1970's during a lithium reconnaissance program to identify exploration targets similar to Clayton Valley. Fish Lake Valley is one of the two most prospective areas identified in that study. In spite of this recommendation, the valley does not appear to have received much serious attention.
Drilling and surface brine sampling was conducted by the USGS during the 1970s.
USGS Drilling at Fish Lake Valley | ||||
| Lithium in Sediments | Lithium in Water | ||
Hole Name | Samples | Li (ppm) | Samples | Li (ppb) |
FL-11 | 45 | 9 to 99 | 1 | 30 |
FL-11a | 67 | 10 to 115 | 4 | 160 to 21,000 |
FL-12 | 11 | 65 to 240 | 1 | 5,700 |
FL-12a | 27 | 30 to 409 | | 420 to 890 |
Compare those results ppb to other current producers - I think you will understand why this company has gone from $0.03 lows of 2009 to $0.37 high last week.
Mudd Lake
Twenty Placer Claims (3,200 acres) have been located within Mud Lake Basin. The claim block is situated about 10 miles southeast of Tonopah, Nevada. The basin is accessible by non-maintained roads passable by two-wheel drive vehicles. Mud Lake occupies a depression in the southern end of Ralston Valley. The basin is approximately 5 miles wide and 5 miles long and has a surface area of about 25 square miles. The playa is bounded by the Cactus Range and Monitor Hills to the east, Goldfields, Nevada to the south, Alkali Valley to the west, and Ralston Valley to the north.
Lithium One Inc. has released the first results from its phase 2 diamond drill program at the James Bay lithium project in Quebec. Highlights of the results from the first 17 holes include 10.50 metres of 2.38 per cent Li2O and 22.50 m of 1.51 per cent Li2O. All drill holes have intersected significant pegmatite, with 16 of the 17 drill holes returning intersections with grades between 1.10 and 2.38 per cent Li2O over significant widths, and many intersections lying within 50 metres of the surface. Pegmatite intercepts greater than five metres are summarized in the table.
Int'l Speculator says Western Lithium not a buy here ($0.59)
2009-07-17 15:45 ET - In the News
The International Speculator in its July 1, 2009, issue, says buy Western Lithium Canada Corp., now 65 cents, officially, "Buy under C$0.50." The newsletter said buy on Jan. 28, 2009, at 76 cents. An investment of $1,000 is worth $846. Lukewarm buys such as this one are difficult for investors to follow because of the gap between the trading price and the buy price. The result is we have a fudged buy that really means do not buy. The Speculator's writer scans the press releases and says his North American lithium speculation continues to advance its Kings Valley lithium project in Nevada. He notes the lack of press releases; talking points are few. He figures the news slump and slow market increase the odds of getting a better entry point. That means investors should hold out for 50 cents or better. Aggressive buyers can try for 40 cents, in what the writer calls a "stink bid."
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