Lithium Stocks Soar on Plans for EV-only Future

 


Lithium Stocks Soar on Plans for EV-only Future

The media has been having a field day with this one. China’s September announcement to ban gas powered vehicles has sent the lithium market on a tear and sent shockwaves through the auto industry.  Just in the weeks following, shares in Tesla (NASDAQ:TSLA), Sociedad Quimica y Minera de Chile (NYSE:SQM), or SQM, and Albemarle (NYSE:ALB) jumped 67.49%, 92.50%, and 117.1%.

And China certainly isn’t alone in their plans…

This news comes on the heels of at least 8 other countries who have made similar announcements, including the United Kingdom, Germany, and France.  The writing is on the wall – the largest auto markets on the globe intend to make oil obsolete.  Market response to this shift has been epic; lithium stocks are skyrocketing more aggressively than ANY other energy investment, with no signs of slowing down.

Our next feature pick for this sector is no exception.  At a time when demand is poised to completely overwhelm current supplies, Standard Lithium (OTC: STLHF / TSXV: SLL / XFRA: S5L.F) has quietly been locking up some of the most sought-after lithium resources in the United States.  Already up more than 50% in a handful of months, STLHF could easily dish out MULTI-BAGGER gains in the near term.

Let me explain why…

The mining legend behind 1,995%, 1,333%, and more huge winners just loaded up on STLHF.

It’s not every day that a precious metals guru with an impenetrable track record endorses an early-stage company like Standard Lithium.

But Bob Cross has made a career of identifying projects with huge blue-sky potential, accumulating stock at rock bottom prices, and then growing these companies into major players in their respective industries.  This tried and true strategy has made him one of the most successful mining developers of the 21st century.  Take a look:

  • Bob Cross was co-founder and non-executive chairman of Bankers Petroleum (TSX: BNK).  It went from 43 cents to a high of $9.64. A 1,995% GAIN.
  • He is a co-founder and non-executive chairman of B2Gold (TSX: BTO). It went from 30 cents to a high of $4.30. A 1,333% GAIN.
  • He acquired control of Northern Orion Resources in 2003, became Non Executive Chairman, the market cap grew from under $20M to $1.4B when it was sold to Yamana in 2007
  • He was also a director of Athabasca Potash until it was bought out for $8.35 a share by BHP Billiton.

And now, he’s taken a major position in STLHF.  After learning of the company’s data driven approach of utilizing site specific modern processing technologies on domestic US projects, the natural resource financier just couldn’t help himself!

HUNDREDS of investment opportunities come across Bob Cross’ desk every day.  So for STLHF to attract his investment dollars, something major needed to catch his eye.

Let’s run down EXACTLY what Bob Cross bought into.

First and foremost, STLHF’s team of  world class processing engineer’s are applying the most advanced and tested lithium extraction technologies at the project level. For STLHF the project drives the processing technology not the other way around, this is Not a Black Box.

You see, the conventional lithium extraction method today involves pumping salt-rich waters to the surface into a series of evaporation ponds.  Then heat from the sun slowly evaporates the water – leaving higher and higher concentrations of lithium in the brine.

Unfortunately, there needs to be hundreds, or even thousands of acres of evaporation ponds if you want any meaningful production.  What’s worse, ponds can take anywhere from a few months to almost two years before they reach an optimum lithium concentration.

Producers are often left twiddling their thumbs as they wait.

The cutting-edge selective extraction processes advocated by Standard Lithium could eliminate these ponds altogether. The key processing step involves passing the lithium-rich brine through a powerful and highly selective process, which removes only the lithium and leaves behind other unwanted materials.  Then the lithium-rich solution is scrubbed and concentrated and can be further processed into high purity, battery grade materials.   The selective extraction materials can then be recycled and used again, helping to reduce costs and minimising the overall environmental footprint.

Now here’s the kicker.

If they can demonstrate a workable system, not only will it mean significant cost savings for the company, but STLHF will also be able to extract and produce battery grade lithium materials from brine in just 48 hours.

That’s right.  What normally takes 12 – 18 months to accomplish could be completed in just TWO days!  No more twiddling thumbs.

More importantly, projects that looked uneconomical before could potentially be profitable today.

Why STLHF’s properties make it a blockbuster investment

STLHF has stated unequivocally that their goals are ambitious – and that’s an understatement, to say the least.

If everything goes according to plan, STLHF hopes to be a major domestic supplier of battery-grade lithium for the rapidly growing Electric Vehicle space.  Tesla’s (NYSE:TSLA) record-breaking Gigafactory is located in Sparks, Nevada, only 8 hours away from Bristol Lake, California.  Of course, with the much-hyped Tesla Model 3 slated to begin delivery in mid-2018 to 2019, they’ll need to develop their projects quickly in order to accomplish this lofty goal.

One of their secret weapons is the Bristol Lake project in California which covers approximately 19,000 acres of placer mineral claims and private property and lies adjacent and contiguous to STLHF’s recently acquired 4,000+ acre Mojave Lithium Project.

Leased in partnership with National Chloride Corporation of America, this turn-key operation already has excellent mining infrastructure in place and is poised to ramp up production quickly.

This deal could potentially have fast track Standard Lithium to become the second lithium brine producer in North America.

Bristol Lake checked all the right boxes:

  • an active brine operation
  • significant existing infrastructure
  • politically secure jurisdiction with a favorable attitude towards mining
  • known historic levels of lithium.

Spanning roughly 25,000 acres and sitting over an aquifer that reaches up to 1.2 kilometers in thickness, the Bristol Lake area has been mined for the last 100 years by multiple operators to produce concentrated chloride products for various industrial applications. The area has access to the electric grid, is accessible by paved roads, and sits just a few hours east of Los Angeles.

Historical USGS drilling from the property boasted anomalous lithium concentrations of  >100 mg/L and recent gravity surveys shows deep and extensive reserves as well.  Furthermore, the partnership with National Chloride will simplify a lot of the permitting challenges.  In fact, STLHF also has the option to lease access to approximately 3,000+ acres of additional land held privately by National Chloride and its various affiliates.

It has been long known that the underlying aquifers at Bristol Lake contain lithium. The United States Geological Survey (USGS) conducted historic borehole drilling and produced brine samples assaying  greater than 100 mg/L lithium across entire intervals reaching 500 feet.

Standard Lithium hasn’t wasted any time getting to work either. Since inking the deal in May the company has already completed two detailed geophysical surveys, which CONFIRMED the extensive nature of the basin and its highly conductive brine resources. The report produced by Hasbrouck Geophysics Inc. provided the following highlights:

  • Extensive low resistivity values across almost all of Standard Lithium’s claim package, suggesting that lithium brines are present beneath almost all of Standard’s claims;
  • Thick sequences of extremely low resistivity values (less than 1 ohm-metre), likely correlating with high concentration brines; and,
  • An increase in conductivity to the south and east, suggesting that brines extend fully across Standard Lithium’s claim package in parts of the basin which are currently not used for brine harvesting activities.

Drawing on this data, they have already moved forward on a resource definition drill program to to establish the lithium grade, depth and lateral extent of the subsurface brine across Standard’s extensive landholdings. Two drill rigs have commenced work on site with a team of senior geologists and hydrogeologists supervising.Once this data has been fully compiled, Standard Lithium will determine suitable locations for exploratory drilling, and retain drilling contractors to allow for rigs to mobilize before the end of Q3.

In other words, Bristol Lake may be a near term project that has the potential to generate significant cash flows as the company accelerates its growth plans.  Early investors who buy in STLHF now are basically getting a bargain because these potential cash flows haven’t been priced in yet.

It doesn’t stop there.  Just last month, STLHF announced an LOI with a NYSE listed company for lithium exploration and productions rights to another location in the historic lithium-rich Smackover Formation.  I imagine we should be hearing more about this property very soon.

I can’t spell it out any clearer: all the signs point to an imminent rise in the stock price of STLHF.

  1. Lithium demand is set to rise by 16 percent per year over the course of the next decade, quadrupling by 2025 to 750,000 tons, according to Morningstar.
  2. Mining legend Bob Cross is already a major shareholder and advisor.
  3. Partnership with National Chloride could fast track Standard Lithium to become a lithium producer in North America.
  4. STLHF is developing ground-breaking technology to extract lithium from brine in just 48 hours.  This could revolutionize the extraction process and result in HUGE profits for the company.
  5. STLHF’s projects are some of the richest lithium properties in the country.  They’re aiming to ramp up production to supply Tesla’s lithium-ion batteries being built in their Gigafactory.

The only way to make sure you don’t miss out on this incredible opportunity is to take a position NOW – while the stock is still trading below $2.

Once investors catch wind of this undiscovered gem, it’ll ROCKET higher – leaving everyone else in the dust.

Mining guru Bob Cross is already a major shareholder in the company.  He knows that with the lithium market about to explode, with ground-breaking technology on the horizon, and with the company aiming to ramp up production, it could be only a matter of time before STLHF generates massive returns for its investors.

Symbol        Alert        High        Gain

 

  VBIO          $0.67       $4.10      500%

  IMLFF        $0.11       $0.57      400%

  CMXC        $0.25       $0.45      80%

  REPCF       $0.54       $0.79      48%

 

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