NEW YORK, NY / ACCESSWIRE / August 17, 2017 / Lithium has been labeled the "new gasoline" by Goldman Sachs as demand for the metal continues to grow at a rapid pace. The expansion of the electric vehicle market is expected to be a key factor in the rising demand for lithium. Tesla’s Gigafactory in Nevada is estimated to produce enough lithium ion batteries to power 500,000 electric cars per year by 2020. The demand for lithium is forecasted to more than double from 209,000 tonnes in 2016 to 534,000 tonnes in 2025, according to Deutsche Bank. Additionally, Canaccord Genuity has forecasted demand for lithium carbonate equivalent (LCE) to almost triple to 767,000 tonnes by the end of 2025 from just 261,000 tonnes in 2017.
South America's "Lithium Triangle", which consists of Northwestern Argentina, Northern Chile, and Southern Bolivia, is home to over 70 percent of the world’s lithium reserves. The "Lithium Triangle" hosts the highest concentrations of lithium brines in the world. The triangle is home to a number of world-class lithium mines as the grades in the lithium triangle average approximately 500% higher than in Nevada.
Liberty One Lithium Corp. is an emerging exploration company focused on the acquisition and development of high grade lithium brine deposits. The company’s "Pocitos West" project in Argentina consists of over 39,000 acres in the middle of the renowned lithium triangle. It is located in the Pocitos Salar, Los Andes Department, Western Salta Province, Argentina. Liberty One Lithium is listed on the TSX Venture Exchange under the ticker symbol LBY. Today, the company announced positive results from a geophysical survey from its Pocitos West property in Argentina.
Liberty One Lithium has detected a probable brine horizon extending throughout the entire 29 km length of Liberty’s mining property, suggesting the potential for lithium to exist beneath much of the Company’s 160 km2 licensed area. The survey also indicates that the depth of the conductive horizon is as much as 150 meters thick in a number of target locations.
The Company, through its operating partner Millennial Lithium Corp., conducted a Vertical Electrical Soundings ("VES") survey which detects variations in subsurface conductivity. As brine is highly conductive, it was the key subsurface target. Measurements collected at 11 stations along the 29 kilometer north-south extent of the tenements, based on comparative results with local and similar rock types bearing brines, indicates the possibility of a continuous, buried conductive horizon, contiguous with the salar lake beds. Thus, the entire 160 km2 of the property appears to contain subsurface brine, which suggests the potential for lithium mineralization throughout the property.
"The entire team – in Argentina and in Canada – is thrilled with this result, which has exceeded everyone’s expectations and is the first step in confirming the possibility of extensive, buried salar sediments through much of our property. We had hoped to find ‘sweet spots’ within our tenement, but were delighted to learn the entire length of our property may contain brine; and correspondingly, lithium. The results, and proximity on-trend to known lithium brine production 25 km to the north of our holdings, suggests the potential for the continuation of lithium brine beneath much of our property." commented Liberty One Lithium’s CEO, Brad Nichol, in the press release. "We have immediately undertaken the required actions to obtain all of the necessary permits so that we can commence drilling as soon as possible. It’s also worth noting that the drill program is fully funded with cash reserves already in our treasury."
Let’s take a closer look at some other lithium stocks.
LSC Lithium Corp. (TSX-V: LSC) is an emerging lithium producer that has amassed a large portfolio of prospective lithium salars in Northern Argentina and is focused on becoming a significant player in the supply of high quality lithium product to global markets. On August 16th, the company announced that it will complete its previously announced private placement of common shares at an offering price of $1.10 or $0.87 U.S. per common share. In the aggregate, the offering is expected to consist of the issuance and sale of up to 18,181,818 common shares for gross proceeds of up to $20-million. The funds raised in the offering will allow LSC to further pursue the promising exploration results to date by the implementation of an accelerated and expanded exploration program for 2017.
Lithium X Energy Corp. (LIX.V) (OTCQX: LACDF) is a lithium exploration and development company with a goal of becoming a low-cost supplier for the burgeoning lithium battery industry. On July 11th, the company announced that further to its news release of June 29th, 2017, the Company has closed the definitive agreement with Aberdeen International Inc. ("Aberdeen") for the purchase of Aberdeen's remaining 50% interest in Potasio y Litio de Argentina S.A. ("PLASA") which controls 100% of the Sal de los Angeles Project (the "Acquisition"). The project consists of 8,154 hectares covering 95% of Salar de Diablillos, and has an NI 43-101 mineral resource estimate of 1.037 million tonnes of lithium carbonate equivalent in the indicated category and 1.007 million tonnes of lithium carbonate equivalent in the inferred category.
Lithium Americas Corp. (LAC.TO) (OTCQX: LACDF) is developing the Cauchari-Olaroz lithium project, located in Jujuy, Argentina, through its 50% interest in Minera Exar. On July 17th, the company announced that it has closed the investment agreement with BCP Innovation Pte Ltd., a wholly-owned subsidiary of Bangchak Corporation Public Company Ltd. Pursuant to the Investment Agreement, Bangchak has agreed to provide Lithium Americas with an aggregate of US$113 million in financing primarily to fund a portion of the Company’s share of construction costs for the Cauchari-Olaroz lithium project in Jujuy Province, Argentina. Shares of Lithium Americas have gained approximately 30 percent year-to-date.
Nemaska Lithium Inc. (NMX.TO) (OTCQX: NMKEF) intends to become a lithium hydroxide supplier and lithium carbonate supplier to the emerging lithium battery market that is largely driven by electric vehicles. On August 01st, the company released diamond drilling results from the 2017 drill program at its 100-per-cent-owned Whabouchi lithium mine project. The 4,361-metre drill program combines definition drilling to a depth of 50 metres in the five-year starter pit between sections 200E and 700E as well as expansion drilling in the Doris zone located immediately to the southwest of the main Whabouchi deposit.
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