Jeremy Poirier: Lithium and Gold
Jeremy Poirier: Lithium and Gold by Rory – The Daily Coin
The reality of electric vehicles (EV) gets a clearer on a daily basis. With California now proposing legislation to eliminate fossil fuel vehicles and Great Britain proposing legislation that will ban fossil fuel vehicles by 2040 it seems the writing is on the wall. There are a number of European nation states that have passed or are currently debating moving to all electric vehicles within the next fifteen years. This means a lot of batteries to operate these vehicles.
The worlds largest auto market, China, has already passed legislation advancing EV’s and eliminating fossil fuel vehicles completely reshaping the global auto industry.
We have been reporting on a handful of lithium mining companies but they pale in comparison to Bearing Lithium. This company is well advanced in their development and are on track to be the 2nd largest lithium mine in South America, making them the second largest in the world.
Some of the basics regarding Bearing Lithium’s Marincunga Project located in Chile.
- Bearing Lithium (TSXV:BRZ) acquired Li3 Energy (OTCQB:LIEG) in September 2017 for consideration of 16M shares.
- Li3 Energy’s primary asset is a 17.7% interest in the Maricunga lithium project in Chile, which is free-carried through the delivery of a definitive feasibility study (DFS) by the projects’ partner.
- The Maricunga Project is the highest grade, undeveloped lithium salar in the Americas. It is second in grade only to the Salar de Atacama, which accounts for 100% of Chile’s lithium production and about 40% of global production.
- Over US$30 million has been invested in the project to date which has generated a NI 43-101 Measured Resource of 1.7 Mt LCE and Inferred Resource if 0.4 Mt at an average grade of 1,160 mg/L Li.
- The project is comprised of a number of tenements totaling 4,463 hectares, some of which are grandfathered under a previous mining code which allows for the immediate exploitation of lithium.
- POSCO (NYSE:PKX), one of the world’s largest steel manufacturers, invested US$18M into Li3. Developed proprietary lithium extraction technology which recovered over 80% of lithium from brine in under 24 hours with a fraction of the environmental footprint.
- A significant exploration and development program is underway to de-risk the project, with US$22 million to be expended by property partner to culminate in the delivery of a Definitive Feasibility Study (DFS) in 2018. Near-term catalysts include results from process test work and a Pre-Feasibility Study (PFS) in Q4/17.
I sat down the Bearing Lithium‘s President and CEO, Jeremy Poireir to discuss the state of the market and how Bearing Lithium is positioning itself for the coming changes in the motor vehicle market.
With a projected global change of approximately 7%, over the next decade and a half, of all vehicles to EV, it seems it may be time to pay attention to what is happening with lithium batteries. This is to say nothing of the use of lithium in wind turbines and other “green” energies.
The Daily Coin, The Daily Coin employee(s) do not hold any stock of Bearing Lithium and have no plans of changing our position within the next 30 days. The Daily Coin likes physical gold and physical silver.