John Kaiser of Kaiser Research believes Canada is about to have a “lithium awakening.”
According to Kaiser, the market is moving past the 10-year bear market for the resources sector, which has had a particularly negative effect on juniors, and is now transitioning into what could be a potential decade-long bull market with lithium leading the charge.
Kaiser has been keeping a close eye on Canada’s James Bay region, which he sees as a burgeoning area bet due to projects like Patriot Battery Metal’s Corvette, but James Bay lithium isn’t the only area gaining attention in Canada.
The US Inflation Reduction Act has elevated Canada’s standing as a battery material manufacturer due to its proximity and trading ties with the US. Canada has announced investments totaling over $15 billion for critical mineral mining and processing, EV production, battery component manufacturing and the nation’s first gigafactory over the past 10 months, establishing the country as a major player in the EV battery supply chain.
There are several projects being developed across the country, including the North American Lithium (NAL) mine in Quebec, Canada, a joint venture between Australian lithium mining companies Sayona Mining and Piedmont Lithium.
The NAL recently produced its first batch of saleable lithium concentrate, becoming the most recent mining company in North America to begin production of lithium products. The first spodumene shipment from the mine is expected in July 2023, with four more scheduled for the first half of 2024.
Alberta is another Canadian province with a significant lithium resources that is poised to compete in the global lithium market, which is projected to triple in size by 2025.
Unlocking Huge Lithium Potential in Alberta
Alberta is another energy-friendly province that offers significant potential. Lithium developer and extraction technology pioneer E3 Lithium (TSXV:ETL) (OTXQC:EEMMF) just upgraded its Alberta-based Lithium Carbonate Equivalent (LCE) resource to 16.0 million tonnes (Mt) Measured and Indicated (M&I), including 6.6 Mt of LCE Measured and 9.4 Mt of LCE Indicated.
Natural Resources Canada states that the nation currently has an estimated 3.2 Mt of M&I lithium resources located in hard rock deposits, making E3 Lithium’s 16 Mt M&I resource the largest in Canada.
To accomplish the mineral upgrade, E3 used information from its 2022 drill program, ongoing reviews and analyses of core samples, and the development of a thorough geological model of the Bashaw District. This model offers a more complete representation of the reservoir’s properties, leading to a more precise resource estimation.
According to the company’s Preliminary Economic Assessment (PEA), its Clearwater Lithium Project has an NPV 8% of US$1.1 billion with a 32% IRR before taxes and US$820 million with a 27% IRR after taxes.
E3 Lithium has also been focused on the in field pilot of ion exchange technology in the Clearwater Project Area, which is on track to begin construction and operation in Q3 2023. The next steps at the pilot plant include securing approval from the Alberta Energy Regulator, finalizing detailed design and engineering plans, publishing KPIs regarding expected performance, and initiating on-site equipment commissioning.
Through proactive exploration of commercially available and low-risk process and design options, E3 Lithium is optimistic about reducing the project development timeline and meeting its goal of launching a commercial plant by 2026.
The company is also well-funded to achieve its goals after receiving C$3.545 million from the Government of Canada’s Critical Minerals Research, Development, and Demonstration (CMRDD) program and $4.9 million from the exercise of warrants from financings that closed in December 2020 and February 2021.
For more information about E3 Lithium Ltd (TSXV:ETL) (OTCQX:EEMMF), please visit this link or their website at e3lithium.ca.
Featured Image @ Depositphotos
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6) This document contains forward-looking information and forward-looking statements, within the meaning of applicable Canadian securities legislation, (collectively, “forward-looking statements”), which reflect management’s expectations regarding E3 Lithium Ltd.’s future growth, future business plans and opportunities, expected activities, and other statements about future events, results or performance. Wherever possible, words such as “predicts”, “projects”, “targets”, “plans”, “expects”, “does not expect”, “budget”, “scheduled”, “estimates”, “forecasts”, “anticipate” or “does not anticipate”, “believe”, “intend” and similar expressions or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative or grammatical variation thereof or other variations thereof, or comparable terminology have been used to identify forward-looking statements. These forward-looking statements include, among other things, statements relating to: (a) revenue generating potential with respect to E3 Lithium Ltd.’s industry; (b) market opportunity; (c) E3 Lithium Ltd.’s business plans and strategies; (d) services that E3 Lithium Ltd. intends to offer; (e) E3 Lithium Ltd.’s milestone projections and targets; (f) E3 Lithium Ltd.’s expectations regarding receipt of approval for regulatory applications; (g) E3 Lithium Ltd.’s intentions to expand into other jurisdictions including the timeline expectations relating to those expansion plans; and (h) E3 Lithium Ltd.’s expectations with regarding its ability to deliver shareholder value. Forward-looking statements are not a guarantee of future performance and are based upon a number of estimates and assumptions of management in light of management’s experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances, as of the date of this document including, without limitation, assumptions about: (a) the ability to raise any necessary additional capital on reasonable terms to execute E3 Lithium Ltd.’s business plan; (b) that general business and economic conditions will not change in a material adverse manner; (c) E3 Lithium Ltd.’s ability to procure equipment and operating supplies in sufficient quantities and on a timely basis; (d) E3 Lithium Ltd.’s ability to enter into contractual arrangements with additional Pharmacies; (e) the accuracy of budgeted costs and expenditures; (f) E3 Lithium Ltd.’s ability to attract and retain skilled personnel; (g) political and regulatory stability; (h) the receipt of governmental, regulatory and third-party approvals, licenses and permits on favorable terms; (i) changes in applicable legislation; (j) stability in financial and capital markets; and (k) expectations regarding the level of disruption to as a result of CV-19. Such forward-looking information involves a variety of known and unknown risks, uncertainties and other factors which may cause the actual plans, intentions, activities, results, performance or achievements of E3 Lithium Ltd. to be materially different from any future plans, intentions, activities, results, performance or achievements expressed or implied by such forward-looking statements. Such risks include, without limitation: (a) E3 Lithium Ltd.’s operations could be adversely affected by possible future government legislation, policies and controls or by changes in applicable laws and regulations; (b) public health crises such as CV-19 may adversely impact E3 Lithium Ltd.’s business; (c) the volatility of global capital markets; (d) political instability and changes to the regulations governing E3 Lithium Ltd.’s business operations (e) E3 Lithium Ltd. may be unable to implement its growth strategy; and (f) increased competition.
Except as required by law, E3 Lithium Ltd. undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future event or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. Neither does E3 Lithium Ltd. nor any of its representatives make any representation or warranty, express or implied, as to the accuracy, sufficiency or completeness of the information in this document. Neither E3 Lithium Ltd. nor any of its representatives shall have any liability whatsoever, under contract, tort, trust or otherwise, to you or any person resulting from the use of the information in this document by you or any of your representatives or for omissions from the information in this document.
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