Lithium prices are on the rebound. After prices dropped for a bit of time, the supply-demand issue is forcing lithium prices higher again. Even analysts at Citigroup just said the collapse in lithium price is likely to be over, and prices could rebound by as much as 40% by the end of the year. The firm added: “Chinese lithium carbonate prices plunged around 70 per cent in just five months to a low of $US22,000 a tonne, but have since recovered to $US28,000 a tonne in the last few weeks. Citi attributed the rebound to improved market sentiment, demand from physical traders, recovering EV sales and lower inventories in the supply chain,” as noted by Financial Review. That’s all positive news for companies such as Usha Resources Ltd. (TSXV: USHA) (OTCQB: USHAF), Albemarle Corporation (NYSE: ALB), Lithium Americas (NYSE: LAC) (TSX: LAC), American Lithium Corp. (NASDAQ: AMLI) (TSXV: LI), and Piedmont Lithium (NASDAQ: PLL).
Also, according to Stellantis CEO Carlos Tavares, there’s not enough lithium go around for the industry’s plans. “We know that we need lithium. We know that we are not producing as much as we need. We have right now 1.3 billion cars (that are) internal combustion engine powered on the planet. We need to replace that with clean mobility. That will need a lot of lithium. Not only the lithium may not be enough, but the concentration of the mining of lithium may create other geopolitical issues,” he said, as quoted by The Detroit News.
Look at Usha Resources Ltd. (TSXV: USHA) (OTCQB: USHAF), For Example
Usha Resources Ltd., a North American lithium mineral acquisition and exploration company focused on the development of drill-ready lithium and other battery and precious metal projects, is pleased to announce the resumption of drilling activities at its flagship Jackpot Lake Lithium Brine Project and the commencement of exploration at each of its six (6) lithium pegmatite projects in Ontario.
Highlights:
- Drilling is anticipated to commence on or about June 1, 2023, with a larger, more powerful drill rig that should allow each of JP22-01 and JP22-02 to be developed and sampled to 2,000 feet in an expanded borehole, something that was not possible using the previous rig. The Company is advancing these holes as part of its fully financed maiden drill program with the goal of delivering a 43-101 resource estimate. The Company presently has a working capital of approximately C$3 million inclusive of drilling costs for JP22-01 and JP22-02.
- Drilling to 2,000 feet should allow the Company to greatly expand on the 99-foot and 273‑foot intervals of the higher-porosity sand and conglomerate zones where it believes the best potential brines are present. Sampling this zone is a high priority for the project as the coarse-grained basal units are a primary focus for expansion at Albemarle’s Silver Peak Lithium Brine Mine, the only domestic supplier of lithium within the US, and at Pure Energy’s Clayton Valley Project, where they identified a large volume of brine with superior grades.
- The work will build on the recent identification of the highest grades of lithium at the project at JP22-02, where grades as high as 820 ppm were identified in shallow soils (<500 ft). With an average of 334 ppm Li in the thirty samples collected, these results confirmed that the soils at Jackpot Lake are highly enriched in lithium. The highest lithium assay results are over four times the reported historical average and compare very favourably to the reported average of 100 ppm for the Esmeralda Formation, one of the potential sources of the lithium enrichment for the brines present in Clayton Valley which hosts Albemarle’s Silver Peak Lithium Brine Mine.
- Exploration has commenced at each of the Company’s six (6) lithium pegmatite projects in Ontario. The program will involve a combination of prospecting, mapping and rock sampling, combined with soil sampling and geophysical surveying with the goal of identifying priority targets for a fall drilling program.
Jackpot Lake Exploration Update
Drilling is anticipated to commence on or about June 1, 2023, with a larger, more powerful drill rig that should allow each of JP22-01 and JP22-02 to be developed and sampled to 2,000 feet in an expanded borehole, something that was not possible using the previous rig. The Company is advancing these holes as part of its fully financed maiden drill program with the goal of delivering a 43-101 resource estimate.
Due to the increased capabilities and capacity of the larger drill rig, USHA is poised to take its exploration efforts to increased depths, expanding the scope of the project by advancing each of JP22-01 and JP22-02 to approximately 2,000 feet, thereby potentially greatly expanding on the 99-foot and 273-foot higher-porosity sand and conglomerate zones already identified in each drill hole, respectively, where it believes the best potential brines are present. Sampling these zones is a high priority for the project as the coarse-grained basal units are a primary focus for expansion at Albemarle’s Silver Peak Mine, the only domestic supplier of lithium within the US, and at Pure Energy’s Clayton Valley Project where a large volume of brine with superior grades has been identified.
The work will build on the recent identification of the highest grades of lithium at the project at JP22-02, where grades as high as 820 ppm were identified in shallow soils (<500 ft). With an average of 334 ppm Li in the thirty samples collected, these results confirmed that the soils at the Project are highly enriched in lithium. The highest lithium assay results are over four times the reported historical average and compare very favourably to the reported average of 100 ppm for the Esmeralda Formation, one of the potential sources of the lithium enrichment for the brines present in Clayton Valley which hosts Albemarle’s Silver Peak Lithium Brine Mine.
"We are thrilled to announce the resumption of drilling operations using a larger drill rig," said Deepak Varshney, CEO of Usha Resources Ltd. "This marks an important step forward in our exploration efforts and understanding what the Jackpot Lake Basin holds. By exploring to a depth of 2,000 feet, we aim to gather a more comprehensive understanding of the mineral potential within our project area, further enhancing the overall resource estimation and project feasibility of Jackpot Lake."
The delay in resuming drilling activities is primarily attributed to additional permitting requirements associated with using the larger drill rig including larger disturbance due to earthworks and expanding the diameter of the wellbore. The company would like to extend its appreciation to the relevant agencies and stakeholders for their support throughout the permitting process.
The Company also wishes to advise that it has not yet received further assay results from the first hole and that samples submitted to the analytical laboratory are still undergoing analysis.
Ontario Lithium Pegmatite Portfolio Exploration Update
The Company is also pleased to announce the initiation of exploration activities at its Ontario Lithium Pegmatite Portfolio. The projects, named White Willow, Lee Lake, Mead, Bluett, Gathering Lake, and Triangle Lake, present significant potential for lithium mineralization in the region.
The exploration program will encompass a comprehensive range of fieldwork activities, including prospecting, mapping, soil and visible outcrop sampling. This extensive approach will provide valuable data and insights into the geological characteristics and lithium potential of each project area.
The primary focus of exploration will be identifying priority targets for a fall drilling program, in particular at White Willow, which has been confirmed to host a fertile lithium-cesium-tantalum system that contains coarse-grained tantalite crystallization only found in one other locale in Ontario: the North Aubrey pegmatite at Green Technology Metals' (GT1) Seymour Lake project, where GT1 has identified a 9.9-million-tonne resource at 1.04 per cent Li2O.
"We are excited to commence exploration at our lithium pegmatite assets," stated Deepak Varshney, CEO of Usha Resources Ltd. "Each of these projects offer considerable exploration upside, as they are situated in highly prospective geological settings known for hosting significant lithium mineralization, and we look forward to providing updates as we explore and develop these promising lithium pegmatite projects in Ontario.”
Other related developments from around the markets include:
Albemarle Corporation announced its results for the first quarter ended March 31, 2023. That included net sales of $2.6 billion, an increase of 129%; Net income of $1.2 billion, or $10.51 per diluted share, an increase of 389%; Adjusted diluted EPS of $10.32, an increase of 334%; Adjusted EBITDA of $1.6 billion, an increase of 269%; Adjusting 2023 guidance to reflect current lithium market pricing; Net sales are now expected to increase approximately 35% to 55% year-over-year and adjusted EBITDA now expected to range from (5%) to 15% year-over-year. "Compared to last year, first quarter net sales more than doubled, adjusted diluted earnings per share more than quadrupled providing a robust start to the year," commented Albemarle CEO Kent Masters. "We see strong sales volume growth for the rest of the year but have modified our guidance to reflect softening lithium market pricing. We remain confident in the underlying market strength of our world-class asset base and our long-term growth strategy."
Lithium Americas announced that its Board of Directors has unanimously approved the execution of an arrangement agreement providing for the reorganization of the Company that will result in the separation of its North American and Argentine business units into two independent public companies. The Separation will establish an Argentina focused lithium company and a North America focused lithium company. Lithium Argentina will own Lithium Americas’ current interest in its Argentina lithium assets, including the 44.8% interest in Caucharí-Olaroz, the 100%-owned Pastos Grandes project and the 65% interest in the Sal de la Puna project. Lithium Americas (NewCo) will own the 100%-owned Thacker Pass lithium project in Humboldt County, Nevada, as well as the Company’s investments in Green Technology Metals Limited (ASX:GT1) and Ascend Elements, Inc.
American Lithium Corp. announced receipt of the first of three permits from Peruvian authorities for drilling near Quelcaya, 5-6 kms west of the Company’s Falchani deposit, and drilling will start immediately. Simon Clarke, CEO of American Lithium states, “This is a very significant development for the Company which validates recent supportive comments from the new government in Peru and enables us to target the discovery of new lithium mineralization on some of the best previously identified targets on the Macusani Plateau. With momentum building, the Company continues to advance its projects in Peru and Nevada with PFS work being fast-tracked on both of our large-scale lithium projects.”
Piedmont Lithium reported the results of a Definitive Feasibility Study of the Company’s proposed Tennessee Lithium project in McMinn County, Tennessee. The Study of the 30,000 metric ton per year lithium hydroxide plant featuring the innovative and waste-reducing Metso:Outotec conversion technology affirms the potential for Piedmont to develop an American-based lithium hydroxide business using spodumene concentrate from market sources, including via existing offtake agreements with Sayona Quebec and Atlantic Lithium. Piedmont President and Chief Executive Officer Keith Phillips, said he was pleased with the project economics and the positive impact of the Inflation Reduction Act, which strongly favors domestic battery and critical minerals production. “America’s pro-EV and battery manufacturing policies are providing an advantage to Piedmont at a time when many analysts are projecting lithium shortages to continue into the 2030s. Piedmont’s selection for a $141.7 million grant last year by the U.S. Department of Energy exemplifies America’s commitment to developing a domestic lithium supply chain.”
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