DESCRIPTION: Western Lithium is developing its Nevada lithium resource into potentially one of the world's largest strategic, scalable and reliable sources of battery grade lithium carbonate. The property has an NI 43-101 resource estimate for the initial stage of development and in total hosts a historically estimated 11 million tons of lithium carbonate equivalent (LCE). Western Lithium intends to start production in 2013, coinciding with the expected increase in production of lithium-ion batteries for hybrid/electric vehicles.
The information provided below is based on the most recent information we have received from analysts, newsletters and other contributors to Streetwise Reports' The Gold Report or The Energy Report. We encourage you to visit the company's web site and call the company for more specifics on this company before you decide to invest.
"Lithium's price has about tripled in the past 10 years. As Ticker Trax subscribers know, some junior producers' shares have risen 600%–1,100% since I first profiled them about 16 months ago. These include Western Lithium in Nevada and Canada Lithium in Quebec, [respectively]."
Canaccord Capital, Morning Coffee
(05/18/10)
"Time to expose yourself to lithium. Western Lithium was one of select few companies able to eke out a gain after releasing a new resource estimate for a potential Stage II development for the Kings Valley lithium project in Nevada. The primary focus remains on advancement of Stage I, which hosts 48.1 million tons indicated grading 0.27% Li (688,000 tons lithium carbonate equivalent [LCE]) and 42.3 Mt inferred grading 0.27% Li (606,000 t LCE). The Stage II resource is estimated at 95 Mt indicated grading 0.27% Li (1.69 Mt LCE) plus 47 Mt inferred grading 0.26% Li (650,000 t LCE). All resources are estimated at a 0.20% Li cut-off grade. The January 2010 preliminary economic assessment focused on Stage I with 27,700 t/a LCE production with an 18-year mine-life estimated. The new resource gives Western Lithium flexibility down the road. Also of note, a 22-hole program seeking to upgrade Stage I resources was recently completed and a summer drill program will continue this work as product and pilot scale testing proceed. Commencement of a prefeasibility study is targeted for September 2010. Canaccord Genuity Senior Mining Analyst Eric Zaunscherb believes that investors should be exposed to lithium exploration, development and production in the event that, for example, electric vehicle penetration exceeds expectations or senior producers have overstated their ability to ramp up production. His tops junior lithium picks are: Western Lithium, Canadian Lithium (CLQ) and Lithium One (LI)."
The Energy Report Interview with Victor Goncalves (05/06/10)
TER: Any lithium companies that you're following that you see as undervalued?
VG: Certainly Western Lithium. It's not the exciting story of an exploration project. It's more along the lines of they know the deposit. They're in the development stage. The beauty about being in development is you can buy it. You can put it away. You can hold it. You know they're going to get into development because they're in brine. They've got a cheap way of extracting the lithium. So this thing is going to go from the current $1.24 or so. This isn't a high-fly situation but it will go from the $1.24 now to $5 or $46 depending on the market. That's certainly something you can buy and tuck away.
View Entire Article: Victor Gonçalves: Betting on the Raw Materials
Canaccord Capital, Morning Coffee
(04/14/10)
"One of the knocks against the lithium theme has been that the three big current producers will meet all incremental end-user requirements obviating the need for new production. Myth! That myth is shattered as Australia’s Galaxy Resources (GXY) has successfully secured off-take agreements for all of its lithium carbonate production, with 13 Chinese lithium cathode producers in addition to Japan’s Mitsubishi. Construction is advancing Galaxy's Mt. Catlin hard-rock lithium mine, which, commencing 2011, will supply concentrate to an upgrade plant being constructed in Jiangsu, China. This also lays to rest the myth that only lithium brine production can be cost-effective in meeting the demand for lithium carbonate for the lithium-ion battery industry. According to the Xinhua News Agency, China is establishing a high-tech base for lithium and new energy technology in Yichun City, Jiangxi province. The economic service zone is being designed to research, manufacture and recycle lithium-ion batteries.
Research is certainly a key component of the lithium theme as Hitachi recently announced the development of a process to double the life of lithium ion batteries for industrial use to more than 10 years and researchers at MIT announced progress in technology that would dramatically increase the energy density (decrease the weight) of lithium-ion batteries using oxygen with carbon as the anode.
Although these advancements will not be commercial for many years, the heavy investments being made in e-cars and the infrastructure supporting their manufacture and operation will be used for many years—the global industry commitment has been made. That commitment will intensify as Chinese cities ban internal combustion engine use within city limits and regulators in the rest of the world catch up. Canaccord Adams Mining Analyst Eric Zaunscherb believes that investors should be exposed to lithium exploration, development and production in the event that, for example, electric vehicle penetration exceeds expectations or senior producers have overstated their ability to ramp up production. His top junior lithium picks are: Canada Lithium (CLQ), Lithium One (LI) and Western Lithium (WLC)."
The Energy Report Interview with Jon Hykawy (03/25/10)
"What you're looking for are lithium development companies that can play that role producing inexpensive battery grade lithium. That largely consists of brine and clay producers. That's the basket that we're referring to. It's companies similar to the ones we have under coverage like Western Lithium Corp., Rodinia Minerals Inc and Salares Lithium Inc."
View Entire Article: Jon Hykawy: Lithium Heats Up as Demand Increases
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