Lithium Junior Miner News For The Month Of April 2018

Summary

• Lithium spot and contract price news - Spot prices slightly down, while 2018 contract prices are up.
• Lithium market news - Chinese lithium acquisition spree shifts from Chile to Argentina.
• Junior lithium miner company news - Nemaska Lithium has a brilliant month.
• Core Exploration is added to the group as they look to be a potential 2020 producer.

Welcome to the April 2018 edition of the "junior" lithium miner news. I have categorized those lithium miners that won't likely be in production much before 2020 as the juniors, rather than market cap as that fluctuates too much.

April saw a slight fall in the lithium spot price, some recovery in the lithium junior stock prices, and steady progress by the lithium junior miners.

Lithium market and prices summary

During April, 99.5% lithium carbonate China spot prices were down 4.11%. 2018 Global Lithium Carbonate Equivalent [LCE] contract prices are up about 20% in the range of USD 13-16,000/tonne.

Lithium China Spot prices - Over USD 20,000/tonne

Source: Lithium Americas January 2018 company presentation

For a summary of the latest lithium market news and the "major" lithium company's news, investors can read my "Lithium Miners News For The Month Of April 2018" article.

On March 28 The Wall St Journal reported, "Saudis, SoftBank announce massive solar power project. Development to start this year with $1 billion investment from Saudi-SoftBank Vision Fund." Later in the article they mention that they will use "batteries" to store the energy.

On April 23 PR Newswire reported:

Chinese lithium acquisition spree shifts from Chile to Argentina. While one recent major Chinese lithium acquisition was being aggressively hindered in Chile, another was being approved in neighboring Argentina-an all-cash deal worth $265 million. Recent efforts by Chilean government agency Corfo to block Chinese firm Tianqi Lithium from acquiring a 32% stake in lithium giant Sociedad Quimica y Minera de Chile seem to be sending an alarming message to foreign firms who originally sought investment in Chile, and are now perhaps changing their target region to neighboring Argentina."

Junior lithium miners company news

Bacanora Lithium [TSXV:BCN] [AIM:BCN] [GR:2F9] (OTC:BCRMF) - Formerly Bacanora Minerals

On April 4 Bacanora announced: "Corporate update and Zinnwald Lithium Project review. The feasibility study for the Zinnwald Lithium Project in Germany continues on schedule." Note: Bacanora owns 50% of the Zinnwald project.

On April 6 Bacanora announced: "Sonora Project update. This update is in line with the Company's objective to commence the construction of a 35,000 tpa lithium carbonate operation at Sonora in H1 2018, targeting first production in Q1 2020. A recently completed Feasibility Study ('FS') demonstrated Sonora's potential to become a leading supplier of high value lithium products to fast-growing industries, such as electric vehicles and energy storage. The FS demonstrated strong economics of US$1.25billion NPV; 26.1% IRR; and life of mine gross operating costs of US$3,910/t Li2CO3, which are comparable to those of the low cost brine producers of South America."

Investors can view the company's latest presentation here.

Upcoming catalysts include:

• 2020 - Plan to commence production ramping to 17,500 tpa, and in stage two 35,000 tpa.

Nemaska Lithium [TSX:NMX] [GR:NOT] (OTCQX:NMKEF)

On April 6 Nemaska announced, "SoftBank Group to make strategic investment in Nemaska Lithium. The "Investment Agreement") with SoftBank Group Corp. ("SoftBank") for a private placement (the "Placement") of common share subscription receipts (the "Receipts") at a price of CAD 1.12 per Receipt for aggregate gross proceeds of up to CAD 99,075,000."

On April 12 Nemaska announced, "Nemaska Lithium concludes a USD 150M streaming agreement with Orion."

On April 20 Nemaska announced, "Nemaska Lithium launches a USD 300-350M bond offering."

On April 27 Nemaska announced, "Nemaska Lithium and Northvolt announce Signature of Agreement in Principle for supply of lithium hydroxide."

A very productive month of results for Nemaska.

You can read more on my article on Nemaska Lithium here, and the latest company presentation here.

Upcoming catalysts include:

• 2018 - Off-take agreements and project financing announcements.
• 2020 - Possible production start.

Critical Elements [TSXV:CRE] [GR:F12] (OTCQX:CRECF)

On April 10 Critical Elements announced, "Critical Elements announces $5.0 million bought deal private placement financing." The deal was placed at CAD 1.00 per share.

"Investors can read my article "Critical Elements - A Lithium Miner With An Exceptional Buying Opportunity," written when the stock was at CAD 0.56.

Upcoming catalysts include:

• H1, 2018 - Rose stage 2 Feasibility Study due.
• 2018 - Project financing announcements, potential resource upgrade.
• 2020/21 - Possible producer.

Sayona Mining [ASX:SYA] (OTC:DMNXF)

No news for the month.

Investors can also read a recent Independent Investment Research report here, with a price target of A$0.102. Investors can read the company presentation here, and my recent interview "Sayona Mining CEO Corey Nolan Talks With Matt Bohlsen Of Trend Investing."

Upcoming catalysts include:

• 2018 - Drill results for Authier Lithium Project.
• Q2 2018 - DFS to be released for Authier.
• 2020 - Production could begin.

Argosy Minerals [ASX:AGY][GR:AM1]

Argosy has an interest in the Rincon Lithium Project in Argentina, targeting a fast-track development strategy.

On April 27 Argosy Minerals released their "Quarterly Activities Report - March 2018." Highlights include:

• "Rincon Stage 1 industrial scale pilot plant operational Argosy now at 77.5% of Rincon JV ownership Fast-track development of Rincon Lithium Project continues Stage 2 development works continue to progress Initial~10Ha.
• Stage 2 evaporation ponds filled with lithium brine – solar evaporation and lithium brine concentration in full effect.
• Construction commenced for remaining ~24Ha of Stage 2 lithium brine evaporation ponds.
• Exploration drilling works and data being prepared for JORC Resource estimate by independent hydrogeological consultant.
• Two production wells completed, test-works conducted, and continued lithium brine pumping into Stage 2 ponds.
• Continued engagement with Asian and Middle East LCE end-users for potential off-take and Stage 3 investment.
• Arrangements made with major international customers to be provided samples of battery grade LCE for quality specification."

Investors can view the company's latest investor presentation here.

AIS Resources [TSXV:AIS] (OTCQB:AISSF)

AIS Resources is a Canadian junior lithium explorer and developer fast tracking towards production at their 100% optioned to own flagship Guayatayoc Laguna in Argentina. The company also has other Argentina lithium projects at Vilama salar and Quirón Salar.

On April 20 AIS Resources announced, "A.I.S. Resources prepares for drilling." AIS "has engaged Hidrotec SRL of Salta, Argentina to complete up to eight diamond drill holes for a total of 2,300 meters across all four tenements at its Chiron project in the Pocitos Salar. AIS plans to drill eight holes, to various depths between 300 and 400 meters."

On April 27 AIS Resources announced, "A.I.S. Resources adds second drilling rig at Chiron."

Chiron project in the Pocitos Salar

Source

Investors can read the company presentation here, my article on Trend Investing "AIS Resources is racing towards lithium production in Northern Argentina", or my Chief Operating Officer Phillip Thomas interview here.

Upcoming catalysts include:

• H1 2018 - Drill results from Guayatayoc and Chiron.
• H2 2018 - M&I Resource announcement for Guayatayoc and/or Chiron
• Late 2018 - FS for Guayatayoc and/or Chiron.
• 2020 - Plan to commence lithium production, initially 8,000 tpa, later 16,000 tpa plus.

Kidman Resources [ASX:KDR] [GR:6KR] (OTCPK:KDDRF)

2017 news has included the 50/50 JV with SQM for the Mt Holland Lithium project, and a proposal for a refinery located in WA.

On April 26 Kidman Resources announced, "March 2018 Quarterly Activities Report." Highlights include:

• "54% increase in Earl Grey combined Mineral Resource Estimate;

  confirms Earl Grey as one of the world’s most significant hard rock lithium deposits.

• JV activity progressing rapidly; proposed refinery site to be announced in June quarter.

• High level of interest from various parties seeking lithium hydroxide offtake.

• Senior management strengthened with the appointment of a new CFO and highly experienced CEO and Project Director appointed to the JV."

You can view the latest company presentation here, and a Hartley's broker report with an AUD 1.71 price target here.

Upcoming catalysts include:

• 2018 - PFS release expected.
• 2021 - Commence lithium production.

European Metals Holdings [ASX:EMH] [AIM:EMH] [GR:E861] (OTC:ERPNF)

On April 11 European Metals announced: "Appointment of COO. European Metals is very pleased to announce the appointment of Neil Meadows as Chief Operating Officer."

Investors can view the company's September presentation here.

Upcoming catalysts include:

• 2018 - Off-take discussions.
• Late 2018 - DFS to be released.
• Mid-2019 - Bankable Feasibility Study to be released.
• Late 2021 - Production to commence.

Investors can read my June 2017 article on European Metals Holdings here, or view the company's September presentation here.

Neo Lithium [TSXV:NLC] (OTC:NTTHF)

No news for the month.

Investors can read my article "Neo Lithium Corp. Has Great Potential," back when the stock was at CAD 1.09.

Investors can read the latest company presentation here, and an excellent video here. My CEO interview is available on Trend Investing here.

Upcoming catalysts include:

• Q2 2018 - Updated resource estimate.
• Q4, 2018 - Definitive Feasibility Study. Project financing discussions.
• 2019 - Construction planned to commence.
• 2021 - Lithium production to begin.

Birimian Ltd [ASX:BGS] (OTC:EEYMF)

Birimian’s projects include the Goulamina Lithium Project, the advanced Massigui Gold Project, and the Dankassa Gold Project, all situated in southern Mali.

On April 30 Birimian announced "Quarterly Activities Report." Highlights include:

• "A highly successful six-month resource extension and definition

  drilling program at Goulamina discovers five new pegmatites and substantially increases resource base.

• Goulamina total Indicated and Inferred Mineral Resource doubled – revised Mineral Resource is 65Mt @ 1.43% Li2O for 931Kt of Li2O. Increase of 32.1Mt @1.50% compared to the previous Mineral Resource. Contained Li2O up from 451Kt to 931Kt. New material added generally higher grade, leading to increase in the average grade of the Mineral Resource.

• Revised Mineral Resource is from Main, West and Sangar deposits only. Yando, Danaya and Sabali pegmatites are yet to be included. There is a strong likelihood of further significant increases in the Mineral Resource for Goulamina.

• A further updated Mineral Resource estimate will be undertaken following completion of the current exploration program underway at Yando and Danaya.

• Results exceed Birimian’s expectations and validate the strategy to aggressively explore Goulamina. Results bode well for the maiden Ore Reserve and suggest improved project economics in the upcoming revised PFS."

You can view the latest company presentation here.

Lithium Power International [ASX:LPI] (OTC:LTHHF)

On April 24 LPI announced, "Quarterly Activities Report." Highlights include:

• "Lithium carbonate pilot plant results produced from Salar de Maricunga brine achieved a purity level of 99.9% from experienced process company Veolia. The samples had significantly fewer impurities than the targeted impurity levels. These results are in addition to the previous

  announcement of 19 February 2018, where initial lithium carbonate pilot plant results had a purity of 99.4%, by recognised chemical company GEA.

• The production results exceed battery grade lithium carbonate requirements and demonstrate a viable, cost-effective process. Work to optimise this process, as an input to the project’s definitive feasibility study [DFS], is continuing.

• The Maricunga JV received a Chilean Nuclear Energy Commission (CCHEN) permit for the production and export of lithium from the grandfathered, old mining code properties of Cocina, San Francisco, Salamina and Despreciada. It is important to understand that this permit covers part of the resource, applying to the old mining code properties only.

• The permit lasts 30 years and allows the extraction of 472,000 tonnes of lithium carbonate equivalent [LCE] to the base of the current drilling to 200 m. The CCHEN permit can be increased to approve an additional quota based on future deeper drilling if additional resources are identified.

• A special lithium operations permit (CEOL) is in the application process for the exploitation of lithium from the Litio properties, which are covered under the new mining code.

• LPI brought forward its final three Maricunga JV earn-in payments of US$7.53m, completing its earn in for 50% of the project. Funds invested by the Company now total US$27.2m.

• The JV is finalising the Environmental Impact Assessment due for submission in 2Q 2018. Infrastructure and engineering studies are continuing for the DFS due in 4Q 2018."

Investors can read my article "Lithium Power International Has A Very High Grade And Expanding Lithium Project In Chile," as well as my CEO interview on Trend Investing here.

Upcoming catalysts:

• Q4 2018 - DFS to be released.

Advantage Lithium (OTCQB:AVLIF) [TSXV:AAL]

On April 9 Advantage Lithium announced, "Cauchari JV drilling and development update continued positive NW sector results - Hole CAU18. The nine CAU18 brine analyses averaged 476 mg/l Lithium and 3,727 mg/l Potassium from 165-320 m depth. Average Mg/Li ratio of 2.5:1, very similar to the nearby hole CAU07 (2.3:1) and the producing Olaroz brine project resource (2.4:1) - very positive for utilisation of conventional or other brine processes."

On April 17 Advantage Lithium announced, "Cauchari JV drilling update excellent NW sector results averaging 571 mg/l Li - Hole CAU17."

Millennial Lithium Corp [TSXV:ML] (OTCQB:MLNLF) (OTCQX:MLNLF)

Millennial has tenements at the Pastos Grande Lithium project and the Cauchari East lithium project.

On April 18 Millennial Lithium announced, "Millennial Lithium Corp. receives Environmental Permit to explore REMSA area and advance the Pastos Grandes Lithium Brine Project."

You can view the company's latest investor presentation here.

Upcoming catalysts:

• H1 2018 - PEA to be released.

LSC Lithium [TSXV:LSC] (OTC:LSSCF)/Dajin Resources [TSXV:DJI] (OTCPK:DJIFF)

LSC Lithium is focused on six development stage lithium projects: Pozuelos, Pastos Grandes, Salinas Grandes (Salta), Salinas Grandes (Jujuy), Rio Grande and Jama. LSC Lithium Corporation (51%) has partnered with Dajin Resources (49%) for some tenements primarily located in the Salinas Grandes/Guayatayoc salt lakes basins, Argentina.

On April 2 LSC Lithium announced, "LSC Lithium files Technical Report for Rio Grande with NI-43-101 Inferred Mineral Resource 2,190,000 tonnes LCE."

On April 24 LSC Lithium announced, "LSC Lithium announces start of advanced development on the Pozuelos-Pastos Project."

Upcoming catalysts include:

• 2018 - PFS (Pozuelos and Pastos Grandes).

Pure Energy Minerals [TSXV:PE] (OTCQB:PEMIF)

On April 6 Pure Energy announced, "Pure Energy Minerals files revised NI-101 technical report for its Clayton Valley lithium project."

You can read the company's latest presentation here.

Upcoming catalysts:

• H1 2018 - Drill results at the Terra Cotta Argentina Project.

AVZ Minerals [ASX:AVZ] (OTC:AZZVF)

On April 13 AVZ announced, "Quarterly Activities and Cashflow Report." Highlights include:

• "20,000m drilling program commenced in early February with the aim to define an initial JORC compliant mineral resource.
• Significant down hole intersections of spodumene bearing pegmatite were recorded in drill holes MO18DD001 with 295.05m, MO18DD002 with 282.95m, MO18DD003 with 313.88m, MO18DD004 with 276.77m, MO18DD006 with 284.30m, and MO18DD007 with 273.20m; all confirming the thickness of the Roche Dure pegmatite within this zone.
• All holes contain a high proportion of spodumene within the pegmatite.
• Further drill core has been despatched for assaying while drill-holes MO18DD006, 007 and 008 have been logged and sampled and await dispatch to the sample preparation laboratory in Lubumbashi.
• Drilling of holes MO18DD009, 010 and 011 are progressing towards completion."

On April 30 AVZ announced: "High-grade intercepts from first resource drill holes at Manono." One example of several similar results was "Drill-hole MO18DD001 reported 295.03m @ 1.75% Li2O and 856 ppm Sn from 62.0m downhole."

The chart below compares the lithium spodumene projects by resource size (note AVZ uses an "exploration target") and grade. It does show the potential of AVZ's Manono lithium project. Second in size is EMH (European Metal Holdings), noting they have a lower grade (partially offset by tin by-product).

Source

You can view the November company presentation here.

Upcoming catalysts include:

• H1 2018 - Drill results and maiden resource estimate.
• Q4 2018 - DFS due.

Wealth Minerals [TSXV:WML] [GR:EJZN] (OTCQB:WMLLF)

Wealth Minerals has a portfolio of lithium assets in Chile, such as 46,200 Has at Atacama, 8,700 Has at Laguna Verde, 6,000 Has at Trinity, 10,500 Has at Five Salars.

No news for the month.

Investors can view the company's latest presentation here.

Piedmont Lithium [ASX:PLL] (OTC:PLLLY)

Piedmont Lithium states they are "the only US lithium spodumene project," with their 100%-owned Piedmont Lithium project in North Carolina. The company has already identified a 4+ kilometers of strike length in Phase 1 drilling, with high-grade lithium in every drill hole. Drilling is ongoing to define and increase the resource.

On April 3 Piedmont Lithium announced: "Further high grade lithium mineralisation identified during resource drilling in North Carolina."

On April 9 Piedmont Lithium announced, "Piedmont announces positive initial metallurgical results and sets development timeline."

Upcoming catalysts include:

• End Q2 2018 - Maiden JORC resource estimate.
• Q3 2018 - Scoping Study results to be announced.

You can view the company's latest presentation here, and a January 2018 Fosters Stockbrokers report here. Fosters price target is US$ 0.30, with a speculative buy.

Core Exploration [ASX:CXO] [GR:7CX]

I have added Core Exploration to the monthly news due to their strong potential to make it to production, possibly by 2020.

Core 100% owns the Finniss Lithium Project (Grants Resource) in Northern Territory Australia. Significantly they already have an off-take partner with China's Yahua ($3b market cap, large lithium producer). The offtake agreement is for the supply of one million dry metric tonnes of direct shipping lithium ore from the Grants lithium deposit. The company states - "High potential for additional resources from 500km2 covering 100s of pegmatites."

Note: Yahua is one of China’s largest lithium producers and is wholly-owned by the billion dollar Sichuan Yahua Industrial Group Co Ltd (SHE: 002497).

On April 30, Core released their Quarterly Activities Report which you can read here.

Investors can read a recent company presentation here, and a good article here.

Upcoming catalysts include:

• Mid-2018 - Maiden JORC resource estimate.
• H2 2018 - PFS completion.
• Late 2019 - Production target.

Nano One Materials [TSXV:NNO] (OTCPK:NNOMF)

On April 19 Nano One announced, "Nano One develops novel coating technique for a longer lasting battery....Nano One has developed coating technology that stabilizes cathodes for use in advanced lithium ion batteries and has applied for patent protection related to this coating technique."

Lithium projects by development stage (not updated)

Source: Sayona Mining October 2017 company presentation

Other lithium juniors

Other juniors include: ABE Resources [TSXVABE] [GR:1AJ2] (OTCQB:ABEPF), American Lithium Corp. [TSX-V: LI] (OTCQB:LIACF), Argentina Lithium & Energy Corp. [TSXV: LIT] (OTCQB: OTCQB:PNXLF), Avalon Advanced Materials [TSX:AVL] [GR:OU5] (OTCQX:AVLNF), Far Resources [CSE:FAT] (OTCPK:FRRSF), Force Commodities [ASX:4CE], Hannans Ltd [ASX:HNR]), Lake Resources [ASX:LKE] [GR:LK1], Latin Resources Ltd [ASX: LRS] (OTC:LAXXF), Lithium Australia [ASX:LIT] (OTC:LMMFF), Lithium Chile [TSXV:LITH] (OTCPK:LITH), MetalsTech [ASX:MTC], MGX Minerals [CSE:XMG] (OTC:MGXMF), NRG Metals Inc. [TSXV:NGZ] (OTCQB:NRGMF), Plateau Uranium [TSXV:PLU] [GR:QG1A] (OTCQB:PLUUF), Portofino Resources Inc.[TSXV:POR] [GR:POT], Prospect Resources [ASX:PSC], Savannah Resources [LSE:SAV] (GR:AFM], and Standard Lithium [TSXV:SLL] (OTC:STLHF).

Conclusion

The juniors are a higher risk and higher reward area. I have tried to put them mostly in order of development stage, to help investors easily understand the junior lithium mining sector.

The juniors continue to progress well and the first quarter price decline appears over now.

My highlights for April were:

• Nemaska Lithium - Secures ~C$100m from SoftBank, USD 150M streaming agreement with Orion, launches a USD 300-350M bond offering, and announces Signature of Agreement in Principle for supply of lithium hydroxide for Northvolt. An amazing month for Nemaska.
• A.I.S. Resources starts drilling at their Chiron project in their Pocitos Salar tenements in Argentina.
• Excellent drill results from AVZ Minerals such as 295.03m @ 1.75% Li2O.
• Adding in Core Exploration which recently secured China's Yahua ($3b market cap) as an off-take partner.

As usual all comments are welcome.

Editor's Note: This article covers one or more microcap stocks. Please be aware of the risks associated with these stocks.

Analyst’s Disclosure: I am/we are long NYSE:ALB, NYSE:SQM, ASX:ORE, ASX:GXY, ASX:PLS, TSX:LAC, ASX:AJM, ASX:EMH, TSXV:ILC, ASX:AVZ, ASX:LPI, ASX:PLL, ASX:SYA., TSXV:AIS, TSXV:WML, ASX:CXO. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

The information in this article is general in nature and should not be relied upon as personal financial advice.