Lithium Junior Miner News For The Month Of October 2018

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Includes: AAL, ABEPF, AISSF, ARYMF, AVLIF, AVLNF, AVNLF, AZZVF, BCLMF, CRECF, CYDVF, DJIFF, DMNXF, EEYMF, ERPNF, FRRSF, KDDRF, LAXXF, LEXI, LIACF, LMMFF, LSSCF, LTHHF, LTMCF, LXENF, MGXMF, MLNLF, NNOMF, NTTHF, PEMIF, PLL, PLUUF, PNXLF, STLHF, SYA, WMLLF
by: Matt Bohlsen

Summary

Lithium spot prices in China fall slightly and are now below global contract prices.

Lithium market news - Benchmark Minerals states "we are now at 50 megafactories in the pipeline."

Junior lithium miner company news - Global Geoscience delivers an outstanding PFS, and AVZ Minerals also delivers an outstanding Scoping Study.

Welcome to the October 2018 edition of the "junior" lithium miner news. I have categorized those lithium miners that won't likely be in production before 2020 as the juniors. Investors are reminded that most of the lithium juniors will most likely be needed in the mid 2020's to supply the booming electric vehicle [EV] and energy storage markets. This means investing in these companies requires a higher risk tolerance, and a longer time frame.

October saw continued strong news for the lithium sector with the juniors making steady progress despite poor stock market sentiment and trade wars.

Lithium market and prices summary

During October, 99.5% lithium carbonate China spot prices were down 1.27%. The chart below shows China lithium carbonate prices have fallen to $US11,720/t, and China lithium hydroxide prices also down to US$16,380/t. Global Lithium Carbonate Equivalent contract prices are steady, with SQM now expecting prices to remain flat in H2 2018 (previously they were expecting a slight fall).

Lithium China Spot and global contract prices

https://static.seekingalpha.com/uploads/2018/10/23/37628986-15403092334258215.png

Source: Lithium Americas October 2018 company presentation

Lithium market news

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 October 2018" article. Highlights include:

  • Benchmark Mineral Intelligence - "Today we are at 50 megafactories worldwide. We do not expect this battery arms race to slow down anytime soon."
  • South Korea's SK Innovation to invest $354 million in EV battery parts plant in China.
  • EU to invest in the future of the auto industry with billions in funding for companies building electric battery plants.

Junior lithium miners company news

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

On October 9 Bacanora Lithium announced:

Bacanora Lithium plc. NI-43-101 lithium resource estimate at Zinnwald Project, Germany. Bacanora Lithium plc, the London listed lithium company, is pleased to announce NI 43-101 compliant Measured + Indicated resources of 124,974 tonnes of contained lithium ('Li') at its 50% owned Zinnwald lithium project ('Zinnwald' or 'the Project') in southern Saxony, Germany, representing a 30% increase from the previous PERC resource estimate of 96,200 tonnes. The total resource estimate for the Project (Measure + Indicated + Inferred) is 142,240 tonnes of contained Li. The mineral resource estimate forms part of the Feasibility Study ('FS') for a high value lithium product operation at Zinnwald that will supply the fast-growing European battery and automotive sectors. The FS remains on course to be completed in Q2 2019.

Investors can view the company's latest presentation here.

Upcoming catalysts include:

  • 2018 - Project financing announcements for Sonora.
  • 2020 - Plan to commence Sonora production ramping to 17,500 tpa, and in stage two 35,000 tpa.

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

Core 100% own the Finniss Lithium Project (Grants Resource) in Northern Territory Australia. Significantly they already have an off-take partner with China's Yahua ($2.4b 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."

On October 22 Core Exploration announced: "Grants lithium resource increased by 42% ahead of Definitive Feasibility Study." Highlights include:

  • "Core’s high grade Grants Lithium Resource has been upgraded, adding 42% more tonnes to the inventory at the high-grade of 1.5% Li2O.
  • Two-thirds of the Grants Lithium Resource is now classified as Measured or Indicated.
  • Finniss Project Lithium Resource now stands at 4.3Mt at 1.4% Li2O.
  • The Finniss project Definitive Feasibility Study [DFS] remains on track for completion in late November 2018.
  • DFS focussed on mining and production of high-grade lithium concentrate near Darwin, with development planned to commence in 2019
  • Finniss Project Lithium Resource is one of the highest-grade undeveloped lithium deposits in Australia."

Investors can read a recent company presentation here.

Upcoming catalysts include:

  • Late 2019/2020 - Production planned to begin.

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

No news for the month.

Investors can read my article "Critical Elements - A Lithium Miner With An Exceptional Buying Opportunity".

Upcoming catalysts include:

  • H2 2018 - Rose Stage 2 Feasibility Study due.
  • 2018/2019 - Project financing announcements, potential resource upgrade.
  • 2021/22 - Possible producer.

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

On September 24 Sayona announced: "Positive Authier Definitive Feasibility Study."

"Key findings of the DFS include:

  • Pre-tax NPV of C$184.8 million and IRR 33.7% (real terms at 8% discount rate).
  • Annual average concentrate production of 87,400 tonnes at 6% Li2O.
  • Average annual revenue of C$80 million.
  • Mine gate cash costs of C$416/t and FOB Port cash costs of C$482/t (US$366/t).
  • Initial capital expenditure of C$89.9 million.
  • Updated Ore Reserve of 12.10 Mt @ 1.00% Li2O (Proven Reserve 6.10Mt @ 0.99% Li2O and Probable Reserve 6.00 Mt @ 1.02% Li2O) delivers a mine life of 18 years."

Investors can read the company presentation here, and my Trend Investing CEO interview "Sayona Mining CEO Corey Nolan Talks With Matt Bohlsen Of Trend Investing."

Upcoming catalysts include:

  • 2018/19 - Project financing and off-take.
  • 2020/21 - Possible producer.

Argosy Minerals [ASX:AGY][GR:AM1] (OTCPK:ARYMF)

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

No news for the month.

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

Global Geoscience [ASX:GSC] [GR:4G1] soon to be ioneer Ltd [ASX:INR]

On September 28 Global Geoscience announced:

Global Geoscience Limited to become ioneer Ltd. Australian-base lithium-boron developer Global Geoscience Limited is excited to announce plans to change the Company’s name to ioneer Ltd. The name change reflects its transition and growth into an emerging lithium-boron supplier and our passionate commitment to our mission of responsibly and profitably producing the materials necessary for a sustainable future.

On October 23 Global Geoscience announced: "Updated Rhyolite Ridge Mineral Resource statement." Highlights include:

"The Indicated and Inferred Resource for the South Basin at Rhyolite Ridge is now estimated to total (at a 1,050ppm lithium cut-off):

  • 475 million tonnes at 1,610 ppm lithium (equivalent to 0.9% lithium carbonate) and 4,100 ppm boron (equivalent to 2.3% boric acid).
  • Containing 4.1 million tonnes of lithium carbonate and 10.9 million tonnes of boric acid.

The Indicated and Inferred Resource includes a high-grade, lithium-boron portion now estimated to total (at a 1,050 ppm Li and 0.5% B cut-off):

  • 121 million tonnes at 1,740 ppm lithium (equivalent to 0.9% lithium carbonate) and 1.26% boron (equivalent to 7.1% boric acid)
  • Containing 1.1 million tonnes of lithium carbonate and 8.6 million tonnes of boric acid."

On October 23 Global Geoscience announced: "Outstanding results from Rhyolite Ridge Pre-Feasibility." Post-tax NPV7% of US$1,820m, post-tax IRR of 27.7%, initial CapEX US$599.5m.

Source

Upcoming catalysts include:

  • 2019/20 - FS, off-take and project financing discussions.

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

On October 3 AIS Resources announced:

A.I.S. Resources extends Guayatayoc and Vilama properties option for six months and enters into loan agreement. A.I.S. Resources Limited is pleased to announce that further to the Company’s September 13, 2018 news release AIS has paid US$200,000 to extend its right to explore the Guayatayoc III, Guayatayoc Mina and Vilama properties from October 1, 2018 to March 31, 2019. The Company may exercise its option to acquire the property for US$4.5million.

On October 9 AIS Resources announced:

A.I.S. Resources announces drill permit issued for Guayatayoc Mina, Argentina. A.I.S. Resources Limited is pleased to announce that it has been issued with a seismic and drilling exploration permit for Guayatayoc Mina. It is expected that the permit for Guayatayoc III will also be issued shortly.

On October 9 AIS Resources announced: "A.I.S. Resources announces Geophysics report received and trenching completed at Salinitas Project, Salinas Grandes, Northern Argentina,"

On October 12 AIS Resources announced:

A.I.S Resources completes geophysics analysis at Guayatayoc Salar, Jujuy Province, Northern Argentina with outstanding results. A.I.S. Resources Limited is pleased to announce that the final TEM Geophysics report from Quantec with detailed analysis of the TEM profiles has been interpreted. Two major aquifer structures, one almost 8km wide and 100 metres in depth, based on low resistivity values have been identified. In five of the six profiles analysed all have resistivity values below 0.026 ohm-m which is considered exceptional. Two independent geophysicists have examined the profiles and come to the same conclusion as our Exploration Director, Phil Thomas.

Investors can read the company presentation here, or my Phillip Thomas interview here.

Upcoming catalysts include:

  • 2021 - Plan to commence lithium production, initially 8,000 tpa, later 16,000tpa 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 October 22 Kidman Resources announced: "Kidman Resources announces completion of Kwinana Lithium Refinery PFS and updated Mine & Concentrator Scoping Study. Results confirm Covalent Lithium will be a low cost, integrated producer of battery-grade lithium hydroxide for the high growth electric vehicle market."

On October 25 Kidman Resources announced: "Kidman Resources announces capex and working capital financing term sheet with SQM in respect of Mt Holland Lithium Project. US$100 million capex facility plus US$10 million funding for near term JV commitments."

You can view the latest company presentation here.

Upcoming catalysts include:

  • 2018 - PFS release expected.
  • H2 2021 - Commence lithium production.

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

On October 16 Neo Lithium announced:

Neo Lithium submits environmental baseline study to the provincial authorities and provides operations updates. Comprehensive environmental baseline study concludes: [I] minimal impact on brine levels even at extraction scenarios of 60,000 tonnes of lithium carbonate per year; and [II] no material environmental issues from proposed production activity at the project. EBS submitted to the Catamarca Province authorities, paving way for final mining approvals. Pilot evaporation ponds expanded and producing high grade concentrate. Lithium carbonate pilot plant completed, with operation and training starting imminently.

Investors can read my recent article "An Update On Neo Lithium".

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:

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

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

On October 1 European Metals Holdings announced: "DFS level drilling permits granted-lithium hydroxide testwork commenced." Highlights include:

  • "Permits required for the DFS resource drilling campaign have been granted.
  • A total of 13 drill holes for a total drilled length of 3,386 metres have been permitted.
  • The first 4 geotechnical drill holes at the proposed site of the mine portal have been completed.
  • Testing of the revised lithium hydroxide product flowsheet commenced on schedule."

Upcoming catalysts include:

  • 2018 - Off-take discussions.
  • Late 2018 - Updated PFS to be released.
  • 2019/20 - Bankable Feasibility Study to be released.
  • 2022 - Production planned to commence.

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 September 28 Birimian announced:

Update on airborne magnetic and radiometric results. Highly prospective broad gold corridor identified extending from Morila to the Batouba Sud application (Morila-Domba Shear Zone) defining a 20km long exploration target zone within Birimian tenements. Further ground work planned to delineate high priority zones and drill targets on the gold projects.

You can view the latest company presentation here.

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

On October 16 Lithium Power International announced:

LPI appoints Chief Executive Officer and Managing Director. Lithium Power International Limited is pleased to announce the appointment of a new CEO and Managing Director, Cristobal Garcia-Huidobro. The appointment of this highly qualified Managing Director, together with the appointment of Martin Borda as Non-Executive Director (announced on 30 August 2018) adds considerable breadth of experience to the Board as LPI moves into the critical development phase of the Maricunga Project, which is regarded as one of the highest quality pre-production lithium brine projects in the world.

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

Upcoming catalysts:

  • Q4 2018 - DFS to be released.

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

On October 17 Advantage Lithium announced: "Cauchari JV Project update continued success in Phase III program in the SE Sector with hole CAU22 averaging ~550 mg/l Li." Highlights include:

  • "Systematic brine sampling completed in CAU22 averaged 549 mg/l lithium and 3,630 mg/l potassium from 146.5-290.5 m depth, with samples not yet received below this depth. The brine shows a similar grade and very low average Mg/Li ratio of 2.4:1, similar to that demonstrated during pumping of CAU11 – excellent for conventional brine processing.
  • These results from CAU22, together with recently acquired TEM electrical geophysics in this area, confirm the extension of brine mineralisation in the SE sector to the fault forming the eastern boundary of the Cauchari basin.
  • The Phase III infill drilling is the resource conversion program that aims to convert Inferred to Measured and Indicated resources by early 2019, with drilling on track for this timing."

Upcoming catalysts:

  • Q2, 2019 - DFS due to be released.

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 October 15 Millennial Lithium Corp. announced:

Millennial expands lithium brine horizon at Pastos Grandes. Millennial Lithium Corp. is pleased to report positive drilling and analytical results from the latest exploration wells at its Pastos Grandes Project in Salta, Argentina. Two new exploration holes (PGMW18-16 and 17) have intersected, and bottomed in, lithium-bearing brine zones, with PGMW18-17 intersecting positive lithium grades in a 545 meter thick lithium-bearing horizon, including a high grade of 701 mg/L Li. A 40 person camp is being installed at the site, including a state of the art solar-hybrid power system as work advances at the site on a pilot plant to produce battery grade lithium carbonate. Millennial is also pleased to announce that it has engaged Credit Suisse to act as a lead financial advisor to assist the Company with respect to potential future project financing alternatives and ongoing strategic discussions.

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

Upcoming catalysts:

  • Q1 2019 - Feasibility Study results due for Pastos Grande.

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 October 4 LSC Lithium announced: "LSC Lithium announces progress on infrastructure for the Pozuelos-Pastos Grandes Project." Highlights include:

  • "Allocation of gas capacity to support electricity and steam generation for 20ktpa lithium carbonate operation.
  • Fresh water sources identified with quality confirmed for future operations.
  • Commencement of geotechnical investigations for ponds and plant infrastructure covering approximately 800 ha in the Pozuelos salar.
  • Completion of exploration camp which will be converted and expanded to a future operations camp.
  • Application submitted for permit for brine pipeline corridor connecting Pastos Grandes and Pozuelos with approval expected in Q1 2019. This will secure the planned production mix of approximately 35% of brine from Pastos Grandes and 65% from Pozuelos, providing an efficient blend."

Upcoming catalysts include:

  • Q4 2018 - Mineral Resource and PEA (Pozuelos and Pastos Grandes).
  • Mid 2019 - PFS (Pozuelos and Pastos Grandes)

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.

On October 9 Wealth Minerals announced:

Wealth hires from Albemarle Corporation key technical executive to develop lithium assets. Wealth Minerals Ltd. announces it has hired a top professional to implement the Company’s plan for advancing its lithium assets towards production. Cesar Jil, formerly Manager of Lithium Extraction Technologies at Albemarle Corporation (NYSE: ALB, Market Cap $11.1BN) (“Albemarle”), will join the Wealth team as Chief Technical Officer for Chile, effective immediately.

Investors can view the company's latest presentation here.

Upcoming catalysts include:

  • H2 2018 - Laguna Verde PEA due out.

Lithium Chile Inc. [TSXV:LITH][GR:KC3] (OTCQB:LTMCF)

Lithium Chile has 15 properties in Chile of which 5 have been identified for drilling, their Helados project has 30,000 hectares. They have a 6,600 hectare project that adjoins SQM's property at Atacama.

On October 11 Lithium Chile announced:

Lithium Chile continues to intercept lithium brines on its Olllague drill program. Lithium Chile Inc. is pleased to announce it has encountered lithium bearing brines in three additional drill holes at its wholly owned Ollague Project, Chile. Results for OLL-01-18, OLL-02-18, OLL-03-18 and OLL-04-18 are outlined in the table below. Drilling continues to confirm the reliability of TEM geophysical profiles in identifying the brine carrying highly conductive zones. In addition, the drilling suggests that lithium grades increase with depth.

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

On October 15 Pure Energy Minerals announced:

Pure Energy announces third amending agreement to Clayton Valley option and corporate update. Pure Energy Minerals Limited announces that it has entered into a third amending agreement to the Clayton Valley Option Agreement (the “Option Agreement”) with GeoXplor Corp. (“GeoXplor”) and Clayton Valley Lithium (“CVL”). The Option Agreement covers mineral claims in Clayton Valley, Nevada that were the subject of the original agreement with GeoXplor and CVL in 2014, as well as those previously held by Lithium X Energy Corp (“Lithium X”), which were acquired by the Company in May, 2017 (the “Property”).

You can read the company's latest presentation here.

Upcoming catalysts:

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

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

On October 9 AVZ announced: "Scoping Study highlights strong economic potential of Manono Lithium Project." Highlights include:

  • "Case 1 (2 Mtpa) pre-tax pre-royalties NPV10 of approximately US$1.6 Billion (AVZ’s 60% share is approximately US$0.93Bn) with an estimated IRR greater than 90% based on ±35% accuracy and including US$36M in capital contingency.
  • Scope for annual production of approximately 440,000 tonnes per annum (tpa) at a minimum of 5.8% Li2O concentrate from Case 1 throughput of 2 million tonnes per annum (Mtpa) of pegmatite ore with low strip ratio of 0.7:1.
  • F.O.B. Operating costs to Dar-es-Salaam estimated at approximately US$355 per tonne of concentrate for 2Mtpa.
  • Metallurgical test work indicates recoveries in excess of 80% are achievable. Capex estimated for Case 1 throughput at approximately US$150 to $160 Million (accurate to ±35% and includes US$36M contingency).
  • Study for Case 2 for 4Mtpa and Case 3 for 10Mtpa in progress and will be completed as soon as practicable.
  • The potential for tin by-product credits was not taken into consideration in this analysis. It is expected that these credits will be included in the Full Feasibility Study [FFS]."

"AVZ Minerals Managing Director, Nigel Ferguson, said that “The AVZ Minerals Board is extremely pleased with the results of the independent Studies and intends to immediately commence a Full Feasibility Study. The Studies undertaken not only demonstrate the potential for excellent economic outcomes, but also highlight the long-life, low-cost qualities typical of world-class Tier 1 assets. The Manono Lithium Project is now the largest undeveloped hard rock lithium project globally in terms of grade, mine life and expandability.”

On October 19 AVZ announced:

AVZ continues to drill record lithium intercept 5 Mtpa & 10 Mtpa Scoping Studies commence. MO18DD032 intersected 262.02m* @ 1.74% Li2O & 698ppm Sn from 105.03m down-hole on drill section 7200mN. Roche Dure mineralisation continues to increase and we look forward to releasing an updated Mineral Resource Estimate for Manono before the end of the year.

Upcoming catalysts include:

  • Q2 2019 - Full Feasibility Study

Plateau Energy Metals [TSXV:PLU] [GR:QG1A] (OTCQB:PLUUF)

Plateau Energy Metals Inc. (formerly Plateau Uranium) is a Canadian lithium and uranium exploration and development company focused on its properties on the Macusani Plateau in southeastern Peru. The Company states that "they control all reported uranium resources known in Peru, significant and growing lithium resources and mineral concessions covering over 91,000 hectares (910 km2) situated near significant infrastructure."

On October 4 Plateau Energy Metals Inc. announced: "Plateau reports additional preliminary metallurgy results. Work program continues with three additional processing route options for Falchani Project."

On October 9 Plateau Energy Metals Inc. announced: "Plateau confirms western extension. 65 m of 3,374 ppm Li (0.73% Li2O) from 9-74 m in Li-rich tuff unit within broader interval of 172 m of 2,908 ppm Li (0.63% Li2O) from 7-179 m (End of Hole – EOH) (PLAT14-V Vertical Hole)."

Upcoming catalysts include:

  • Q4 2018 - Complete PEA for Li-U production.

Prospect Resources [ASX:PSC]

Prospect Resources own the Arcadia Lithium Project in Zimbabwe. They have an ore Reserve of 26.9Mt @ 1.31% Li2O and 128 ppm Ta2O5. Mineral Resources are 43.2 Mt @ 1.41 % Li2O and 119 ppm Ta2O5. The company has an equity off-take partner Sinomine for approximately 70% of Phase 1 production over 7 years, including a S$10,000,000 prepayment under off-take agreement.

On October 3 Prospect Resources announced:

Prospect increases ownership of the Arcadia Lithium Mine to 87%. Prospect Resources Ltd is pleased to announce it has reached a conditional agreement to increase its ownership in the Arcadia Lithium Mine from 70% to 87%. Under the agreement, Farvic Consolidated Mines Pvt Ltd (“Farvic”) has agreed to transfer the shares it holds in Prospect Lithium Zimbabwe (Pvt) Ltd (“PLZ”) (holder of the Arcadia Lithium Mine) to Prospect Minerals Pte Ltd, a wholly owned subsidiary of the Company. In consideration for the transfer of shares in PLZ, the Company will issue 94,976,800 fully paid ordinary shares to Farvic, representing a dilution to existing Prospect shareholders of 4.6%, and pay Farvic A$1,187, 210 in cash. Upon completion of the transaction, the Company’s equity interest in PLZ will increase from 70% to 87.

Cypress Development Corp. (TSXV:CYP) (OTCQB:CYDVF)

Cypress Development owns tenements in the Clayton Valley, Nevada, USA.

On October 1 Cypress Development Corp. announced:

Cypress Development files Preliminary Economic Assessment [PEA] for Clayton Valley Lithium Project, Nevada, begins Prefeasibility Study. Dr. Bill Willoughby, Cypress CEO commented: “Finalizing the PEA for Clayton Valley is a significant milestone. The project has advanced from the first drill hole to a positive PEA in under two years. Our next steps have the potential to unlock shareholder value as we continue with infill drilling, further metallurgical studies, and a prefeasibility study to provide more detailed information related to the project’s economic assumptions.”

On October 3 Cypress Development Corp. announced:

Cypress Development and Dajin Resources to pursue joint venture on Alkali Spring Valley Lithium Property, Nevada. Cypress Development Corp. is pleased to announce that it has entered into a non-binding letter of intent (“Letter Agreement”) with Dajin Resources Corp. (TSX-V: DJI) (OTCQB: OTCQB:DJIFF) (“Dajin”) on Dajin’s Alkali Spring Valley Lithium Property. The property is located 12 kilometers northeast of Cypress’ Clayton Valley Lithium Project in Nevada.

The Company is currently doing metallurgical testing.

Piedmont Lithium [ASX:PLL] (PLL)

Piedmont Lithium state 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.

On October 17 Piedmont Lithium announced:

Encouraging initial drilling results from new Central and Sunnyside properties. Piedmont has received assay results from initial drilling at its new Central and Sunnyside properties. 7 holes were completed at Sunnyside and 3 holes were completed at Central. Both properties yielded significant intercepts of high-grade lithium mineralisation, including: 34.0m @ 1.04% Li2O of continuous mineralization across one pegmatite in Hole 18-CT-002. 20.9m @ 1.42% Li2O of continuous mineralization across one pegmatite in Hole 18-SS-001.

Upcoming catalysts include:

  • Early 2019 - PFS to be completed.

You can view the company's latest presentation here.

Lithium Energi Exploration Inc. [TSXV:LEXI] (OTC:LXENF)

Lithium Energi (“LEXI”) is a lithium company focused on exploration, development and acquisition of lithium brine properties in Argentina. The Company has secured the 2nd largest lithium property package of any company in Argentina, consisting of over 240,000 hectares in the Catamarca province right in the heart of the most prolific, lithium brine production areas.

No news for the month.

You can view the company's latest presentation here.

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

On October 1 Nano One Materials announced:

Nano One Chairman awarded entrepreneur of the Year. Mr. Matysek said “I am very excited and humbled by receiving this prestigious award. I have made a career of providing the necessary inputs in support of the electric vehicle revolution. I am more confident than ever that Nano One’s management, scientific team and ground-breaking technology will be integral in the development of future battery solutions.”

Other lithium juniors

Other juniors include: ABE Resources [TSXVABE] [GR:1AJ2] (OTCQB:ABEPF), Ardiden [ASX:ADV], American Lithium Corp. [TSX-V: LI] (OTCQB:LIACF), Argentina Lithium and 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]), Kodal Minerals (LSE-AIM: KOD), Lake Resources [ASX:LKE] [GR:LK1], Latin Resources Ltd [ASX: LRS] (OTC:LAXXF), Lithium Australia [ASX:LIT] (OTC:LMMFF), MetalsTech [ASX:MTC], MGX Minerals [CSE:XMG] (OTC:MGXMF), NRG Metals Inc. [TSXV:NGZ] (OTCQB:NRGMF), Portofino Resources Inc.[TSXV:POR] [GR:POT], Prospect Resources [ASX:PSC], Rock Tech Lithium [CVE:RCK], Savannah Resources [LSE:SAV] (GR:AFM], and Standard Lithium [TSXV:SLL] (OTC:STLHF).

Conclusion

The juniors are a higher risk and higher reward area. October again saw excellent progress from the juniors with several great feasibility results.

My highlights for October were:

  • Sayona Mining - Positive Authier Definitive Feasibility Study. Pre-tax NPV7% of C$184.8m and IRR 33.7%. CapEx C$89.9m.
  • Global Geoscience - "Outstanding results from Rhyolite Ridge Pre-Feasibility." Post-tax NPV7% of US$1,820m, post-tax IRR of 27.7%, initial CapEX US$599.5m.
  • A.I.S. Resources announces drill permit issued for Guayatayoc Mina and "outstanding geophysics results" at Guayatayoc Salar.
  • Neo Lithium - "Pilot evaporation ponds expanded and producing high grade concentrate. Lithium carbonate pilot plant completed, with operation and training starting imminently."
  • AVZ Minerals - "Scoping Study highlights strong economic potential of Manono Lithium Project." Case 1 (2 Mtpa) pre-tax pre-royalties NPV10 of approximately US$1.6 Billion (AVZ’s 60% share is approximately US$0.93Bn) with an estimated IRR greater than 90%. CapEx estimated at US$150-$160 M.
  • Plateau Energy Metals - "Plateau confirms western extension. 65 m of 3,374 ppm Li (0.73% Li2O) from 9-74 m in Li-rich tuff unit."
  • Prospect Resources increases ownership of the Arcadia Lithium Mine to 87%.

As usual all comments are welcome.

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

Disclosure: I am/we are long NYSE:ALB, GANFENG LITHIUM [SHE: 2460], SE: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, TSXV:PLU, TSXV:CYP.

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.

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