The Conversation (0)
Dajin Resources Corp. (TSXV:DJI,OTC:DJIFF) was mentioned by Peter Epstein as, “an example of an early-stage company with substantial, 100% owned lithium brine prospects in both Nevada and Argentina” in his article entitled, “Comparison of Hard Rock Lithium Mining to Brine Lithium Harvesting.” In the article, Mr. Epstein states that Dajin’s solid financial backing and joint ventures, combined with trading at lowest market caps makes for an attractive lithium company.
As quoted in the article:
Yes, it still takes years to go from exploration to initial production, but the cost, managerial resources and time of proving up an economically viable project is considerably less. Time is money in both methods of extraction. Dajin Resources Corp, (DJI.V) (DJIFF) is an example of an early-stage company with substantial, 100% owned lithium brine prospects in both Nevada and Argentina. In Nevada, Dajin’s owns two properties, one of which is 7km from the only producing brine project in North America. In Argentina, Dajin has a large, strategic property that could be explored, especially if lithium prices continue to increase.
Funding large-scale projects of any sort, iron ore, copper, gold, etc has been a tremendous problem for the past few years. It seems that, “PEAs” done in 2010-2012 are routinely recast to show stronger economics and lower upfront costs. With large checks for huge projects nearly impossible to secure, it’s no wonder companies are trying to deliver exactly what strategic and financial investors demand, lower risk projects. What makes a project less risky? Smaller scale, green, (less fossil fuel use / emissions), a predictable and sustainable plan of action to share with local communities and government agencies, a clear path from exploration to reclamation and therefore a better chance of obtaining project financing. That is exactly what Dajin Resources aims to do.
Dajin has demonstrated, solid financial backing allowing for the possibility of a Joint Venture partnering with peers, and farming out minority interests in their 100% owned properties. Dajin has both time and options, a rare combination in this brutal natural resource downturn. Dajin trades at one of the lowest market caps of the very few viable (my opinion only) lithium plays. Those looking for pure-play lithium exposure should include Dajin on their watch lists and due diligence review. A good place to start is at Dajin’s excellent Corporate Website (Dajin.ca) and their blue-skyed S&P Market Access Profile.sp-banner
Traditional hard rock mining, is time-consuming, energy and cost intensive. Recall that I described a number of factors supporting a less risky project? (harvesting brines in Dajin’s case) A less risky project is more attractive to potential partners and investors. Riskier projects warrant a lot more due diligence, time and money to properly evaluate. A brine project, quicker into production at an initially smaller scale, with the above mentioned attributes, would have more appeal to a wider audience of interested parties.
Click here to read the article.
Click here to see the Dajin Resources Corp (TSXV:DJI,OTC:DJIFF) profile.
Disclaimer: The report referred to in this post was paid for by the company that is covered in the report, or there is some other monetary relationship between the company and the writer of the report. This may lead to a conflict between the interests of the writer of the report and the interests of investors. Due care should be taken to understand the relationship between the company and the writer of the report and to factor the relationship when making investment decisions.