By Sean Mason, SmallCapPower.com Tesla Motors’ (NASDAQ: TSLA) Gigafactory in Nevada, the world’s largest lithium battery plant, will require about 24,000 tonnes of lithium hydroxide annually, according to Benchmark Mineral Intelligence. To put that into perspective, in 2014, 50,000 tonnes of lithium hydroxide was consumed globally. Tesla’s desire would be to source this lithium locally, but Albemarle’s …
By Sean Mason, SmallCapPower.com
Tesla Motors’ (NASDAQ: TSLA) Gigafactory in Nevada, the world’s largest lithium battery plant, will require about 24,000 tonnes of lithium hydroxide annually, according to Benchmark Mineral Intelligence. To put that into perspective, in 2014, 50,000 tonnes of lithium hydroxide was consumed globally. Tesla’s desire would be to source this lithium locally, but Albemarle’s Silver Peak mine is the only producing lithium mine operating in the United States, with output of about 6,000 metric tons of lithium carbonate equivalent per year. Thus, for Albemarle to try and meet this potential demand from Tesla it would have to acquire additional supply, which could come from the juniors on our list.
Lithium X Energy Corp. (TSXV:LIX): Lithium X would likely be a priority target for Albemarle if, for no other reason, that it has an option to become the largest claims holder in Nevada’s Clayton Valley with over 15,020 acres (6,078 hectares). Its Nevada properties are also directly north and south of Albemarle’s lithium mining operation. Lithium X announced recently that it has begun the Phase 1 exploration drill program at its Clayton Valley North Lithium Project.
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Nevada Sunrise Gold Corporation (TSXV:NEV): Nevada Sunrise has an option to acquire properties in the Clayton Valley that border Albemarle to the northeast as well as Lithium X to the southwest. Nevada Sunrise’s most valuable asset currently, though, could be its option to purchase water rights in the Clayton Valley, which would allow for 1,770 acre/feet of water use for mining and milling per year. On August 29, 2016, Nevada Sunrise announced that it had completed an agreement with Advantage Lithium Corp. (see company description below), whereby Advantage can earn working interests in five of Nevada Sunrise’s lithium exploration projects located in Esmeralda County, Nevada, by incurring C$3.0 million in exploration expenditures. Advantage will also be granted an option to acquire State of Nevada water right Permit 44411. In return, Nevada Sunrise Gold will receive C$600,000 in cash as well as 2,071,447 shares of Advantage.
Albemarle filed an official protest of Nevada Sunrise’s water rights option with the Nevada Division of Water Resources back in April and, depending on the outcome it might be easier for to Albemarle just to acquire this C$13 million market cap company. Find out why Mercenary Geologist Mickey Fulp likes Nevada Sunrise Gold >>
Advantage Lithium Corp. (TSXV:AAL): Advantage Lithium recently signed an option agreement to acquire an interest of up to 70% in three Nevada lithium projects, 50% in two Nevada lithium projects and 100% of certain water rights in the Clayton Valley from Nevada Sunrise Gold. Advantage is led by Dev Randhawa, a successful resource industry entrepreneur and founder of Fission Uranium. On September 1, 2016, Advantage Lithium announced that it will begin drilling three holes in late September of this year (approximately 1,500 metres in total), focusing on lithium brine aquifer targets within close proximity to Albemarle’s Silver Peak mine.
Nevada Energy Metals (TSXV:BFF): The Company has developed a Project Generator Model for Nevada lithium claims with interests in seven lithium projects in the state, which includes ownership of 77 claims in the Clayton Valley, only 250m from Albemarle’s operations.
Sienna Resources (TSXV:SIE): Sienna Resources recently acquired the Clayton Valley Deep Basin Lithium Brine Project, which is located directly between, and bordering, properties belonging to Pure Energy Minerals and Lithium X Energy. Sienna also acquired the Esmeralda Lithium Project in the Clayton Valley earlier this year. Find out which Sienna executive was a big buyer of his Company’s stock recently>>
Cypress Development (TSXV:CYP): Cypress has granted an option to Pure Energy Minerals of up to a 70% undivided interest in Cypress’ 1,520-acre Clayton Valley land package. Should this option fully vest, Cypress Development would own more than two million shares of Pure Energy Minerals, and Pure Energy would be required to spend US$1.8 million on exploration expenditures within four years to earn its 70% interest.
Dajin Resources (TSXV:DJI): Dajin holds a 100% interest in 265 placer claims totaling 2,138 hectares in Teels Marsh, Nevada as well as 191 placer claims totaling 1,558 hectares in Alkali Lake, Nevada, not far from Albemarle’s mine. Both properties have good access and infrastructure. Discover more insight on Dajin Resources>>
Eureka Resources (TSXV:EUK): Eureka recently acquire a 50% interest in the Gemini Lithium Project, which comprises 247 placer mining claims totalling 4,940 acres (2,000 hectares), in the western Lida Valley of Nevada.
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Editorial Disclosure: Nevada Sunrise Gold, Nevada Energy Metals, Sienna Resources, Cypress Development, Dajin Resources, and Eureka Resources are clients of the Investing News Network. This article is not paid-for content.