USA News Group
Commentary
Issued on behalf of Lithium South
Development Corporation
VANCOUVER, BC, July 15, 2024 /PRNewswire/ -- USA News Group – Though prices are down
from previous highs seen in 2022, the lithium industry as a whole
is witnessing major shifts so far in 2024. Within Q1 2024, the
global lithium industry has delivered significant growth in
reserves and resources, surging to 303.5 million metric tons,
representing a 52.2% increase compared to the same period just
three years ago. As lithium suppliers have begun to creatively
shift how the metal is bought and sold, some have resorted to
holding a series of auctions where potential buyers compete for
cargoes via bids, skirting the norm of long-term contracts locked
in at fixed prices. As the market braces for lithium demand's
expected growth of more than 40x on the way to 2030, miners
continue to develop several lithium projects, including Lithium
South Development Corporation (TSXV:LIS) (OTC:LISMF), Sigma
Lithium Corporation (NASDAQ: SGML) (TSXV: SGML), Lithium
Ionic Corp. (TSXV: LTH) (OTCQX: LTHCF), Albemarle
Corporation (NYSE: ALB), and Standard Lithium Ltd.
(NYSE-American: SLI) (TSXV: SLI).
In late April, Lithium South Development
Corporation (TSXV:LIS) (OTC:LISMF) filed a new Preliminary
Economic Assessment (PEA) on its flagship Hombre Muerto North
Lithium Project. The new PEA further bolstered Lithium
South's plans to advance the development of a lithium
carbonate production facility with an annual output of 15,600
tonnes. The assessment revealed a promising financial outlook, with
an after-tax Net Present Value (NPV) of US$938 million and an Internal Rate of Return
(IRR) of 31.6%. The project has a payback period of just 2.5 years.
(see note 1 below )
"We are very pleased to have achieved this important milestone
for the HMN Li Project," said Adrian F.C.
Hobkirk, Founder, President and CEO of Lithium South.
"The robust economics and room for expansion indicate a promising
future for Lithium South."
Since the PEA filing, Lithium South has also provided an
update detailing progress on its first pumping well to be located
on the largest claim block in the 5-claim salar located HMN Li
package—the 2,089-hectare Alba
Sabrina block. The well is currently pumping at a rate of
25L/second, with a pumping rate increase expected to come after
some maintenance takes place.
Lithium South wants to mention in the update expressions
of interest from several companies involved in the lithium
industry. They're currently involved in discussions regarding
financial support and/or project participation, which included a
recent 3-day site visit completed by an unnamed lithium project
developer.
Third-party interest in Lithium South's assets isn't new,
as the company established a pivotal cooperative development
agreement for the HMN Li Project with Korean conglomerate
POSCO, marking a significant step towards lithium
production. This arrangement followed up a significant announcement
at the end of 2023, when Lithium South updated its
NI 43-101 technical report for the flagship HMN Li asset. The
update revealed a substantial 175% increase in lithium resources,
now totaling over 1.58 million tonnes of lithium carbonate
equivalent (LCE). ( see note 2 below )
At the Port of Vitoria in Brazil, Sigma Lithium
Corporation (NASDAQ: SGML) (TSXV: SGML) announced it has
commenced loading its ninth shipment of Quintuple Zero Green
Lithium, totaling 22,000 tonnes, destined for LX
International, formerly LG International. The company
states it has demonstrated significant progress in monetizing a
commercial premium that reflects the value in use generated for its
customers by its proprietary Quintuple Zero Green Lithium product,
which achieved a fixed formula of 9% of lithium
hydroxide quoted at LME represents a meaningful increase over
previous prices achieved.
News of the shipment came quickly after a previous announcement
from Sigma Lithium, regarding an upgrade of its proven and
probable reserves at its flagship Grota do Cirilo hard rock
lithium mine, by a significant 40% (or 22.2 million tonnes).
"This significant increase in mineral Reserves demonstrates our
commitment to continuously invest in Brazil to unlock the full economic potential
of our mineral concessions," said Ana Cabral Co-Chairperson and CEO
of Sigma Lithium. "We believe Brazil is poised to become one of the global
leaders in Lithium production as a result of its optimum conditions
for integrated lithium industrial processing and mining: legal
certainty in a consolidated mining code, rule of law,
straightforward permitting processes, tropical climate, green and
affordable renewable energy and power lines infrastructure."
Also for other projects in Brazil, Lithium Ionic Corp. (TSXV:
LTH) (OTCQX: LTHCF) recently arranged for an $11 million financing which will go towards
the company's two flagship projects, Itinga and Salinas. The
private placement comes right after Lithium Ionic announced
it had signed an agreement to acquire the remaining 15% of select
Salinas properties, located within the Curralinho Pegmatite Field
of the lithium-rich Araçuaí Pegmatite District, in Minas Gerais,
Brazil. Earlier in April,
Lithium Ionic had announced its maiden mineral resource
estimate (MRE) and initiation of its preliminary economic
assessment (PEA) at the Salinas Project, further increasing the
company's regional mineral resources by 45%.
"The MRE we have already established at Salinas represents a
cornerstone asset in our portfolio of projects and we strongly
believe that our plans to explore adjacent properties could
significantly scale our mineral resources," said Blake Hylands, CEO of Lithium Ionic. "We
are very pleased to have secured a path to 100% ownership of these
prospective properties."
Over in Chile, the country's
economic development agency CORFO recently reached an
agreement with Albemarle Corporation (NYSE: ALB)
to increase its production quota by 240,000 metric tons of LME. The
proposed increase would in effect raise Albermarle's
production by roughly 50%, from its current amount of about 460,000
metric tons of LME. The quota increase announcement came just one
day after news broke that Albemarle would pay US$15 million to the Chilean government to
end an ongoing lithium controversy.
Meanwhile, in the United
States, Albemarle
also announced it had agreed to deliver extracted limestone to
a regional rock quarry adjacent to its proposed Kings Mountain lithium mine in North Carolina. Albemarle is currently preparing
permits to submit to NC regulatory agencies this year, and
undergoing studies and social impact assessments to determine the
feasibility of reopening the mine. According to Albemarle, part of the company's plan
includes repurposing byproduct materials to benefit the local
economy.
In south-west Arkansas and east
Texas, Standard Lithium
Ltd. (NYSE-American: SLI) (TSXV: SLI) recently secured a
partnership with multinational energy company Equinor
ASA, which has agreed to invest up to $160 million and secure a 45% stake in
Standard Lithium's projects. As per the deal, Equinor
is starting with a $30 million cash
payment to Standard Lithium at closing, and a work program
solely funded by Equinor of $60
million.
"We believe this partnership with a global energy major
validates the quality of our team, our DLE flowsheet and
experience, and our world-class lithium-brine resources in
Arkansas and Texas," said Dr. Andy
Robinson, Director, President and COO of Standard
Lithium. "We're at a crucial stage in our Company's growth and
this partnership with Equinor will be fundamental to
the continued de-risking and execution of these important
projects."
Source:
https://usanewsgroup.com/2023/10/18/the-lithium-race-to-power/
CONTACT:
USA NEWS
GROUP
info@usanewsgroup.com
(604) 265-2873
Mr. William Feyerabend, a
Consulting Geologist and Qualified Person under National Instrument
43-101 participated in the production of this advertisement,
and approves of the technical and scientific disclosure contained
herein pertaining to Lithium South.
Note 1: The report titled, N.I. 43-101
Preliminary Economic Assessment Hombre Muerto North Lithium
Project, Salta, Argentina, was completed by
Knight Piesold Consulting and JDS Energy and Mining Inc., and SEDAR
filed April 30, 2024
Note 2: Report titled Updated Mineral Resource
Estimate – Hombre Muerto North Project, NI 43-101 Technical Report
Catamarca and Salta, Argentina, Mark
King, PhD, PGeo, Peter Ehren,
M.Sc, MAusIMM, September 5th, 2023
and SEDAR Filed November 6, 2023
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Qualified Person as defined under National Instrument 43-101. Mr.
Feyerabend approves of the scientific and technical disclosure
pertaining to Lithium South contained within this advertisement.
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