Categories: Energy Stocks
Topics: Lithium Stocks

Largest Lithium Pegmatite Resource in the Americas

Presidential frontrunners getting indicted, fires, historic debt downgrades, etc. Plenty going on for what’s supposed to be the summer doldrums.

All that aside, the resource space is also providing plenty of important news for those paying attention. Consequential news that I believe sets the pace for the rest of the year.

In the battery metals space it’s clear that major mining companies, chemical companies, and automakers are scrambling to secure future supply of the critical battery metals.

That point was underscored in the lithium space this past week with news from lithium giant Albemarle when it announced that it is making a strategic investment in none other than a favorite of the portfolio, Patriot Battery Metals (TSX-V: PMET)(OTC: PMETF).

The $109 million is great and in the words of CEO Blair Way it will allow the company – which now has over $155 million in the treasury –  to “more aggressively advance the Corvette Property through drilling, permitting, study work and more.”

The “and more’’ part is interesting to me. 

Alexander Thompson, VP Lithium Resources at Albemarle, chimed in saying: 

“We look forward to collaborating with Patriot to better understand the Corvette property and the opportunities this project represents for the North American battery materials supply chain.”

The announcement came right on the heels of Patriot announcing the largest lithium pegmatite mineral resource in the Americas and the 8th largest globally with 109.2 million tonnes at 1.42% lithium oxide (Li2O) and 160 parts per million tantalum pentoxide (Ta2O5) inferred. 

Mind you, this is the maiden MRE that is but a sneak peek of what will ultimately be unearthed at the Corvette district. This maiden MRE includes only the CV5 Spodumene Pegmatite and does not include any of the other known spodumene pegmatite clusters on the Property – CV4, CV8, CV9, CV10, CV12, and CV13.

Consider this: it took just $45 million to prove up the 8th largest lithium pegmatite resource globally and the largest in North America. The company is sitting on three times that amount and is back in the field with drills turning and teams exploring for more. And, oh yeah, CV5 is also open at both ends, along strike and to depth.

Back to the Albemarle deal. I found it intriguing that the deal included an MOU with Albemarle to assess partnership opportunities to study the viability of a downstream lithium hydroxide plant integrated with the property and located in Canada or the United States, including options in the Province of Quebec. That MOU came with an exclusivity period for an initial nine months, which may be extended.

It’s summer time, shorts are playing with the stock, traders are impatient and flipping it. 

But be absolutely clear: it’s game on in the lithium space and Patriot is on the verge of a major rerating

Gerardo Del Real
Editor, Daily Profit Cycle