Categories: Energy Stocks
Topics: Lithium Stocks

The Next Big Lithium Mining Stock

Publisher’s Note: We’ve been investing in the lithium space for the better part of a decade and have made multiple 10X and even 100X returns. Gerardo’s most recent big win was on Patriot Battery Metals, which he first got readers in at 16-cents ahead of it running to over $17.00 in two years. Many new millionaires were made. Below, we discuss what made Patriot successful and why Gerardo thinks he’s found his next big lithium winner. 

Enjoy,

— Nick

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Gerardo Del Real: I am just chomping at the bit to see the lithium space continue to develop and I think there's so many opportunities that are gonna make us a lot a lot of money if we're patient, if we're disciplined, and if we're a little lucky. 

It's been a good couple of years. We don’t get them all right. Nobody does. But the ones we've gotten correct have been big wins. Like Patriot Battery Metals, which has been life-changing for so many different people. Readers of mine who got in the earliest have made over 10,000%. 

You all continue to write in and I'm truly thankful for all the kind words.  And I wanted to let you know I think I have another one that has a lot of similarities to Patriot Battery Metals. It’s in the early stages. It’s about to be drilled. I think we're going to do incredibly well with this company. I'm looking for quadruple digit gains again with this one. 

Nick Hodge: Let's take a step back and just reiterate how much growth is occurring in the lithium market. And then if you don't mind, I might ask you a couple of questions about that new deposit you’re talking about — why it's similar, not only geologically, but as far as the team is concerned as well. 

In 2022, the world produced something like 600,000 tonnes of lithium, 678,000 tonnes to be specific. And this year it'll need 900,000 tonnes, but then by 2035 we're going to need 4 million tonnes. So by 2035 you're going to need, call it five times as much lithium as we're mining now. And you've seen just the absolute scramble for these companies to get involved, with global auto manufacturers partnering with lithium producers and lithium developers. 

And it’s worth noting how that's shifting west westwardly. China controls a lot of the refinement and purification of battery metals like lithium. And the bulk of that ore comes from hard rock assets in Australia, which are spodumene-based lithium pegmatites. And that's one of two main types of lithium extraction, the other one being brine.

At the same time, the Inflation Reduction Act is trying to incentivize not only lithium mining, but refining and upgrading as well. And we've talked a bit in the past about how the sector is going toward spodumene at this time. So, yes, Patriot Battery Metals has a huge discovery of this specific type of lithium in Quebec. Yes, they've already had some strategic buyers come in. The formal deal recently was with Albemarle, who can build a downstream plant in North America to satisfy the requirements of the Inflation Reduction Act to get those subsidies.

And it's obviously very expensive to bring that spodumene from Australia. So they're looking now for North American sources to consolidate the industry. With these new lithium deposits being found in North America, larger chemical companies can have their production here in North America and the refinement as well. So Patriot Battery, for as big of a deposit as it is and is going to be, we're still going to need a lot more lithium deposits. And that brings me to this other company that we were discussing. So let's start with the geology and then go to the team. Explain why it's similar in location and why it's similar in geology and why it could be potentially similar and grade and size.

Gerardo Del Real: I pride myself on being a simple guy. I often make high risk, high reward bets that are over leveraged. And when they pay off, they can be life changing. And when they don't, I take my losses like a big boy. We're big boys, big girls in the speculating game. But with that being said, when I looked at Patriot initially, what really attracted me to it was the fact that there was already historic sampling. The outcrops were high grade. You knew the intensity of the system was likely going to hold up because of how spread out those outcropping lithium pegmatite clusters were. It has scale, it has historic sampling, it consolidated the land package, it's in the right rocks, it's in the right belt, it has the outcrops, the outcrops are wide. That’s how we made over 10,000% gains when they drilled into it. And I think I'm about to get on to another quadruple digit winner. It's just a matter of seeing what Mother Nature left behind. Mother Nature's already whispering to us that she left behind a bounty. And I just want to see how big that bounty is. Drill should be turning this summer, and I want folks to know about this new lithium project by then.

Nick Hodge: You mentioned it's outcropping its surface. Last question, you said with Patriot these spodumene bearing pegmatites were outcropping its surface. And so they literally could see them from the helicopter and then just had to go drill them. That same type of pegmatites are outcropping at this other company but they have not yet drilled. And there were some wildfires in the area this summer that pushed exploration back. So what's the timeline look like now?

Gerardo Del Real: I'm hoping that within the next few weeks we have an announcement that says the drills are turning. And I've been in touch with the company as I'm in touch with all the companies that I invest in and recommend to my paying subscribers. The company is itching to get in the field again. The company is ready to be very aggressive with the drill bit. They have their targets already prioritized. They have drill contractors waiting. It's just a matter of getting the okay from the government. And once we start seeing results this fall, I want at least 1,000% return on my initial capital from this investment. 

Nick Hodge: We have a new report out about that company you can see here.

Nick Hodge
Publisher, Daily Profit Cycle