- Lithium prices pegged to conservatively triple within seven years
- Estimated resource of more than 1.2 million tons of spodumene-bearing (lithium) pegmatite
- Announced results of 3-D model suggesting substantially greater lithium reserves
Lithium prices have more than tripled since 2015 and are showing no signs of slowing, given the globe’s increasing reliance on the portable power provided by lithium ion (Li-ion) batteries. Goldman Sachs has conservatively projected lithium demand to triple again within the next seven years. The projected surge in demand is based on broad ranging increases in consumer uses and the global advent of electric vehicles. Moreover, the estimates may be vastly understated and could greatly increase beyond projections.
A Wall Street Journal article revealed what may become an even greater driver of demand. Multiple states and municipalities, in conjunction with utilities, are revamping entire electric grids and utilizing high-density Li-ion energy storage batteries to power homes and make the grid more efficient (http://nnw.fm/TQw8d). To avoid purchasing expensive peak-demand electricity, utility companies now store energy in neighborhood Li-ion battery junction boxes during off-peak and use it during high demand. The largest home energy storage project in the country is underway in Arizona, where Mandalay Homes plans to build 4,000 ultra-energy-efficient homes equipped with eight kilowatt-hour Li-ion batteries. In Vermont, Green Mountain Power has offered homeowners a Tesla Powerwall for $15 a month. The 13.5 kilowatt-hour batteries are engaged when the electrical grid is strained to maximum capacity, preserving the grid and saving the utility company money. Modernization of the nation’s electric grid could easily drive the need for lithium far beyond current projections.
Understanding the potential for exponential returns in the lithium arena, some seasoned investors are looking past the traditional large-scale lithium producers and focusing on junior miners and exploration companies that have large prospective assets and proven management teams with the ability to deliver valuable lithium assets to market.
In the business of acquisition, exploration and development of natural resource properties, QMC Quantum Minerals Corp. (TSX.V: QMC) (FSE: 3LQ) (OTC: QMCQF) is showing all the signs of having just such a large upside potential. QMC is focused on creating shareholder value through strategic acquisition and development of high-quality lithium, silver, gold, nickel, copper and zinc prospects. The company’s current properties located in Manitoba, Canada, include the Irgon Lithium Mine Project and two VMS properties, the Rocky Lake and Rocky Namew, which are collectively known as the Namew Lake District Project.
The Irgon Lithium Mine Project contains a rare-metal (Li-Ta-Cs) deposit within the Irgon pegmatite located immediately north of Cat Lake Manitoba. Substantial developmental work was carried out by the former owner of the property, and the deposit contains an estimated resource of more than 1.2 million tons of spodumene-bearing pegmatite grading 1.5 percent Li2O.
QMC recently announced that North Face Software Ltd. completed compilation of all historical data derived from past drilling and underground work, and imported the data into an interactive three-dimensional Leapfrog™ model of the Irgon Dike (http://nnw.fm/0HqNP). The Irgon Dike is located at the company’s 100 percent owned Irgon Lithium Mine Project, within the prolific Cat Lake Winnipeg River Pegmatite Field. The 3-D model clearly demonstrated that, to date, exploration and underground development has only been undertaken on the central portion of dike, leaving significant potential to quickly increase tonnage as the Irgon Dike is open both along strike and to depth.
An upcoming drilling program will confirm extensions to the strike length of the Irgon Dike and test mineralization to depth below the current level of historical drilling within the dike, both of which will rapidly increase the resource tonnage above the currently reported historical tonnage of 1.2 million tons (non-NI43-101 compliant). Lithium resource tonnage above the 1.2 million tons reported to be on site would be great news for the company and its shareholders.
For more information, visit the company’s website at www.QMCMinerals.com
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