NILIF - Expert Says Lithium-Brine Stock on Course to New Highs | Benzinga
Source: Clive Maund 06/17/2024
Technical Analyst Clive Maund shares why he believes American Salars Lithium Inc. is a Strong Buy, including the recent news that it acquired a new project.
American Salars Lithium Inc. (OTC: ASALF) is a lithium exploration company whose stock is viewed as a Strong Buy here for both fundamental and technical reasons.
First we will consider the fundamentals of the company before proceeding to review its latest stock chart.
The first point to make is a general one concerning the outlook for lithium itself. As you may recall, after a massive speculative runup in 2020 and especially in 2021, the lithium price fell victim to a severe bear market that ran from mid-2022 through the end of 2023, as we can see on the following 5-year chart. By the end of last year, this bear market had exhausted itself, and a basing process began that has continued up to the present.
Chart courtesy of tradingeconomics
The chart implies that perhaps after some further basing action, lithium prices will start higher again in a new bull market.
Turning now to the particulars of the company itself, American Salars has a range of projects in Argentina, Canada, and the U.S. Its flagship project is the 3000 Hectare Candela II Salar project in Argentina, which features a National Instrument 43-101 inferred resource of 457,000 tonnes of lithium carbonate that is open for expansion.
Other projects include the Blackrock South lithium brine project in Nevada, located just 72 miles north of the Tesla Gigafactory. The company also has a highly prospective portfolio of projects in British Columbia and Quebec, Canada.
The Incahuasi Salar Project, which is easily accessible by road, is located in the province of Salta in northwestern Argentina, and it supports conditions for quality lithium mines at depth. The region has been substantially explored and it has been found that the lithium brines are close to the surface. The following picture from the company's website gives some general information about the project.
The following excerpt, also from the company website, sets out some highlights of the project.
This photo shows drilling in progress at the Incahuasi Salar.
Turning now to the company's other projects, which are all in the exploration stage, we will start by looking briefly at the prospective Black Rock South property in Nevada.
This picture shows the location of the project in NW Nevada and its proximity to the Tesla Gigafactory, an obvious large nearby market for the lithium extracted by the company.
At the Black Rock South property, the recent mineral exploration on the Galt claim group under option to Surge Battery Metals Inc. (OTC: NILIF) located 11 Miles to the South includes 51 playa sediment samples collected for chemical analysis at ALS Geochemistry in Vancouver, B.C.
Results of aqua regia leaching of the samples show 68 ...