LTH - Lithium Ionic Corp - The Western Hemisphere’s Next Significant Lithium Producer?
(NewsDirect)
By Jeremy Golden, Benzinga
As one of the largestemitters of greenhouse gases in the global economy, thetransportation sector is under heightened scrutiny. Experts arewelcoming the transition from the more than 1.3billion internal combustion engine vehicles currently on theroad to electric vehicles (EVs), thelargest source of demand for lithium .
Essential to theproduction of lithium-ion batteries, lithium demand is expected toquadruple by 2030, making it a critical mineral that is fueling thegreen revolution.
A mining company committed to the global energy transition isdeveloping a nuanced, commercial-grade lithium operation economicallyand sustainably to support the EV and battery supply chains.
Lithium IonicCorp. (OTCMKTS: LTHCF) is developing lithium properties in Brazilwith the goal of extracting lithium in the near future. Located inMinas Gerais state in Brazil, Lithium Ionic’s properties span 14,182hectares, or more than 35,044 acres, in this prolific lithiumprovince.
Last month, Lithium Ionicpublished results that support a long-life and low-cost spodumeneconcentrate mining project with a post-tax net present value of $1.6billion. In comparison, the company’s market capitalization is about$140 million.
Bandeira Project – Granted PriorityStatus
Since LithiumIonic launched in May 2022, the company reports that itsportfolio of properties has increased more than tenfold as itcontinues to assess prospective properties in this globallysignificant hard rock lithium district. Currently, the company isfocused on advancing its flagship Bandeira Project toward a productiondecision.
TheItinga basin, also known as Brazil’s “Lithium Valley,” issituated within the Eastern Brazilian Pegmatite Province, the largestlithium pegmatite province in South America . Experts view itas one of the most significant emerging lithium spodumene basinsglobally. The region boasts excellent infrastructure, includinghighway access, hydro-electrical grid power, water and nearbycommercial ports.
In July 2023, Lithium Ionic’s projects were granted prioritystatus by the state of Minas Gerais regional government bodies,facilitating the acceleration of approvals and licensing through thedevelopment process and paving the way toward mine operation andproduction. Construction permits are expected to be obtained bymid-2024.
Lastmonth , Lithium Ionic’s 100%-owned Brazilian subsidiary,MGLIT Empreendimentos Ltda, entered into an agreement with CemigDistribuição S.A., the largest electricity distributor in Brazil.With access to Cemig’s low-cost renewable hydroelectric power,Lithium Ionic will be prepared to fast-track Bandeira towardproduction by utilizing its existing power grid.
In October 2023, LithiumIonic reported an updated mineral resource and Preliminary EconomicStudy. The company reported that the numbers support projections thatthe Bandeira Project can be a highly profitable operation. Sincereporting robust project economics, Lithium Ionic has announcedmultiple sets of drilling results that demonstrate the quality of thesystem and the project’s growth potential.
Following the positiveresults from its 50,000-metre drill program, Lithium Ionicsays it is rapidly advancing Bandeira, its flagship project, toward aproduction decision. While it continues to explore other regionaltargets, permitting activities are progressing and the projectengineering is advancing.
The Bandeira Project is in the same district whereCompanhia Brasileira de Litio’s Cachoeira mine has been producinglithium for more than 30 years. Nearby, Sigma Lithium operates thelargest hard rock lithium deposit in the Americas through its Grota doCirillo project. Drilling next to a multi-billion dollar lithiumproducer will allow Lithium Ionic to mirror this development bycontinuing to advance Bandeira.
Lithium Ionic reports that Bandeira has deliveredan 84% resource growth rate in less than four months, demonstratingits upside potential.
“The growth trajectory of this deposit since we begandrilling it in April 2022 is a testament to its significance withinour large portfolio of properties in this belt and will continue to bea key driver of our success,” said Lithium Ionic CEO Blake Hylands.“Bandeira represents just a fraction of our land holdings, and ourteam strongly believes that our success at this property could bereplicated at our other properties in the region with the sameeffort.”
This Canadian company isadvancing its lithium projects in Brazil’s mining-friendlyjurisdiction which is quickly emerging as a world-class hard-rocklithium district. Follow its progress by visiting lithiumionic.com .
Lithium Ionic is a Canadian mining company focused on becomingthe next significant Brazilian lithium producer. Our properties arelocated in Brazil’s Minas Gerais state, a mining-friendlyjurisdiction that is quickly emerging as a world-class hard-rocklithium-producing district. A recent PEA for the Bandeira Projectindicates a long-life, low-cost, and highly profitable project with aPost-tax NPV8% of US$1.6B (~C$2.2B) and IRR of 121%. Our goal is togenerate significant returns for our stakeholders by becoming thecountry's next producer of high-quality spodumene concentrate forthe global lithium supply chain.
This post contains sponsoredcontent. This content is for informational purposes only and is notintended to be investing advice.
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