Tom Lewis, Chairman and CEO of Lithium Corporation (OTCBB:
LTUM), a junior mining company focused on creating shareholder
value through the discovery and development of lithium, graphite,
and related mineral resources is pleased to provide an update on
the Company’s progress and recent developments.
We have reached the halfway point of 2013, a challenging year
for most junior mining companies. Yet, while most mining companies
in the lithium and graphite space are facing severe challenges due
to conditions involving lack of funds, political issues (South
America), delays and/or expenses related to permitting, LTUM is
using this time to expand our portfolio of projects and delineate
Fish Lake Valley, our premier lithium property. We are also very
excited to report our entry into the exploration and development of
graphite with our recent acquisitions of graphite properties in
2013.
As CEO of Lithium Corporation, I would like to describe our
progress and recent developments. The mining industry is currently
knee-deep in a cyclical trough, not unlike what any industry
experiences from time to time. As we wait for a recovery, we are
using this time to identify new properties and expand on the
properties already in our portfolio. We differ from many other
junior exploration mining companies in that our balance sheet is
strong, allowing Lithium Corporation to identify, analyze and act
upon opportunities. Moving forward, our goal is to position the
Company to create value that should ultimately lead to a much
higher stock price.
THE INDUSTRY
THE IMPORTANCE OF LITHIUM: As most of you know, lithium
is used in a variety of applications, such as ceramics, glass,
lubricating greases, metallurgy, and electronics to name a few.
Lithium-ion batteries, due to their high charge capability, lighter
weight and recharging ability, have become a vital element in the
increasing demand for electronic devices and, recently, electric
cars.
PROJECTED GROWTH OF LITHIUM: Although the overall demand
for lithium has been relatively steady over the past few years,
demand for lithium used in lithium-ion batteries is predicted to
grow 10-25% per year. Growth in the last few years is due primarily
to the continued high worldwide demand in handheld computers,
tablets, cell phones, and other electronic devices that use
lithium-ion batteries. We believe the demand will accelerate once
the electric car market takes stride. Based on some new estimates,
we should begin to see a lift in demand by the end of this year,
with a strong build for several years to come.
To date, the production of lithium worldwide has been ample to
meet demand. Most production comes from mines in China, Argentina,
Bolivia, Chile and Australia. Currently, there is only one lithium
production facility in North America located at Silver Peak,
Nevada, approximately 20 miles from Fish Lake Valley. Over the next
2-5 years, additional production facilities are expected to come on
line, which could meet near-term demand. Although it is difficult
to predict longer term, some prognosticators anticipate that demand
for lithium could out strip production by the year 2020, creating a
possible shortage of lithium.
ELECTRIC CARS: In 2007 oil prices hovered around $140 per
barrel, pushing gasoline prices to record levels around the world.
This led to the “green” movement and a focus on producing
automobiles less reliant on fossil fuels. Many predictions included
an increasing demand for hybrid and all-electric cars, leading to a
high demand for lithium-ion batteries and ultimately concerns that
there could be a shortage of lithium by 2012. Unfortunately, these
predictions did not hold true, as the worldwide recession softened
the demand, and oil prices dropped to more affordable levels.
We are now seeing new demand for electric vehicles, as witnessed
by the surprisingly good results at Tesla Motors. If you happen to
have a Tesla store nearby, I encourage you to stop by for a
visit.
OUR HOLDINGS
LITHIUM:
Fish Lake Valley Property: At the Company’s flagship Fish
Lake Valley property, a lithium/boron/potassium anomaly has been
discovered using near-surface auger sampling, and more recently by
sonic drilling. The drilling programs have outlined a lithium
anomaly of 450 meters by 750 meters, which is not yet fully
delimited. Lithium values in this zone averaged 47.05 mg/L, ranging
from 7.6 up to 151.3 mg/L. In addition, our most recent drilling
program delineated boron and potassium values averaging 992.7 mg/L
and 0.535% respectively.
This concentration of lithium-in-brine is comparable to the
grade of the deposit currently being exploited at the Silver Peak
operation, located nearby in Clayton Valley. Silver Peak is
currently the only lithium-in-brine operation in North America.
Silver Peak is owned by Rockwood Holdings and has been in operation
since 1965.
Lithium Corporation currently has 40 claims covering 3,200
acres. This includes an additional four strategic claims that were
acquired in January, 2013, totaling an additional 320 acres. The
Fish Lake Valley claims are federal unpatented mining claims, with
no underlying royalties. The Company’s drilling contractor has
indicated that there is a window of availability in late July, and
we anticipate operations to recommence at this point.
San Emidio Property: The Company’s San Emidio property is
located in Washoe County, Nevada and comprises 20 claims totaling
1,600 acres. Our 2011 drilling program identified lithium values as
high as 84 mg/L, along with high calcium and potassium values, and
moderate boron and magnesium values. Additional drilling programs
are scheduled in 2013.
GRAPHITE:
BC Sugar Property: In June, 2013, we acquired the BC
Sugar property. BC Sugar is located in the Shuswap area in British
Columbia, Canada, and totals 5,031.97 acres (2036.366 hectares).
Some graphitic rocks have been known to occur in the general area
previously, but the Sugar Lake discovery is a new occurrence of
flake graphite in quartz, biotite mica gneiss, marbles, and also in
calc-silicate gneissic rocks in this locale. The host rocks at BC
Sugar are similar to the host rocks in the area of the Crystal
Graphite deposit, which is approximately 55 miles (90 kilometers)
southeast of the project area.
We have mobilized a crew to the BC Sugar property where work is
presently ongoing. Although it is somewhat premature, we are very
excited about the potential of BC Sugar as some of the early
findings have identified high quality natural large flake graphite,
also known as “battery” grade graphite.
Mt Heimdal Property: The Mt Heimdal property is
comprised of three (3) mineral claims, which encompass 2,582 acres
(1,045 hectares) of highly metamorphosed rock. The property is
roughly six miles (10 kms) South of Eagle Graphite Corporation’s
Black Crystal quarry, and is located within the same rock sequence
of gneiss, graphite mineralized marble, and graphitic calc-silicate
gneiss. Data from BC Geological Survey assessment reports indicate
that mineralization grading up to 4.8% graphitic carbon may be
located on the property. Preliminary work is now complete on the
eastern areas of the property, where graphitic rocks were
encountered. The company is presently waiting on analytical results
from this work phase.
WHY GRAPHITE? Over the last few months, we have had a few
enquiries wondering why we are expanding into graphite properties.
High purity graphite is presently the most widely used anode
material for lithium ion battery technology. Typically, greater
than ten times more graphite than lithium is used in lithium ion
battery production. In addition to increased graphite consumption
due to growth in lithium-ion batteries sales, carbon fiber
composites are increasingly being utilized in auto, and aircraft
construction, which requires graphite material. Also, there is
considerable ongoing research into graphene, a flake graphite
product, and it is possible a myriad of new applications or uses of
graphite will ensue as a direct result of this work.
CORPORATE DEVELOPMENTS
BALANCE SHEET: We are pleased to confirm to our
shareholders that we have ample funds to continue to identify and
acquire lithium and graphite properties and cover any general and
administrative expenses over the near term. This is extremely
important, as we are not dependent on dilutive additional funding
when our stock price is hovering at today’s low levels. At some
point in the future, we will require additional funds to advance
our premier properties toward post exploration and development
stages. We hope this can be accomplished when our stock price is
much higher allowing for limited future dilution.
As of June 30, 2013, Lithium Corporation has a cash balance of
approximately $1,025,000 and zero debt. Our accounts payable
approximates $22,000, of which a majority will be paid within the
first two weeks of July. We have doubled the number of properties
and expanded our position at Fish Lake Valley within our asset
portfolio since the end of the 2012. Our recent graphite
acquisitions were negotiated at very reasonable prices well below
what we believe they are worth. We hope to add additional lithium
and graphite properties as opportunities arise due to weakened
market conditions. This should ultimately strengthen our balance
sheet even further.
We pride ourselves on not spending our precious funds on
excessive and needless expenses. We don’t pay executive salaries
and our general and administrative expenses are minimal. Other than
exploration costs, our highest expenses are related to legal and
accounting, which are required for all public companies. As CEO, I
spend a good portion of my time in the field looking for new
exploration opportunities and expanding the ones we already
hold.
ALTURA RELATIONSHIP: In November, 2012, we announced a
strategic relationship with Altura Mining Limited (Altura, ASX -
AJM). Altura is an Australian-based company engaged in exploration
for coal, iron ore, lithium and other minerals on its tenements
located in Australia and Indonesia.
Altura’s Pilgangoora lithium project, located in the Pilbara
region of Western Australia has been identified as a world class
high grade hard rock lithium project. The project has been
significantly increased in size in the last 12 months, and positive
project development scoping studies are progressing. Altura also
has a one-third interest in the operating 1.5mtpa Delta Coal mine in Indonesia, and is progressing
its Tabalong coal project in South Kalimantan to final
approvals stage. Altura’s 30% interest in the Mt Webber iron
ore project (joint venture with Atlas Iron Limited – ASX: AGO)
in the Pilbara region of Western Australia is planned to commence
production in early 2014 at an initial production rate of 3
Mtpa.
Altura’s investment in Lithium Corporation provides Altura an
initial toehold in the North American mining and exploration
market. We highly value our relationship with Altura and their
wealth of knowledge and experience, and look forward to a much
stronger relationship in the years to come.
CONCLUSION
Lastly, I know it has been difficult to watch our stock price
languish at such low levels. As one of the largest shareholders of
the company, it is frustrating to witness the lack of interest in
Lithium Corporation and mining stocks in general. Almost daily, we
receive calls from investment relations (IR) firms who prey on
companies faced with a low stock price and disappointed
shareholders. Although it is tempting to hire an IR firm to create
exposure to our stock, we do not believe such action will create
value in the long term due to the current low interest in mining
companies, particularly lithium and graphite exploration
companies.
I encourage shareholders to visit our website for updates on our
progress. For further information please contact Andy Dewey at
Lithium Corporation at (775) 410-2206 or via email at
info@lithiumcorporation.com. We appreciate our shareholder’s trust
and patience during these trying times.
Thank You
Tom LewisChairman and CEO: Lithium Corporation
About Lithium Corporation
Lithium Corporation is an exploration company based in Nevada
devoted to the exploration for new lithium resources within the
Great Basin. The Company explores and develops potentially economic
lithium-enriched brine fields, with an eye to becoming a long-term
producer of this increasingly strategic and economically important
commodity. In keeping with its focus on producing materials for
lithium ion battery manufacture, the Company now currently has two
active graphite prospects in BC – the Mount Heimdal prospect &
the BC Sugar property, and anticipates working on both this
summer.
Notice Regarding Forward-Looking Statements
This current report contains "forward-looking statements," as
that term is defined in Section 27A of the United States Securities
Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
Statements in this press release which are not purely historical
are forward-looking statements and include any statements regarding
beliefs, plans, expectations or intentions regarding the future,
including but not limited to, any mineralization, exploration and
development of our mineral properties, specifically in regards to
any future drilling programs.
Actual results could differ from those projected in any
forward-looking statements due to numerous factors. Such factors
include, among others, the inherent uncertainties associated with
mineral exploration and difficulties associated with obtaining
financing on acceptable terms. We are not in control of minerals
prices and these could vary to make development uneconomic. These
forward-looking statements are made as of the date of this news
release, and we assume no obligation to update the forward-looking
statements, or to update the reasons why actual results could
differ from those projected in the forward-looking statements.
Although we believe that the beliefs, plans, expectations and
intentions contained in this press release are reasonable, there
can be no assurance that such beliefs, plans, expectations or
intentions will prove to be accurate. Investors should consult all
of the information set forth herein and should also refer to the
risk factors disclosure outlined in our most recent annual report
for our last fiscal year, our quarterly reports, and other periodic
reports filed from time-to-time with the Securities and Exchange
Commission.
Lithium CorporationAndy Dewey,
775-410-2206info@lithiumcorporation.com.
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