- Mineral known as ‘the new gasoline’ attractive to auto industry
- 92 Resources developing sites in Canada’s northwest, Quebec
The increasing drive among the world’s industrialized nations to find more environmentally friendly fuel sources is a boon to junior mining companies such as 92 Resources Corp. (TSX.V: NTY) (OTCQB: RGDCF) (FSE: R9G2) (http://dtn.fm/PRGj6), which are poised to help supply the global need for tech-friendly lithium.
Lithium has become an in-demand resource for the auto industry as manufacturers try to anticipate the consequences of recent political decisions favoring electric vehicles over their dominant gas-powered cousins (http://dtn.fm/z1zsD). In July, France and Britain joined the number of nations who have declared their intentions of prohibiting the sale of vehicles driven by fossil fuels, working against an established deadline to promote alternative means of transportation.
Electric vehicles powered by lithium and cobalt batteries have proven particularly attractive to markets within metropolitan areas, where gasoline’s advantages involving longer travel distances and established refueling networks are less critical. And automakers have taken notice, with many of them now committed to release a lineup of all-electric vehicles or hybrids with electrical plug-in capabilities during the coming years.
Lithium has also applications in technology that has become ubiquitous within the world’s societies during the past two decades, particularly mobile phones, tablets and laptops.
Independent energy producers have also begun to integrate industrial-sized battery systems into the power infrastructure.
Goldman Sachs referred to lithium as “the new gasoline,” but currently the surging demand is being met with an inadequate market supply, creating a lag-time in development and a rising trend in prices. During 2015, China’s import costs for 99 percent pure lithium carbonate doubled.
International mining and minerals researcher Roskill has estimated that in just over eight years, a potential shortfall of 26,000 metric tons could occur as industries call for more than 785,000 metric tons per year of lithium carbonate (http://dtn.fm/6RwCy).
92 Resources aims to capitalize on governments’ and industry leaders’ taste for lithium. The company has hard rock lithium extraction projects in Canada’s Northwest Territories as well as in Quebec.
A government grant enabled the company to begin work during the summer on the Northwest Territories Hidden Lake site, where scoping test work accomplished an overall extraction of 97 percent in lithium-bearing pegmatites (http://dtn.fm/Hr7LK).
“The Project has now been significantly de-risked through the high quality, low-iron spodumene confirmed to be present at Hidden Lake, as well as the high lithium extractions that may be expected using standard methods,” 92 Resources president and CEO Adrian Lamoureux stated in a related press release. The Quebec exploration includes 115 mineral claims of more than 114,000 acres with known large-crystal pegmatites outcroppings.
“As we continue to aggressively advance our flagship Hidden Lake Lithium Project, we feel it is critical to maintain a pipeline of additional high-quality, early-staged, lithium pegmatite projects, each with potential as stand-alone opportunities,” Lamoureux stated.
For more information, visit the company’s website at www.92Resources.com
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