First Lithium Minerals Corp. (FLM:CNSX) announced it has outlined priority drill targets at its 100%-owned OCA lithium project in the Antofagasta region of northern Chile and wants to start drilling in the second half of this year.
It will be the first brine resource exploration program in the northeastern property areas at the Salar de Ascotan which display promising geophysical characteristics based on transient electromagnetic (TEM) and magnetotelluric (MT) surveys in 2022 and early this year.
"We are very pleased to have completed the assessment work for priority drill targets which we believe show the hallmarks of hydrogeological conditions typical of brine deposits in northern Chile," Chief Executive Officer and Director Rob Saltsman said.
A salar is a salt-encrusted depression that could be the basin of an evaporated lake.
Needed for batteries crucial to the new green economy, the global lithium market is expected to reach US$19 billion by 2030, according to a report from Research and Markets.
"Rising investments in lithium mining and related technologies are projected to remain a key trend in the market," the report said. "Lithium mining is witnessing rapid growth as its demand is accelerating owing to its application in batteries."
The Catalyst: A Great Neighborhood
The 9,000-hectare project is in the "Lithium Triangle" of Argentina, Bolivia, and Chile, which have about 58% of the world's resources of the element.
The exploration program will have up to five boreholes of up to 500 meters, the company said. Brine sampling is planned at 12-meter intervals.
The Ollague, Carcote, and Ascotan salars correspond to continental saline deposits. Lithium (Li), potash (K), boron (B), sodiu (Na), and magnesium (Mg) are leached and accumulated and concentrated by evaporation in the salars, the company said.
The salars' groundwater also shows characteristics of a typical brine a few meters below the surface, First Lithium Minerals said.
MT results released earlier this year showed highly conductive horizontal zones of less than 1.0 Ohm-meter signatures, which are typically associated with brine mineralization in hydrogeologic settings across the Andean plateau, First Lithium Minerals said.
Preliminary modeling showed a gradually increasing brine signature at about 200 meters beneath the surface with widths up to 400 meters, reaching a base or bedrock at about 600 meters, the company said.
Highly conductive zones of less than 1.0 Ohm meter were also seen in the southeastern sectors of the Carcote prospects and the northeastern sectors of the Ascotan prospects.
"We believe the identified highly conductive zones are indicative of brine mineralization, suggesting the potential for future discoveries," Saltsman said.
A Surprise Presidential Announcement
Chile's leftist President Gabriel Boric announced in April future lithium contracts would be issued as public-private partnerships with state control, he said.
"This is the best chance we have at transitioning to a sustainable and developed economy. We can't afford to waste it," Boric said in a nationwide address.
Current contracts, like with the world's top lithium producers, Albemarle Corp. (ALB:NYSE) and SQM (SQM:NYSE), would not be terminated.
Saltsman said First Lithium welcome the partnership format, in which "environmental sustainability and social licensing play key roles."
"We believe our project fits the criteria and have engaged with related parties to explore opportunities of forming a potential partnership that can expedite the development of our project."
The company said drilling contingent upon receiving required government permits and licenses.
Metal Needed to Fuel Energy Transition
The world needs lithium and other critical elements like copper to help fuel the move to green energy. The soft, silvery metal with highly reactive and flammable properties is a major component of electric vehicle (EV) batteries. It’s also used to strengthen alloys, as a high-temperature lubricant, and as a drug to treat bipolar disorder.
The deficit between lithium demand and production and highly probable and probable lithium projects will be over 3.5 Mt by 2040, according to Benchmark Mineral Intelligence.
One out of five vehicles sold worldwide could be an EV in less than two years, and Ford and General Motors have set a goal of achieving 40–50% of their sales from EVs in the U.S. by 2030.
To qualify for tax credits under new U.S. laws, a significant percentage of batteries and minerals in batteries must come from the U.S. or Canada.
Streetwise Ownership Overview*
First Lithium Minerals Corp. (FLM:CNSX)
China only has less than a quarter of the world’s lithium resources but controlled about two-thirds of the world’s lithium processing and refining capacity in 2021, Rystad Energy said.
"Government regulations and subsidies are working on expanding clean energy," Research and Markets wrote. "Thus, energy storage systems represent a huge opportunity for investors."
Ownership and Share Structure
About 14% of First Lithium Minerals Corp. is owned by management and insiders, the rest is retail, the company said.
The company has a market cap of CA$6.95 million with 86.9 million shares outstanding. It trades in a 52-week range of CA$0.235 and CA$0.07.
Important Disclosures:
- First Lithium Minerals Corp. has a consulting relationship with Streetwise Reports and has paid a consulting fee between US$8,000 and US$20,000.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of First Lithium Minerals Corp.
- Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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