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TICKERS: LTH; LTHCF; H3N

Lithium Co. Expects Key Permit by Year-End
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Once this particular environmental license in received, the Canadian explorer may begin construction at its project in Brazil, noted a Desjardins Securities analyst.

Lithium Ionic Corp. (LTH:TSX.V; LTHCF:OTCQX; H3N:FSE) announced results of four holes from the ongoing drill program at its Bandeira project in Brazil, and among them was the thickest intercept encountered there so far, reported Desjardins Securities analyst Frederic Tremblay in an Oct. 8 research note.

"We view today's update positively as it reinforces the key reasons why we like Lithium Ionic," Tremblay wrote. They are the quality of the project, quick path to production, low costs, proximity to producers and infrastructure, and resource growth potential.

321% return potential

The analyst reiterated Desjardins' CA$3.75 per share price target on the Toronto, Ontario-based lithium explorer, currently trading at about CA$0.89 per share. The difference between these prices reflects a potential return for investors of 321%.

Lithium Ionic remains a Buy.

Thickest intercept returned

Tremblay reported and discussed the results of four Bandeira drill holes: ITDD-24-264, -265, -266 and -276. An intercept from hole ITDD-24-276 is the thickest intercept encountered via drilling thus far at Bandeira. Its grade is in line with the 1.35% grade of the existing mineral resource estimate. This highlight intercept is:

  • 64.7m of 1.39% lithium dioxide (Li2O), including 22m of 1.67% Li2O and 20m of 1.62% Li2O

Other intercepts returned in this batch of results include:

  • 7.03m of 0.9% Li2O, including 1.77m of 1.95% Li2O, from hole ITDD-24-264
  • 13.06m of 1.11% Li2O, including 5m of 1.51% Li2O and 9.72m of 1.28% Li2O, including 6m of 1.54% Li2O, from hole ITDD-24-266

On the horizon

Tremblay pointed out two upcoming catalysts for Lithium Ionic. One is the remaining drill results from Bandeira, for holes ITDD-24-267 through -275.

The other is receipt of the Licença Ambiental Concomitante, or LAC, expected by year-end. This environmental license will allow Lithium Ionic to begin construction at the project.

"In the meantime, [the company] is actively working on progressing the Bandeira project to the execution phase, including optimizing the project design to reduce capital and operating costs," Tremblay wrote.


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Important Disclosures:

  1. Lithium Ionic Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
  2. Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor/employee.
  3. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

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Disclosures for Desjardins Securities Inc., Lithium Ionic Corp., October 8, 2024:

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