The Nevada lithium juniors we’ve discovered have sparked much investor interest of late
SmallCapPower | October 7, 2020: Tesla’s plan to build a cathode plant in North America and its acquisition of a 10,000-acre lithium clay deposit in Nevada has brought “focus” to junior lithium stocks with clay deposits in Nevada, as they are now prime targets of Tesla and other EV/battery manufacturers, according to a recent research note from Fundamental Research analyst Sid Rajeev. Today we have dug up three Nevada lithium juniors that fit that mold and are attracting much attention from investors of late.
*Returns are based on closing stock prices as of October 6, 2020
Noram Ventures Inc. (TSXV:NRM) – $0.18
Noram Ventures is developing its flagship Zeus lithium claystone property in Nevada’s Clayton Valley. Zeus, which is comprised of 1,214 hectares, is within two kilometers of Albemarle Corporation’s lithium brine producing operations (Silver Peak Mine). Mr. Rajeev currently has a “Buy” rating on Noram stock, with a $0.20 per share target price, estimating that NRM trades at just US$8 per tonne compared with its junior lithium peers, which trade at an average of US$19 per tonne.
- Year-to-Date Return: 100%
Cypress Development Corp. (TSXV:CYP) – $0.65
Cypress Development is developing its 100%-owned Clayton Valley Project in Nevada, a lithium-bearing claystone deposit adjacent to the Albemarle Silver Peak mine. On August 11, 2020, Cypress announced an updated Measured & Indicated resource estimate for Clayton Valley, which showed a 55% increase in contained lithium to 987,235 tonnes. This is in addition to a Prefeasibility Study (PFS) released in May 2020, which estimated Probable Reserves of 222 Mt of 1,141 pm Li, with expected average annual production of 27,400 tonnes of lithium carbonate equivalent (LCE) over an annual mine life of more than 40 years. Mr. Rajeev says CYP trades at US$8 per tonne, the same as Noram.
- Year-to-Date Return: 251%
American Lithium Corp. (TSXV:LI) – $1.37
American Lithium is currently exploring and developing the TLC project located in the Esmeralda lithium district in Nevada, about 3.5 hours south of the Tesla Gigafactory. TLC has a Measured & Indicated resource of 5.37 Mt LCE along with 1.76 Mt in the Inferred category. American Lithium is also developing its own lithium sedimentary mineralization separation technology. Mr. Rajeev estimates that LI trades at US$16 per tonne.
- Year-to-Date Return: 954%
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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