A prominent theme on the TSX Exchanges that last few weeks is a sudden interest in all penny stocks with the word "lithium", attached to them. Canada Lithium, Western Lithium and Lithium One are a few that come to mind but that I am not invested in. Some easy doubles there if you caught the first wave. Why lithium ? There is tons of it around the world, but less that is economic and even less that is not able to be processed through a procedure known as "brine roll out" which is much more cost effective than typical hard rock mining. The other part of the equation is some deposits discovered contain high levels of manganese which is a viable product, but increases production costs. As you are mostly aware we need lithium for not only cell phones and lap top batteries but for of course,the electric car.
In the next 5-10 years there will be a serious demand for this mineral like never before, a five fold increase according to Mitsibushi. Chile, Argentina as well as the Chinese and the Russians have a shit load of this stuff, but the clincher is Obama's desire for America to be self sufficient and not be at the mercy of the foreigners, just as he is with oil dependency. Also Obama just put out $2.5 Billion for grants on improving on the lithium battery efficiency and new developments.
When you consider there is only one lithium mine in all of North America down in Nevada, then a large ramp up in new exploration plays in Canada and the US looking for the next economic deposit will make for some serious cash generating opportunity. I will be keeping an eye out for the undiscovered lithium gems the market is sure to invest in. But as in most gold rush type plays, the trick will be seperating the men from the boys. More in another post on that subject. Stay tuned !
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