The Hunt for Lithium Resources Has China Looking in Dumpsters in an Effort to Offset Demand - Seite 3

Cat Lake is located in Manitoba just 20km from the world class Tanco Mine Property, previously North America's largest and sole producer of spodumene (Li), tantalite (Ta) and pollucite (Cs) rare minerals.

As a mineral region, Manitoba is now ranked 2^nd amongst all global mining districts for its competitive tax regimes, efficient permitting procedures and surrounding environmental regulations / land-claims where miners look to invest.

Between 1953-1954 the Lithium Corporation of Canada Limited drilled 25 holes into the Cat  Lake property's Irgon Dike and reported a historical resource estimate of 1.2 million tonnes (metric) grading 1.51% Li20 over a strike length of 365 meters and to a depth of 213 meters.

QMC's geological team believes the historical drill result is accurate and considered a substantial lithium with excellent grades for production.

The company is in a detailed drill program that is returning the updated results of the total potential lithium resources at its Cat Lake Property.

BATTERY POWER FORCING ALL SOLUTIONS 

China's recycling efforts are certainly paying off.

Companies like Jiangxi Ganfeng Lithium and Gem Co. Ltd are already enjoying the fruits, with the latter for example experiencing a 60% jump in its share price since January. Jiangxi Ganfeng's share price growth has been even more phenomenal, rising over 200% this year alone.

Still, there remains large gaps in recycling and related innovation for new companies to fill. "Urban" mining of lithium remains prohibitively expensive and therefore profit margins are not much better than ore-based mining of the metal. Various solutions and developments such as automation and industry stakeholder cooperation promise to bring down recycling costs, paving the way for a more sustainable approach to lithium recycling.

With the mandate set by leaders like BMW, Volkswagen, Ford and Tesla to create massive electric vehicle fleets, the demand increase for lithium is imminent. The industry will need to look to new avenues, like recycling, and new companies, like QMC Quantum Minerals, to fill the widening gap.

POTENTIAL COMPARABLES 

FMC (NYSE: FMC)

FMC Corp. is a Philadelphia-based chemical company which is swiftly ramping up its lithium production. Last year, FMC said it was planning to triple lithium hydroxide production capacity by 2019. The first phase of the plan has already started. FMC management also said that it was not ruling out the possibility to spin-off FMC's lithium segment as a separate publicly owned company. BofAMerrill Lynch recently upgraded FMC stock to "Buy" from "Underperform," increasing the price target to $103.00 from $66.