Updated August 21st, 2010.
Next Bull: Lithium. May, 2010
James Dines on Gold, Rare Eraths and Uranium with Jim Paplava. Feb. 2010
With Obama scheduled to visit electric car plant, we need to be up to speed with our investment ideas in Lithium - place is getting attention and bargains will be gone soon.
In our continued quest for the next Tenke Mining we would like to share with thinking universe few research ideas. We will not cover things which are already on the radar screens like SQM and coming from auto and battery Lithium-ion technology angles. We will continue our approach of technology play from material side needed for this advance.
First of all we will refer you to our Lithium: Dragon CS secret of trade.
Then we suggest you to study Lithium. And if here our respectable guest will lose focus, patience and leave us we will be only happy.
Our investment approach requires patience, devotion and home work. The better student you are, the better chances of your success. This blog is only our diary reflecting our ideas and their on-line development. Few were spot on the money, but read, as always, fine print and our legal disclaimer.
"Given the rapid penetration of high-powered portable devices, efficient hybrid motor vehicles, and the increasing prominence of lithium ion batteries as green energy alternatives in our daily lives, lithium is emerging as the highly sought-after commodity of the 21st century." President Gary Schellenberg adds, "We are pleased to add these properties in order to diversify the TNR portfolio as it aligns with our philosophy to be at the forefront of developing resources for the incoming demand of sustainable energy solutions. These acquisitions are the first of many progressive steps in establishing ourselves as a prominent Lithium and REE explorer."
This is from yesterday NR of TNR Gold TNR.v. We put it first because we are holding a substantial position, following the company and like what we see recently.
You can find our coverage of TNR Gold TNR.v here in order to get a full picture with all ups and downs. We do not encourage you to Buy or Sell this stock as always in any way. All material is for education purpose only. We are blessed to keep our head above the water and still making money with our ideas, this blog will become a book at one stage and basis for PhD for couple of guys - you are always welcome to follow our research.
There are just few Junior Lithium plays now. Few of them are covered with good investigation and sense of humour here. What is the difference? Both Western Lithium WLC.v and Canada Lithium LCQ.v are already established lithium plays with market valuation for known Lithium resources. WLC.v benefits from solid cash position, CLQ.v is very low on cash, both companies have some issues which should be investigated further.
The difference with newcomer into the field TNR Gold is that company in our opinion is still below value of all its other properties and only now market started to recognise some value in it. TNR.v will need to finance itself to keep running as well, but announced in corporate update strategy of J/V of its properties will keep hopefully dilution to minimum of running G&A costs shifting major expenses of advancing properties to its partners.
From this idea we know what to watch further:
1. Company has survived the crisis, management has got vote of confidence from insiders and received financing early this year.
2. Management has delivered new promising properties in an upcoming commodity sector: Lithium, Geopolitical risk has dramatically shifted as well with addition of two Lithium projects in Ontario, Canada.
3. Keep in mind that its Lithium properties are without any known resources, but with historical exploration programmes and historical grade indication is in line with producing mines. It is effectively call without time decay on Lithium resource discovery and confirmation according to 43-101.
4. Management is talking about "first of many steps" - this is interesting to see in dynamic.
5. Do not count on any of the above and watch the price action. It is a very strange situation: company is under 10 mil cap, but among its assets apart from recently acquired Lithium projects are:
A. Los Azules North half of the deposit 25% back in right in dispute with Xstrata about its 36 months restriction. Escorpio IV property adjacent to Los Azules, TNR Gold initiated a law suit to confirm its back in right without any restrictions and its ownership title for Escorpio IV.
B. El Salto: The company successfully completed a 12-hole drill program totaling 6446.45 metres. Seven drill holes in the northwestern portion of the property intersected significantly anomalous copper and molybdenum mineralization over relatively large widths including 55.35 metres of 0.205% copper and 0.012% molybdenum. These results suggest the existence of a large porphyry system with copper-molybdenum mineralization.El Salto is workable year round due to its favorable elevation of 1,600 metres, proximity to the town of Calingastas, and has access to water source (nearby river) as well as power. TNR owns 100% of El Salto's 3,300 hectares in the province of San Juan, one of the most mining friendly areas in Argentina. The area is famous for the "Yellow Belt" porphyry copper molybdenum system.
C. El Tapau: A 1958.70 metre 7-hole drill program tested 3 distinct geological targets. The company is very encouraged by these results from its first reconnaissance drill program. It has extended the prospective copper-gold breccia zone to over a 4.5-kilometre strike length with the intersection of 82.25 metres of 0.49% copper located approximately 4.5km away from the past producing San Francisco mine. In addition all four holes targeted in the gold zone intersected precious-metal-bearing structures similar to those sampled on surface including an intersection of 0.75 metre of 9.15 gram/tonne Au.
D. Alaska properties: Following our tradition of identifying early projects, TNR is pleased to announce that on September 17, 2008 BHP Billiton transferred its ownership in the Iliamna project to TNR. Iliamna is an early stage property that is situated less than 100 kilometers from Northern Dynasty and Anglo-Gold's Pebble deposit. A $75,000 geochemical sampling program has been completed and all data has been received with results from the program to be released shortly.During 2008 TNR incorporated Bristol Exploration Co. Inc. ("Bristol") in the State of Alaska to hold 100% of its Alaskan properties. This restructuring will give TNR more flexibility in advancing these assets.
Any progress will be subject to J/V announcement, new Lithium dynamic and financing at the reasonable level.
Another reason to please our contrarian soul in this business case is that nobody loves Juniors any more particularly in exploration space, it reminds us our situation with Tenke Mining at 0.6CAD in 2003, situation was different, but so close: huge confirmed reserves of Copper and Cobalt in Congo and total lack of confidence in the country.
Now we have totally scared investors, Majors are in Debts to the eye balls and are selling properties, shelving deposits and closing mines. According to Sir Warren Buffet - time is to buy the precious staff and help is on the way: Ben and Tim who must be devoted readers of this blog are trashing the dollar as there is no tomorrow according to our suggestion and after our Crash Alert.