The recently concluded PDAC attracted over 1,000 exhibitors and 24,000 attendees from 130 countries met at the Metro Toronto Convention Center in Toronto Canada.
Higher metal prices have lifted the mood of expectation at the 4-day event. Even though most peers were there, many Junior Miners still have back-to-back meetings with like-minded investors, including people in the Battery Metals space.
New energy metals have gone from being a government pet project to something cool - Louis James
During the conference, Power Metals Corp CEO Johnathan A More met many like-minded IAJ (investors, analysts and journalists) focused on battery metals exploration. Execs they spoke to discussed several topics, the most important things investors should know about their company, as well as major near-term catalysts investors should be watching out for.
This Electric Market Needs a Recharge.
Power Metals Corp was recently covered (email us to get a copy) in a Ubika Research (of smallcappower.com fame). One of the catalyst they have pointed out was that, even if not all of the 100% vehicles in the world will be replaced by Electric Vehicles (EV), the near-term future projects are expected to be robust for all of these metals, which should lead to sustained or increased pricing for all these commodities in the medium to long-term period.
Source UBS: Commodity demand change assuming 100% of the world's vehicles are replaced by EVs
Ubika expects a deficit over the next one to five years. Albemarle, SQM, and FMC cannot simply turn on
the taps and produce more lithium instantaneously.
The Rise of Megafactories producing Batteries puts focus back on Supply
These larger facilities, with a capacity of producing 1GWh or more of cells per year (megafactories) were to become the new standard for the industry. Back in 3Q17, there were only three planned plants, Tesla’s Gigafactory in the US, LG Chem’s plant in Nanjing, China and Foxconn’s plant in Anhui, China which didn’t make it off the drawing board.
Now there are 27 planned battery cell plants either in production, due to expand capacity or due to begin production by 2021.
The combined planned capacity of these plants is 344.5GWh. To put that into perspective total lithium ion cell demand in 2017 is estimated at 100GWh.
40-year advanced Chemical Process veteran to lead R&D for spodumene extraction
TSX:PWM, OTC:PWRMF have recently announced, through working partner MGX Minerals, that Dr James Blencoe, CEO of Orion Laboratories LLC, will be spearheading the development of a commercialised method to extract spodumene from pegmatites found at Case Lake, Power Metal Corp's flagship hard rock asset 80km east of Cochrane, Ontario.
The technology is modular and highly scalable, thereby enabling a small “factory footprint,” and holds the potential to decrease overall hard-rock lithium production costs.
Dr Blencoe is an expert in thermochemical processing, having previously developed a technology to Magnesium One (CSE:MDD) to produce 99.9% wt pure MG material at lower cost and faster scalability using a modular plant operation.
Dr Blencoe has a BS degree in Mining Engineer and a PHD degree in Geology from Stanford University. He has more than 40 years of experience designing, constructing, operating and maintaining specialised equipment for advanced chemical production. He has published more than 50 articles and reports, in leading peer-reviewed scientific journals and technical magazines and is the lead author of 3 US patents on magnesium production.
Further drilling programs planned in 2018
Power Metals announced 2 more drill programs in February that targets 6 different areas, 4 of which have never been drilled before. People Johnathan More spoke to at PDAC 2018 were interested in their mapping program on the domes, and the details of their 13,000m drill campaigns, to begin in April and carried out in 2 phases over Spring and Fall this year.
The first 8000 m will target the new spodumene pegmatite dykes located between the Main Dyke and the South Dyke.
The second 5000m will target East Dyke, down dip extension of Main Dyke and dome targets identified in April.
Power Metals Corp wants to discover significant lithium tantalum deposit during their 2018 campaigns.
Ubika has ascertained that drill campaigns planned this year should contribute to sustained interest in Power Metals stock and company.
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