People who invest in lithium most likely look for big players to invest in, however many oversee the fact that there are some small cap companies worth their money. One of these companies would be Power Metals Corp. Baystreet.ca already mentioned some of the reasons why PWM is a good investment opportunity but that is just a part of the whole picture. To help you understand what made this small cap so increasingly popular lately we decided to list the 5 main reasons that make Power Metals so different.
#1 Drilling More This Year Than Anyone Else
Power Metals has already done more drilling this year than any other hard-rock lithium miner in the country.
They’ll do more than any other lithium exploration company for the rest of the year, too—and they are already fully funded for that drilling.
Now, Power Metals has three key lithium properties in Ontario:
The Flagship Case Lake Lithium Property, with 38 mining claims covering over 7100 hectares, sits right next to established gold mining camps in the Abitibi Greenstone Belt and is hosted by a single laccolith. A laccolith is a dome-shaped igneous body with a flat bottom which is an offshoot of a batholith. A laccolith looks similar to a water drop on a table. The Case Batholith is a 50 x 85 km ovoid granitic complex characterised by a gravity low. Power Metals has identified that the Batholith has multiple domes along its margins.
- The Paterson Lake Property has known multiple sources of pegmatites that remain attractively underexplored and is only 2 kilometers away from another big lithium property, Avalon’s Separation Rapids.
- The Gullwing-Tot Lake Property—another underexplored hard-rock play with two known pegmatite sources.
Power Metals has already done a ton of drilling, and it’s got 6 more drill targets to go for this year:
In fact, they’re budgeted and funded for an extraordinary 15,000 meters of drilling this year alone, in addition to January’s 3,000 meter program and the 5,000 meter program completed in 2017, with mouth-watering results that were disclosed in their press releases …
#2 Huge exploration upside
It’s all about domes.
What are domes? They are huge rock formations that contain large concentrations of lithium rich pegmatite.
When Dr. Selway started drilling at the company’s flagship property, Power Metals thought they were dealing with one big rock, with pegmatites entwined. But what Selway found was a giant “dome” of rock.
And not just one, but 9.
In fact, it’s so big that Selway’s dilemma now is that there are too many drill targets. It’s a great dilemma for a junior miner of the hottest metal on demand to have.
Now, Power Metals is being directly compared to the huge success story of Nemaska Lithium, the leader of Canadian hard rock lithium mining. And while this is a good and direct comparison, Power Metals’ average lithium grade for exploration samples is currently higher than that of Nemaska’s at Nemaska’s equivalent early stage of development.
And in this game, it’s all about grade.
The industry cut-off average grade for most world class spodumene deposits is 1 percent lithium. Power Metals currently has samples that average above that, some way higher. This incredibly high-grade zone was just drilled in January for a total of 3,000 meters and the company is currently awaiting results from the lab. Check out Power Metals’ news releases of January 22 and January 24, 2018.
At this point, the exploration upside at Case Lake is huge.
#3 Smartest Lithium Money in the World Getting in on This
Nemaska (TSX:NMX) is sitting on what many believe to the be second-richest and largest lithium deposit in the world—and despite that, some of its biggest shareholders are looking to back Power Metals.
It speaks volumes about confidence when one of the biggest North American lithium investors buys into a junior like Power Metals. They’re comparing Case Lake to Nemaska, and are seeing plenty of potential.
Investors love the domes—all 9 of them. They love the drilling results so far, and the massive drill plan for this year. They love the high-grade lithium. They also love the drilling costs. According to Power Metals, Case Lake exploration costs could positively surprise the markets.
No company that we know of with this size is set up to drill this much, and for such a high grade of lithium at such a low cost.
#4 First in line for new lithium opportunities, with Queen of Pegmatites
Dr. Julie Selway is globally known as the Queen of Pegmatites. No one is more qualified or has more knowledge than her in this field, period.
Selway knows. She’s a rare earth expert and one of the most highly sought-after geologists in the world. She’s travelled all over Ontario and already worked on some 90 percent of all lithium pegmatites in the province—identifying the top ones.
She hitched her wagon to Power Metals (TSXV:PWM; OTC:PWRMF) because it’s sitting on the best pegmatites. When Power Metals hit substantial mineralization on its 8th hole, Selway dropped everything to work with the company on a full-time basis. She was hooked at that point, and so were the investors.
Because of this, Power Metals now has a huge advantage over others looking to get in on new lithium exploration territory. They are often first in line to get a chance to option advanced lithium properties that become available, because everyone wants Selway behind it. Selway means smart, fast exploration and development.
Power Metals’ other two properties were scooped up largely because of Selway’s reputation in the space, getting the company deals that only the ‘Queen of Pegamatites’ could. Having Selway on board was the vendor’s key condition in one of the deals.
#5 Endless News Flow
The drills start drilling again in May, and once that happens, the news flow should be continuous. But it will start even before then as the market awaits results from January drilling at Case Lake.
And when investors get wind of the tax benefits of hard-rock lithium mining in Ontario, we expect the interest to spike further. Ontario offers flat 10-percent mining royalties, with no tax on the first $10 million in annual sales for three years in a new mine. The Latin American ‘lithium triangle’ can’t come close to this tax set-up.
So right now, we’re looking at a junior lithium miner that’s taking advantage of brilliant domes of high-grade, hard rock metal while everyone else is distracted by the brine.
This is a $56-million market cap company sitting on 9 domes on a single property that have enough lithium exploration potential to get some of the biggest names in new lithium on board, alongside institutional investors.
We’re looking at the company that managed to win over the most sought-after hard-rock lithium geologist in North America, and put them at the front of the line for optioning new acquisitions. We’re looking at a company that, come Spring, will be at the height of a 2018 drilling season that has the potential to be the biggest thing in hard-rock mining this year.
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