We cover and analyze many companies in the Lithium sector, and it’s been steadily clear that the junior players are the ones with the biggest upside for investors; and those targeting the “Lithium Triangle” in South America are entering the game with the most advantages.
Our due diligence indicates the following company: A.I.S. Resources Limited (OTC: AISSF / TSX.V: AIS), a junior resource company aggressively advancing its lithium project in South America’s “Lithium Triangle”, that’s primed and ready for a major breakthrough.
The Lithium revolution is upon us, a fact that any investor paying attention is fully aware of. It’s impossible to ignore, as the valuable battery material is being sought after by markets all over the world.
Here’s a short video clip of a very excited Marc Morin, CEO of A.I.S. Resources, quickly explaining the true potential of this up and coming company:
Manufacturers in Asia, Europe, and North America are all clamoring to secure their lithium supplies, as a sea change is happening on the roads with EV (Electric Vehicle) production set to double or triple in the next few years.
In order to power this major shift on the road, and to meet all other consumer electronics demands, governments are incentivizing the lithium battery industry through major subsidies. However, if they’re to meet their production goals, each manufacturer will need to secure a steady supply of lithium.
This has been known for quite some time now.
In March of 2016, Elon Musk, CEO of Tesla stated, “In order to produce half a million (electric vehicles) a year… we would basically need to absorb the entire world’s lithium- ion production.”
But that hasn’t stopped the increase in demand around the world.
The Lithium-Ion battery market is expected to surpass $53 billion by 2024.
The European Union has allocated over US$417 million as part of its Horizon 2020 program, designed to incentivize further innovation and research in lithium battery technology.
The United Kingdom has announced US$320 million as part of its “Faraday Challenge” over the next two years to devote to lithium battery technology.
Chinese battery giant Contemporary Amperex Technology Co Ltd (CATL) is planning a US$1.97 billion IPO to drive its expansion and meet soaring demand for electric car batteries.
And BYD, the Chinese electric car and bus company part-owned by Warren Buffett, has talked extensively with South American lithium producers to secure supplies of the key battery material.
You Could BUY and WIN with an Undiscovered Lithium Mining Stock at Pennies Per Share. See Our Recommendation.
The Lithium Giants Are SIGNIFICANTLY Up — 63% Plus Returns This Year!
Large lithium players are having a big year, up on rising demand. Among our surveyed group, our two leading selections had a 3-year performance for investors of 64.59% and 50.82% respectively.
NOTE: the world’s leading lithium producers all have operations on the ground in South America’s “Lithium Triangle”—the hottest spot for lithium development and production.
Much BIGGER Gains Coming from Leading Smaller Lithium Players — ~340% Since Making Major Lithium Development Advancements
Through our research over the junior lithium space, there are four standouts whose prices increased as much as 529%+ since delivering major advances in their respective lithium deals, and one up-and-coming lithium company (A.I.S Resources) that has made similar advances, but has yet to be justly rewarded by the market. We think that stock should be an easy double or triple, at minimum.
After we sampled a group of earlier lithium players, we noticed a trend—All of these junior exploration or mining companies have consistently advanced their lithium projects, and saw major gains after structuring financing and advancing their lithium interests:
Advantage Lithium – 375% gain – after announcing positive drilling results on its Cauchari project in Argentina with partner Orocobre Limited.
Lithium X – 529% gain – after announcing acquisitions next to Albemarle Corp. (the world’s leading producer) and advancing two projects in Argentina.
Millennial Lithium – 345% gain – after entering reaching option agreements on Argentinean lithium operations and capital structuring.
Nemaska Lithium – 329% gain – after announcing capital raises and making headway on lithium plant operations in Quebec.
Across all four, that’s an average gain of nearly 400%.
We used the same model and applied it to identify another player with a similar profile at the same pre-discovery stage: A.I.S. Resources Limited.
A.I.S. Resources Limited Has Accrued 4 South American Lithium Projects
As part of the world’s largest lithium resource region known as the “Lithium Triangle,” Argentina is a major global lithium producer with significant additional potential, and a respected overall mining-industry history.
The country has become well known for its many mineralized salars or salt fields, which include the Hombre Muerto and Salar Olaroz properties each producing lithium.
A.I.S. has four main lithium projects, all of which are strategically located in the Argentina’s Puna Region.
Located in the heart of the Lithium Triangle, the Puna Region is one of the largest known lithium deposits in Argentina. The region is an elevated plateau that lies to the east of the Andes Mountains.
Each A.I.S. lithium project in Argentina are nestled among large, known lithium deposits, operated by prominent majors in the sector.
We are not only impressed by the company’s portfolio, but also by the makeup of its experienced management team led by President and CEO, Marc Enright-Morin, whose business savvy in the resource sector has been through his building of successful mining teams.
For A.I.S., that team includes COO Phillip Thomas, who has spent the past 12 years exploring lithium brines, building and operating pilot plants for production, and building production and processing facilities. Thomas had first-hand experience with the highly technical process of operation a lithium carbonate/lithium chloride plant at the Salar de Rincón. From 2004-2008, Thomas served as Chairman and CEO of Admiralty Resources, where he and his team explored and built the lithium carbonate processing facility that commenced operation in 2007—which led to a sale to the Sentient Group in 2008.
On that same Salar de Rincón lithium project, Thomas was joined by Dr. Carlos Sorentino who has rejoined on this project as the Chief Chemical Engineer of A.I.S.
Dr. Sorentino specializes in the exploration, metallurgy and development of evaporitic deposits mineral resources, mainly in the Andes Cordillera. In addition to his development of the Salar de Rincón, Dr. Sorentino was also involved in the development of the Salar del Rio Grande, and the Salar de Pozuelos, among others.
In a business that often hinges on the strength of management above ground, just as much as it does on what lies underground, A.I.S. is in very good hands.
Flying the Flagship
Across its four projects, A.I.S. Resources has approximately 10,457 hectares—Guayatayoc, 2,500 hectares; Guayatayoc III, 2,725 hectares; Vilama, 2,500 hectares; Chiron 2,732 hectares
Flagship property, Guayatayoc, already has a mining permit, and will be undergoing a TEM-Electromagnetic survey in due course. A drilling permit on the property is expected before the end of April 2018.
A.I.S. knows a lot about this property already, having acquired a 2013 PhD study (and its 2015 follow-up paper) with an approximate exploration value of USD$3 million, and three years work. The group is ahead of the game, with an NI 43-101 report already available on the company website, and the project’s environmental impact study has already been completed.
Guayatayoc was sampled and returned Li ranging from 270-900 ppm in ponds that had acquifer flow, as well as 100-190ppm for brines sitting in the top layers.
The geophysics on the project show large, highly-conductive layers or “acquifers” present between 20-250 metres, with a strong correlation to brine-soaked halites and sands.
Once the drilling permit is issued, it’s game on. The project will be fast-tracked, as chemistry and process work (ie. mass and thermal balances for processing) is already complete.The company has produced 22kg of lithium carbonate from the pilot plant processing using brines at Guayatayoc.
What’s important to note is how the tectonic structure of the Guayatayoc salar is in, extends to other well-known salars, such as Salinas Grandes, Pozuelos, Pocitos, and Rincón that hold the most lithium in the Puna Region.
Prime Real Estate
Guayatayoc is in great real estate, located in the northwestern Argentinian province of Jujuy, along the border with Bolivia and Chile. Just to the south is the Hombre Muerto Salar, which has been operating for nearly 25 years, and shows the enormous amount of lithium in these salars, and the annual acquifer flow rates.
Guayatayoc III is an extensive expansion to the west of Guayatoc, totaling a coverage of over 5,000 hectares of the Guayatayoc Salar.
The third property, Laguna Vilama, is yet to be as advanced as Guayatayoc—but early signs for the project also located in the Jujuy province have been favorable. The project is within 100km of Orocobre’s new development at the Olaroz salar (6.4 Mt LCE resource), and the joint SQM/Lithium Americas project dubbed the Cauchari salar (8.7 Mt LCE resource).
We recently had the opportunity…
In a recent conversation Lithium News staff had with CEO Marc Enright-Morin (March 21, 2018) he noted to us that they already had enough cash on hand to drill the Guayatayoc and Chiron properties, so we are anticipating some major news in the coming weeks, and for a junior to be capitalized to this level is a very positive position to be in.
The Chiron Project consists of four concessions in the Salar de Quirón in the Province of Salta, located approximately 10 kilometers from the township of Pocitos. Very encouraging results from other, nearby, explorers classifies the Chiron Project as having significant prospectivity.
In proximity to all four of A.I.S’ properties, nearby development by high-market cap neighbors includes projects held by Millenial Lithium, LSC Lithium, Orocobre, SQM, Lithium Americas, and Argosy Minerals—all of which have market caps above $200 million.
At its current market cap below $40 million, A.I.S. has plenty of potential growth room available, as the market witnesses it catch up with its peers.
There is a lot of activity to come within the next six months, which should drive the value of the company up swiftly. With the company’s current capital structure, its significant portfolio in a valuable lithium district, and its highly-skilled management team at the helm, A.I.S. has a lot to offer in the months to come. This should be a very interesting year for this junior mining company in the heart of the Lithium Triangle.
FEATURE COMPANY: FOR COMPARISON
A.I.S. Resources Limited
Market Cap: $32.6 million
A.I.S Resources is a Junior Canadian Exploration Company established in 1967 focused on the exploration and development of lithium properties in Northern Argentina.
Lithium Stars: No More Early-Bird Bonus for Big Gains, But Worthwhile to Study
These stocks represent some of the early leaders who have already experienced a major lift from the rise in lithium. They are not likely to see the kind of appreciation that our feature company could produce, but they are solid examples of just how much profit the lithium market is already yielding.
Market Cap: $15.15 billion
Albemarle is a global specialty chemicals company, headquartered in Charlotte, NC, with leading positions in lithium, bromine and refining catalysts.
Market Cap: $12.7 billion
For more than a century, FMC Corporation has served the global agricultural, industrial and consumer markets with innovative solutions, applications and quality products. FMC operates its businesses in three segments: FMC Agricultural Solutions, FMC Health and Nutrition and FMC Lithium.
Lithium X Energy
OTC: LIXXF // TSX.V: LIX
Market Cap: $137.5 million
Founded in 1997, and headquartered in Vancouver, Canada, Lithium X operates as a lithium exploration and development company in Argentina and the United States. The company owns multiple important salar lithium projects in Argentina, and also owns a 100% interest in the Clayton Valley South project in Nevada.
Sociedad Quimica y Minera de Chile
Market Cap: $14.85 billion
SQMi a worldwide company, based in Chile and founded in 1968, that today has a strong global presence in a wide variety of industries and applications through its five business lines: Specialty Plant Nutrition, Iodine and derivatives, Lithium and derivatives, Industrial Chemicals and Potassium.
Our Thoughts: A.I.S. Resources Looks Very Well Positioned!
Time is of the essence. Successful junior mining companies tend to take off when they make important new lithium discoveries, and are on the brink of production. In other words, they can’t stay “junior” forever.
The fact that AIS has an incredible flagship project with Guayatayoc, as well as a pipeline of high quality properties in such a favorable and active region of Salta province, is quite encouraging. The company has shown that it is willing to aggressively assemble its lithium footprint in Argentina, in a strategic manner that compliments the company’s overall mission.
We like leverage—A lot. So when we look for leverage on our speculative selections, we’re looking for 10 to 1, 20 to 1, or better returns. The only place to find those kinds of returns in the mining business, is in the early-stage setting, with a hard focus on the potential production of a viable resource. Which is why we’re so drawn to Argentina’s best up and coming lithium plays, and in particular, A.I.S. Resources.
This stock shows all the signs of a future lithium producer, with a beautiful timeline to advance their lithium interests, and be in production in 2019. Here’s what stands out for us for AIS:
- Option on 4 Argentinean projects located near some of the world’s leading lithium players, including multi-billion market cap SQM, and Orocobre.
- Samples collected at Guayatayoc and Vilama have lithium values in the range considered to be exceptionally commercial (910ppm and 820ppm Lit respectively).
- High potassium grades have also been reported from sampling, with a favorably low magnesium-to-lithium ratio, implying easier ability to remove magnesium from brine.
- Drilling is imminent.
- Mining license has already been issued.
- Already have an established marketing plan for off-take agreements across Europe, Asia and China.
- Production decision to come in July 2018
The Guayatayoc Project is a very advanced project being very competently handled by an experienced technical team with a proven track record—They’ve been here before, and seen it through to the goal line.
Every one of AIS’s exploration goals are progressing on time, and 2018 should be filled with catalyst events. The mining license has already been issued, we’re not far away from feasibility, and the company has the right capital structure in place.
Others have already cashed in on this trend. For instance, if you had sunk just $6,253 in the three stocks mentioned stock prior to their respective news announcing acquisitions and advances in lithium projects, that investment would be worth over $33,078.
Consider A.I.S. Resources (OCTQB: AISSF // TSX.V: AIS) at this current stage of pre-feasibility. Stay up-to-date on the company’s news and advances as they break, by joining their email list at http://aisresources.com.
Keep in mind that there were several others who waited on companies like Lithium X, Advantage Lithium, Millennial, and Nemaska, all because they were still smaller, early-stage junior companies—All of which who missed out on some of the biggest movers in the lithium sector, even the entire mining sector.
While there are still going to voices out there stating that the supply imbalance in the lithium market is going to result in just another “bubble” to be popped, we whole-heartedly disagree. This has been a sustained climb, with a market shift that’s too substantial for this to be just a fad.
If you believe in the same electric power revolution that has made Elon Musk a household name, and has led Warren Buffett to invest heavily in electric vehicles, then you have to agree that lithium is here to stay. Massive amounts of value will come to those who can supply the lithium, and make many fortunes along the way.
It’s our belief that early investors who take a chance on companies making aggressive pushes in the space will experience the biggest gains.
- The Economist: https://www.economist.com/news/americas/21723451-three-south-american-countries-have-much-worlds-lithium-they-take-very-different
- A.I.S. Resources Limited: http://aisresources.com/
- Wall Street Journal: https://www.wsj.com/articles/how-lithium-defied-the-global-commodities-rout-1462450790
- European Commission: https://ec.europa.eu/programmes/horizon2020/
- Fool.com: https://www.fool.com/investing/2017/06/13/3-lithium-stocks-ramping-up-production.aspx
- Yahoo! Finance: https://finance.yahoo.com/quote/AIS.V?p=AIS.V
- A.I.S. Resources Limited: http://aisresources.com/investors/investor-presentation/
- Albermarle Corporation: http://www.albemarle.com/Home-3.html
- FMC Corp.: http://www.fmc.com/
- Lithium X Energy Corp.: http://www.lithium-x.com/
- Sociedad Química y Minera de Chile: http://www.sqm.com/
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