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Kaiser Watch August 25, 2022: California's Zero ICE Dream & Lithium Mania 2.0

Posted: Aug 25, 2022JK: Kaiser Watch August 25, 2022 with Jim Goddard and John Kaiser
Published: Aug 25, 2022KRO: Kaiser Watch August 25, 2022: California's Zero ICE Dream & Lithium Mania 2.0
Kaiser Watch is a weekly 15-30 minute audio show produced by KaiserResearch.com with Jim Goddard and John Kaiser discussing the junior resource sector. The show has three parts: the first is a general topic, the second discusses developments involving the KRO Favorites which as of January 1, 2022 are no longer exclusive to KRO members, and the third is a peek inside the members only KRO Bottom-Fish Workshop. KRO is transitioning into a Do-It-Yourself research platform that covers all Canadian and Australian resource listings and which also features a Bottom-Fish Workshop where John Kaiser highlights juniors with solvable "missing pieces". Companies that graduate from the Workshop may become part of the Annual Favorites collection whose profiles and related commentary are unrestricted for non-members. Visit the KRO Favorites Dashboard for quick access to all the unrestricted Favorites related content. KRO is not sponsored or compensated directly or indirectly by public companies. The business model is based solely on membership fees in the form of a USD $450 Annual Individual Membership that at some point will increase substantially to reflect KRO's shift to a research platform. However, when the change happens active members will be grandfathered to renew indefinitely at the current rate provided they maintain a continuous paid membership. Kaiser Watch is available at Kaiser Research YouTube and as a Podcast downloadable from KaiserResearch.com. Each episode will be made available through the publication of a Kaiser Media Watch blog report which will provide links to specific questions and include supplementary graphics. All episodes will be archived at Kaiser Watch.

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Kaiser Watch August 25, 2022: California's Zero ICE Dream & Lithium Mania 2.0
Jim (0:00:00): Canalaska Uranium reported results for what you called a discovery hole at its West McArthur project. Did it meet expectations?
Canalaska Uranium released assays for its hole #67 on August 22, 2022 confirming a major new huranium discovery in the Athabasca Basin. True width is not yet known though they assume the conductive structure dips to the southeast. The second rig has now completed a pilot hole and has joined the first rig in wedging around the discovery hole. These rigs are fine for drilling deep scout holes, but they are prone to deviation, which is a problem when trying to do small stepouts on a mineralized zone that begins between 800-900 m depth. So Canalaska's focus for now is to learn the structural framework in the vicinity of the discovery hole so that delineation drilling can get seriously underway in 2023 when they are wedging with a directional drill rig.
Canalaska Uranium Ltd (CVV-V)

Bottom-Fish Spec Value
West McArthur Canada - Saskatchewan 3-Discovery Delineation U

Location of Discovery Hole on New Conductor

Hole 67 and Assay Results

Examples of key Athabasca Basin deposits with geometry 100 m below unconformity highlighted
Jim (0:05:08): This year's copper price retreat has not helped P2 Gold which is working to demonstrate the feasibility of its Gabbs copper-gold project in Nevada. How are things going for its Bam gold exploration play in the Golden Triangle?
P2 Gold has stopped physical work on the Gabbs copper-gold project while it works on completing a PEA before year end. Copper's sharp drop during the past few months has chilled market interest. My own OV for a combined sulphide milling oxide heap leaching scenario does not clear development hurdles at the current gold and copper prices. Management, however, understands that, and their goal is to develop a mining plan which starts with low CapEx heap leaching of the gold dominant oxides, and use the cash flow to build the more expensive mill needed to process the copper dominant sulphides. Key question will be the base case copper price. Most people think the current spot price is too low if the world avoids a n extended recession, and certainly too low if the energy transition away from fossil fuels is supposed to become reality. The summer excitement was supposed to come from drilling the Monarch gold discovery in the Golden Triangle which began in late June. So far drilling has been limited to shallow holes designed to outline a bulk tonnage gold system in the 1-2 g/t range. The summer bluesky was supposed to come from deeper holes testing a hypothesized feeder zone somewhere beneath the young basalt cap. They were ready to roll with a ZTEM survey in early July but low cloud cover delayed the start of the survey. It was completed early August and is still undergoing interpretation and consolidation with other geophysical data. The next milestone will be confirmation that a meaningful geophysical target has emerged that justifies drilling deeper holes in September-October.
P2 Gold Inc (PGLD-V)

Fair Spec Value
BAM Canada - British Columbia 3-Discovery Delineation Au Ag Cu

Deep Feeder Target awaiting ZTEM Survey Interpretation

PEA with ore schedule that stages CapEx spending key to making Gabbs work

PGLD priced fair for $500 million Gabbs outcome and $2 billion Bam outcome

Ugly Price Chart for Copper & yet Warehouse Stocks are low!
Jim (0:09:27): How is Lithium Mania 2.0 doing in the current resource sector bear market?
Although lithium enriched pegmatites occur around the world, one region blessed with water, a bounty of pegmatites that have only been cursorily explored due to historically low demand for lithium, a well-trained exploration culture, and provincial governments eager to support downstream processing capacity such as refineries that convert lithium concentrates into the battery grade lithium hydroxide required by battery-makers, is eastern Canada. In my June 12, 2022 MIF presentation, Lithium Dawn or Twilight's Last Gleam, I made the case that Lithium Mania 2.0 will be driven by an exploration boom for lithium enriched pegmatites in eastern Canada that will rival the Canadian diamond exploration boom of the 1990s. This exploration-development boom has to get underway right now in order for sufficient lithium mine supply to be on stream by 2030. This means that 2023-2026 will be an intense period for Lithium Mania 2.0 as advanced projects in Australia and the Lithium Triangle are put into production while new, open-pittable pegmatite deposits grading 1%+ Li2O are discovered and delineated. For KRO members only I have launched the KRO Lithium Resources Center which features publicly listed companies with a primary focus on lithium exploration and mine development. The Lithium Supply Center serves as a gateway for additional information information. The Lithium Conversion Tools report contains a Rock Value Matrix which makes it easy to eyeball the value of a tonne of ore based on the lithium grade when presented as lithium oxide (Li2O) and a range of lithium carbonate prices. I've included a snapshot of the rock value cheat sheet below. The MIF presentation is embedded below but you can also visit KMW Blog June 18, 2022 to access the presentation pdf as well as the presentations and interviews for Brunswick Exploration and Avalon Advanced Materials for excellent coverage of the lithium space by Bob Wares and Don Bubar. The lithium part of this KW episode was inspired by news tha California is banning the sale of new gasoline cars by 2035. If this is to become reality the world needs ten time more lithium production than we currently have.
Patriot Battery Metals Corp (PMET-V)

Unrated Spec Value
Corvette Canada - Quebec 3-Discovery Delineation Li
Brunswick Exploration Inc (BRW-V)

Bottom-Fish Spec Value
North Shore Canada - Quebec 1-Grassroots Li

The 3 Lithium Booms during the past decade

Rio Tinto's Lithium Demand Projection if EV replaces ICE Fleet by 2035-2040

Current & Potential Brine Sourced Lithium Supply

Current & Potential Bedrock Sourced Lithium Supply

Imagine another 10-fold growth by 2035

Known Lithium enriched Pegmatites in Quebec

Use a formula to calculate the rock value of a lithium assay or use the Lithium Rock Value Matrix

Cheat Sheet for eyeballing Rock Value of reported bedrock assay grade

Patriot Battery's Corvette already commands a $700 million IPV without even a resource estimate

What will it take for Brunswick's $50 million IPV to expand 10-fold?
Disclosure: JK owns Brunswick Expl; Brunswick and Canalaska are Bottom-Fish Spec Value rated

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