The demand for battery metals cannot be overstated. The International Energy Agency (IEA) estimates battery and minerals supply chains need to expand ten-fold to meet projected critical minerals needs by 2030, explains Gerardo Del Real, editor of Junior Resource Monthly.
The report concludes the industry needs to build 50 more lithium mines, 60 more nickel mines, and 17 more cobalt mines by 2030 to meet global net carbon emissions goals. The industry is also placing an emphasis on securing these metals and building these mines in jurisdictions that are friendly to the U.S. and meet international standards.
Any company with a significant deposit of lithium, cobalt, etc. will command a premium for its metals. Companies like Patriot Battery Metals (TSX-V: PMET)(OTC: PMETF) has ave been among the go-to’s for lithium exposure in our portfolio. Indeed, the company is in the eye of the absolute perfect storm for a massive offer once it proves up the scale and potential at its Corvette district.
Patriot recently announced preliminary Heavy Liquid Separation (“HLS”) tests on drill core from the CV5 Pegmatite (CF21-001 and 002) at two different crush sizes support a potential flowsheet using Dense Media Separation (“DMS”) process followed by magnetic separation to produce a 6+% Li2O spodumene concentrate. Translation: That's the standard for battery-grade lithium.
HLS tests followed by magnetic separation produced a 6+% Li2O spodumene concentrate at overall lithium recoveries exceeding 70%. Patriot will follow this work up with a detailed metallurgical program.
Other highlights from that release include the spodumene in the metallurgical samples from the CV5 Pegmatite being very coarse grained and liberating effectively at -6.5 mm and -9.5 mm crush sizes, which has the potential to reduce the power intensity of the flowsheet due to less grinding (typically the most energy intensive part of the flowsheet).
The results are an important de-risker of this portion of the Corvette district. You can have the biggest lithium deposit in the world, in one of the most stable jurisdictions on the planet but it means nothing if the lithium isn’t recoverable or economic.
The combination of favorable early mineralogical results, additional pegmatite clusters kilometers away, and a raging lithium bull market led to news that I suspect took many by surprise and signaled to majors and institutions alike that Patriot is playing the long game and believes it has a special opportunity at the Corvette district.
On August 23, 2022, Patriot announced that it has appointed highly experienced mining executive and former Managing Director and CEO of Pilbara Minerals Limited (Australia: PLS), Ken Brinsden, as Non-Executive Chairman and director, effective August 22, 2022. That’s the same Pilbara he helped lead from development to an $8 billion market cap.
I believe Patriot has a very good chance at closing out the year near the $15 level and a $25-$30 share price leading to a buyout next year is not out of the question. Patriot is a buy up to C$6.00/US$4.75 for new investors or those looking to add to positions.
