According to a report by Roskill, lithium demand has been boosted significantly by sales of smartphones and tablets as well as by increasing electric vehicle output. The report notes that demand for lithium has been boosted by 18% since 2010.
Roskill further notes in its report that batteries now account for 37% of total lithium consumption. However, other markets for lithium are seeing a slight slowdown due to China’s weakness. But going forward, the key growth driver is going to be the batteries market and the outlook there is strong.
Not surprisingly, lithium companies are investing heavily to meet future demand. One such company is QMC Quantum Minerals Corp. (TSX-Venture: QMC).
Based in Vancouver, QMC is engaged in the business of acquisition, exploration and development of resource properties. Its objective is to locate and develop economic precious, base metal and resource properties of merit. The company’s properties include the Cat Lake Lithium Property (the former Irgon Mine), two VMS properties, the Rocky Lake and Rocky-Namew known collectively as the Namew Lake District Project, and the Carrot River Gold Property. All of these properties are located in Manitoba.
QMC announced Thursday that it has entered into an option agreement with 101162742 Saskatchewan Ltd. whereby it has the exclusive right to acquire an undivided 100% right, title and interest in the Cat Lake Lithium Property in Manitoba.
The Cat Lake (also known as the Irgon Lithium Mine) Property hosts several rare-element granitic pegmatite occurrences, one of which hosts and is locally known as the former Irgon Mine. The Irgon occurrence and several other known pegmatite dikes are situated on four adjoining mineral claims which comprise the Cat Lake Property.
The total area covered by the four claims is 700 hectares. Access to the property is excellent as Provincial Highway 314 in southeast Manitoba transects the claims, approximately 150 kilometres northeast of Winnipeg.
Cumulative terms of the current agreement with 101162742 Saskatchewan Ltd. require the Company to pay $46,500 and issue $46,500 in shares over a three-year time period.
The property covers the former Irgon Mine and several known pegmatite dikes of which currently the largest and best exposed is the spodumene-bearing Irgon Dike. This dike is well exposed on a glaciated surface and strikes N80°W with a dip of 87°S. It currently has a total exposed strike length of 442 metres and displays widths varying between three to 18 metres, with an average width of approximately seven metres.
Investors cheered the news with shares up over 16% Thursday and near their 52-week high.
