Quantum Minerals Corp. (TSXV:QMC) was up 1.69% in late afternoon trading on May 25. Shares of Quantum have dropped 39.8% in 2018 so far. However, the company has progressed well in the month of May opening the door for speculative buyers. It had previously received a drill permit in mid-March for the Irgon Lithium Mine project.
The junior miner hopes to take advantage of market conditions that have ramped up lithium demand. A key development is the production of electric vehicles, which is expected to ramp up broadly in the next decade. Lithium was on the U.S. government’s final list of Critical Minerals for 2018. According to Patricio de Solminihac, CEO of Chilean producer Sociedad Quimica y Minera de Chile, lithium demand is set to climb by 20% this year.
On May 23 Quantum announced that it had engaged SGS Canada Inc. to provide technical support and consulting services for its field exploration and drilling program at its Irgon Lithium Mine. In early May Quantum disseminated historical assays to 2.3% Li20 over 7.3 feet. The assays compared “favourably” to its own 2017 surface channel samples that were released in March of this year.
Lithium demand growth has been driven by over 50% growth in the battery market for electric vehicles. According to data published by Allied Market Research, the global lithium ion battery market is projected to reach $46.21 billion by 2020 at a compound annual growth rate (CAGR) of 10.8%. This is reason enough to consider taking a flyer on Quantum Minerals which is looking to reboot a production field over half a century old.
