Lithium remains a hot topic in the resource industry, underscored by the ongoing rise in popularity and production of electric vehicles. While maybe not evolving quite as quickly as some expected, the EV space is likely nearing a stage where it will experience exponential growth, driven by concerted efforts to reduce dependency on fossil fuels and gas- and diesel-powered autos.
More EVs means more lithium is needed for the rechargeable batteries making them go, a fact that has not slipped past investors or explorers that are aware of a looming lithium shortfall as demand booms.
Ultra Lithium (TSX-V: ULI) is hoping to play a part in filling a gap in future lithium production. The Vancouver-based exploration company is focused on developing its diverse lithium assets in the U.S., Canada and Argentina. The company's projects are located in some of the most lithium-prolific and/or mining-friendly jurisdictions in the world, including the vaunted "Lithium Triangle" in South America, north of the Silver Peak Lithium Mine in Nevada (the only producing lithium mine in North America currently) and the Thunder Bay Mining District in Ontario.
On Tuesday, Ultra said that it received assay results from last month's exploration work at its projects at the La Borita and Antefalla properties in the Province of Catamarca, Argentina. The work was designed to test for shallow targets just below the surface as well as test deep historical drill holes for lithium concentrates.
Both tasks were successfully completed with goals achieved.
Exploration from deep holes at La Borita returned strong mineral values, including 220 milligrams per liter (mg/L) lithium, 1140 mg/L magnesium, 423 mg/L boron and 1790 mg/L potassium in Hole LB002 and 215 mg/L lithium, 983 mg/L magnesium, 425 mg/L boron and 1990 mg/L potassium in the 650-foot-deep Hole LBDDH005. Shallow subsurface testing also showed concentrations of the same minerals, only to a far lesser extent.
At Antafalla, which is adjacent to Albermarle's newly acquired (2016) Antafalla potash/lithium property, 12 shallow subsurface brine samples indicate anomalous values of lithium, in the range of 2.55 mg/L to 75.5 mg/L with an average of 31.8 mg/L. Akin to La Borita, data suggests that lithium grades tend to increase with depth, a thesis Ultra intends to test with deeper drilling once this round of exploration is completed.
Shares of ULI are up on the day by 21.6% at 22.5 cents. After trickling lower from January through August, shares have been on the rise over the past month, climbing 32.4% with today's move (as of 12:45 PM ET) and hitting a 2017 high of 24 cents on September 18.
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