With the election now being over, President-elect Joe Biden plans to push the most progressive climate policy the U.S has ever had. This follows suit with many nations worldwide looking to cut carbon emissions by focusing more on green technology.
As the below chart shows, global emissions are down by 6.3 percent. The largest contributor to this drop is the reduction in ground transport use – down 15.9 percent in 2019 and accounting for roughly half of the overall decrease. Of the individual countries for which data has been published, Spain has shown the largest decrease compared to 2019, as of September 30.
The health pandemic was one of the primary reasons why carbon emissions have dramatically fallen so far in 2020, but with the election now over, President-Elect Joe Biden looks to implement numerous policies which, if passed, should accelerate the “green revolution” in a significant way.
Biden has promised to rejoin the landmark Paris climate agreement on his first day in office, reversing the withdrawal orchestrated by President Donald Trump. He’s also called for the U.S. to have net-zero emissions by 2050, which would make it the last Group of Seven nation to set such a target.
With that in mind, a newly listed public company could not have timed entering the lithium space any better. ION Energy (TSX-V: ION) looks to be Mongolia’s emerging leader in lithium exploration and development in the years to come. The management team, led by Ali Haji, has certainly inserted a very compelling asset to drive its growth and valuation in the years to come.
The company owns the Baavhai Uul Lithium Brine Project, which represents one of Mongolia’s largest exploration licences, which happens to be one of the first lithium brine licences ever granted and the largest exploration licence in Mongolia.
The company owns the project 100%, with the land package covering an area of approximately 81,758 hectares located in the southeastern region of Mongolia.
I want to be clear, ION is a very early stage company and is in the start-up phase of the company’s development, but I believe this is a very exciting time to be a follower of the story as the company has very aggressive exploration plans for the remainder of the year and into 2021.
In fact, on October 21st, the company announced the commencement of a geophysics (CSAMT and reflection seismic) study on their project which should generate some extremely prospective drilling targets.
The geophysics program is specifically designed to progressively identify and map brine aquifers as potential targets for a series of drill tests.
See the below photo, which is the proposed work plan area and coverage:
Historically, the project has produced some great exploration drill holes as they had significant levels of lithium with an average grade of 426 ppm lithium with a maximum grade of 811 ppm lithium. The project also has a very promising geological profile with low potassium and magnesium ratios, aquifers that are not far from surface, a brine source vs. hard rock, and high evaporation rates in the Gobi Desert.
As highlighted in our ION Energy infographic, the company is driven by five core themes:
- A strong leadership team
- A proven track record of success
- Untapped potential in Mongolia
- Strategic location, next to China… controls the majority of lithium processing capacity
- Fully financed for an aggressive exploration program
ION has a very distinctive advantage over its peers within the industry. If the company successfully proves up an economic lithium deposit, it should demand more of a premium within the marketplace given where it is situated geographically.
The project is located 24km from the Chinese border. As many of my subscribers know, China is the world leader in manufacturing lithium batteries, so if the company is successful, the infrastructure is close by to help accelerate the progress of this asset.
The large land package is highly prospective for lithium brine. Early exploration work consisted of sampling work done by the Technical University of Mongolia.
This work consisted of 2 pits drilled by hand auger within dry lake areas of the project. Li-8 and Li-11 drilling locations produced 11 samples that produced assay results as illustrated below:
As seen above, all holes indicate significant levels of Lithium. After the geophysics program is complete, the highly anticipated drill program will begin.
It is important to note that the company owns a truck-mounted auger rig that is currently on site and can drill down 20 meters, allowing the sampling of shallow lithium brine.
This upfront investment highlights the company’s confidence in its long-term growth strategy and will serve as a significant catalyst for the company as it will allow the company to freely utilize the rig to drill in search of shallow lithium brine.
With the rig being owned by the company it can do so aggressively.
If you haven’t done so, I highly encourage my readers to read the Q&A I did with Mr. Haji last month (click here to read)
I will be doing another interview with him in the coming month for another general corporate update.
I encourage my readers to visit the company’s website and review its corporate presentation here.
The company trades on the Toronto Venture Exchange under the ticker ION with a present market capitalization of C$15 million dollars.
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