LTH.V Lithium Ionic, adding drills to their 30k meters of fully funded exploration in Brazils high-grade lithium camp.

Due Diligence by Doc Jones, Resource Investor, Hunting for Exceptional returns.

The company is driving towards defining a resource by year end, if successful the economics are outstanding as proven by their neighbours CBL (Private Producer) and Sigma Lithium $2.8 Billion MC

Whats important is tons and grade. Lithium Ionic has the reasonable potential to prove up 20mt in the near term and more throughout 2023 at equiv grade/width as their neighbours. Bankable economic studies have shown by their neighbours illustrate 20mt generates a NPV5 of over $1.7 billion usd for the ultra low cap ex of $130 million usd. With a 17yr mine life using $1900/ton lithium, current spot price is over $5000/ton.

Success is ultra-low cap ex for decades of ultra-high returns. Infrastructure, roads, hydropower, low labour cost, port access located in a proven jurisdiction that has fast/easy permitting and government support for exporting of concentrate to multiple end markets makes LTH.V very attractive for speculative investment capital.

The Company has a tight share structure, over $15 million in cash to advance and multiple km of anomalies to drill.

Peers such as SIGMA and CBL offer comps to evaluate others, discount applied, premiums given depending on specifics.

"Drilling continues to prove size and grade potential at Galvani with potential to quickly build 15 – 20 Mt LTH announced results from the hole #2 located ~100 m NE along strike of previously released hole #1 (24.9 m at 1.57% Li2O) and up-dip of a historic hole OLDD-003 (12 m at 1.78% Li2O). Significant intercept from hole #02: 42.05 m at 1.17% Li2O, incl. 11.72 m at 1.95% Li2O. The intercept starts near-surface (11.3 m down hole or ~6 m below surface). This intercept confirms a widening of extension of mineralization to surface and confirms management’s geological understanding of the mineralization. The Galvani property is located less than 4 kilometres from Sigma Lithium’s Xuxa deposit (over 17Mt grading 1.55% Li2O M+I). For comparison, Xuxa’s widths are in the range of 15 – 20 m. Galvani’s drilling to date (incl. historic) indicates potential for better widths and comparable grade. The Company is currently undertaking a 900 metre (7 hole) drill program as well as an extensive trenching program in proximity to an approximately 700 meter strike extent of pegmatite on the Galvani claims. At these widths, LTH should be swiftly able to build large tonnage. The potential open-pit economics should look compelling with at-surface and wide mineralization with potential for higher grades deeper. 5 holes pending assays from Galvani. LTH’s assets are located in a jurisdiction that has recently been designated a tax-free lithium zone. CBL, a private Brazilian company, has been producing lithium concentrate and hydroxide for +30 years and Sigma Lithium ($2B mkt cap) is expected to start producing next year. Sigma has an offtake agreement with LG which demonstrates the ability of the spodumene in this region to produce battery grade concentrate. Compelling Risk Reward: LTH’s market cap is ~$130M with +$15M in cash. Sigma Lithium was able to go from staking to production in ~6 years and now sports a $2B valuation. LTH’s near-term goal is to prove up 20Mt over the next 6-12 months which would allow it to produce a PEA/PFS shortly thereafter. Assuming success, we believe, would support a $5-10 stock price."

This is exploration so understand it's high-risk.

Doc Jones https://ceo.ca/@drjimjones Podcast is not Investment advice

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