In the global conversations surrounding sustainable energy solutions to reduce the reliance on fossil fuels, the spotlight has increasingly turned towards lithium. It is a crucial component used in rechargeable batteries powering electric vehicles (EVs) and renewable energy storage systems. Among the players in this dynamic industry, Patriot Lithium Limited stands out as a promising entity, positioning itself as a significant player in the lithium sector. Patriot Lithium Limited (ASX: PAT) (“Patriot Lithium” or the “Company”) is a forward-thinking Company dedicated to the exploration and development of lithium resources. Focusing on sustainable energy solutions (SES), the Company aims to capitalise on the growing demand for lithium-ion batteries, driven primarily by the burgeoning electric vehicle market and the increasing adoption of renewable energy technologies.
Figure 1: Patriot Lithium Limited
Mr Hugh Warner, Chairman and Executive Director of Patriot Lithium Limited, possesses a deep understanding of the lithium industry dynamics. Under Mr. Warner’s leadership, Patriot Lithium is strategically positioning its project portfolio to align with the growing demand for lithium.
In 2023, nearly 14 million new electric cars were registered worldwide, elevating the total number of electric vehicles on the roads to 40 million. A staggering 95% of these vehicles were concentrated in China, Europe, and the United States. Notably, electric car sales surged by 3.5 million compared to 2022, marking a remarkable 35% year-on-year increase.
Figure 2: USA EVs (BEV & PHEV) Sales and Sales Share Forecast: 2021 – 2030
The EV (BEV and PHEV) sales forecast indicates a 29.5% growth in all new car sales by 2030, compared to the expected roughly 3.4% increase in 2021. This projection anticipates sales to surge to 4.7 million units, up from just over 500,000 in 2021. The dynamics of EVs are rapidly evolving, with increasing consumer demand, advancements in battery technology, expanding charging infrastructure, and supportive government policies contributing to the growth of the EV market.
In this scenario, Patriot Lithium is at the forefront of shaping the future EV market with it’s robust portfolio of high-grade lithium assets strategically located across the United States and Canada. Patriot’s major lithium assets are:
Figure 3: North American High-Grade Assets Map of Patriot Lithium Limited
Canadian Lithium Projects (Ontario Lithium Projects):
Total claim holding currently over 1,000 km2 of lithium targets, including:
- The Gorman Project – The Gorman Project covers an area of approximately 354 km2 and is positioned within a burgeoning lithium district adjacent to Frontier Lithium’s (TSXV: FL) prominent PAK lithium project. The PAK project, boasting one of North America’s largest and highest-grade spodumene resources at 58.5mt with 26 mt (M&I) of 1.6% Li2O and 32.5 mt (Inferred) of 1.4% Li2O, underscores the significance of the region
- Forester – The Project comprises 36 mining claims for a total area of 145 km2 with numerous mapped pegmatites
- Birkett: The Project comprises six (6) mining claims for a total area of ~25 km2. It is located immediately west of the Allison Lake Batholith
- The Pak East Project: The Project covers eight (8) multi-cell mining claims for a total area of ~34 km2. It is situated ~33 km E of Frontier Lithium’s PAK deposit
- Dryden Project: The Project encircles the city of Dryden and the community of Vermillion Bay. It covers 38 multi-cell mining claims for a total area of ~161 km2
- Bull Project: The Project is located 165km WNW of Thunder Bay, the populous municipality in NW Ontario. The Bull Project covers 31 multi-cell mining claims for a total area of ~142 km2
- Sydney Project: The Sydney Project covers 6 multi-cell mining claims for a total area of ~61km2. The Project is located ~43 km NE of the operating, globally significant Tanco lithium
USA High-Grade Lithium Projects (Black Hills Lithium Projects):
Total claim holding currently 88 km2, including:
- Tinton West Project: The Tinton West Project is in the northern Black Hills, spanning Lawrence County, South Dakota, and Crook County, Wyoming. Situated 18 kilometres southwest of Spearfish and 72 kilometres northwest of Rapid City, the Project area boasts a strategic location within the region
- Keystone Project: The Keystone Project encircles the town of Keystone, 26 km southwest of Rapid City in South Dakota. It comprises 255 unpatented lode mining claims in four separate blocks that are held 100% by Patriot Lithium
- Wickenburg Lithium Project: The Wickenburg Project is located in Maricopa County, Arizona, approximately 10 km south of Wickenburg. The Project comprises 347 unpatented lode mining claims
On May 9th, 2024, Patriot Lithium announced the settlement of Tranche 1 of its previously announced $2.5 million share Placement. Tranche 2 Placement will be issued upon obtaining the shareholder’s approval at the upcoming general meeting.
Following the Placement, the Company has executed all the significant drilling contracts to commence the maiden drill program at the Gorman Lithium Project. The program indulges the use of an RC rig. The objective of this exploration program is to investigate lithium mineralisation extensions up to a depth of 150 meters as outlined by the Company’s prior disclosure of lithium-rich sawn channel samples, which include:
- 5.0 metres @ 1.7% Li2O (G0 pegmatite)
- 12.8 metres @ 1.3% Li2O (G1 pegmatite)
- 5.0 metres @ 2.0% Li2O (G2 pegmatite)
Figure 4: The Gorman Lithium Project of Patriot Lithium
The Gorman Lithium Project, wholly owned by the Company, is situated along the lithium-rich Bearhead Lake Fault, approximately 50 kilometres from Frontier Lithium’s Pak and Spark Deposit, also located on the Bearhead Lake Fault.
Investor’s Outlook
Patriot Lithium Limited is well aligned with the future lithium demand driven by the rapidly evolving electric vehicles (EVs) market. The Company’s lithium projects’ strategic location provides an edge in the territory of one of the fastest-growing markets. Lithium carbonate prices have surged ~27% since the start of 2024. Mr Hugh Warner is closely monitoring all the developments in the emerging North American battery industry and taking calculative steps to streamline their lithium portfolio. The substantial investments made by major EV players, such as Ford doubling its commitment to USD 22 billion and Volkswagen pledging USD 88 billion, demonstrate the promising future of electric vehicles. Patriot Lithium’s vision of developing lithium assets aligns well with the industry leader’s goals.
The stock price of Patriot Lithium Limited traded at AUD 0.076 per share as of May 9th, 2024. The 52-week range is AUD 0.065 to AUD 0.320 per share. The Company’s market capitalisation was AUD 8.79 million, with shares in issue 115.7 million.
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