Stria: lithium explorer set to ride the wave of the future
Wed 1:05 pm by Fiona MacDonald
proactiveinvestors.com
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Stria ( CVE:SRA) is poised to take advantage of what looks to be one of the strongest emergent minerals markets of the twenty-first century, the market for lithium.
It is a market ripe with potential and likely to go from strength to strength as the technology that requires the metal becomes ever more ubiquitous.
In particular, the mineral's energy storage qualities, due to its greater charge-to-density (power-to-weight) ratio, render it favourable for electronic devices.
Such mainstays of modern life as cellphones, portable computers and tablets all depend on rechargeable lithium batteries, while non-rechargeable lithium batteries are used in such gadgets as calculators, cameras, computers, electronic games, and watches.
Lithium is also used, in greater quantities, in batteries for electric vehicles. Thus, the anticipated uptick in demand for plug-in hybrid electric and all-electric vehicles is expected to increase the call for lithium significantly.
Little wonder then that the U.S. Department of Energy has identified lithium as a critical material. According to a US Geological Survey cited in company materials, as it stands, demand for rechargeable lithium batteries already exceeds that of rechargeable non-lithium batteries for use in cellphones, cordless tools, MP3 players and portable computers and tablets.
According to a 2012 report prepared for the Mining section of Environment Canada, global lithium production came to 25,350 tonnes in 2010, while demand for the putative “holy grail battery material” is expected to rise to over 500,000 tonnes by mid-century.
Indeed, with the element already being stockpiled in deference to the emergent green technology economy, and demand set to spike markedly in the mid-term, particularly as a result of consumption by China and India, the matter of a reliable supply of the key strategic material for North American markets has been pushed to the forefront.
It is into this burgeoning market that the Ottawa-based company seeks to take its place, with a focus on the acquisition of clean tech mineral properties in North America.
With its mission statement of identifying, evaluating, and ultimately acquiring additional properties, the company, which recently commenced operations as a Tier 2 mining issuer, is still on the lookout for promising properties, says president and COO, Julien Davy.
The ex-Osisko geologist emphasizes the need for projects at various stages of development. “We are actively looking for new projects at different stages; we don't want to build everything from scratch.”
Following hard on the heels of mid-December's acquisition of the Pontax lithium property in Quebec that marked the capital pool company's qualifying transaction which transformed Stria into a mining company, the New Year brought another milestone with the announcement of its purchase of 100 per cent of the Willcox lithium project in Cochise, Arizona.
In the company's statement released with that announcement, Stria CEO, Gary Economo, said the purchase of the project, comprised of 61 lode mining claims, provides Stria with “a critical foundation from which to construct a globally competitive enterprise focused on lithium and green energy technology minerals.”
Closer to home is the Pontax lithium property, the company's principal asset located in the west-central James Bay territory, an area known for its lithium occurrences. The property hosts what the company calls “a recently discovered swarm of a dozen spodumene-bearing pegmatite dikes,” with grades in line with nearby lithium projects in advanced stages of exploration.
The Quebec site has other advantages, Davy says, being “20 km from a really major road,” and “adjacent to some huge power lines from Hydro Quebec.” In addition, the jurisdiction is a mining-friendly one, “especially the government side of it” as the province moves to “build the general mining sector”, says Davy.
The Arizona property is at an early stage, according to the president, while plans for the Quebec site are further advanced, moving toward a feasibility stage.
Perhaps most notable and crucial to the company's plans is its proprietary processing technology unveiled earlier this year. The cost-cutting on-site processing technology recovers high purity lithium chloride directly from spodumene ore, with an efficiency that gives the company a competitive advantage.
Among the benefits, fewer controls are required as is less energy due to energy recycling. Capital costs are also reduced via the construction of smaller, more compact processing facilities, while the combination of a simple process and compact design enable easy automation.
"Powering the green revolution from technologies that bring high purity lithium products to market on a cost-competitive basis with lithium brine precipitation producers is critical to our long-term success in the lithium sector," said the company’s chief executive in a recent statement.
"We see technology innovation as the key that unlocks the door for Stria to move into an established global market in tandem with green technology manufacturers seeking low-cost, high-quality lithium chloride, lithium carbonate and lithium hydroxide sourcing options.”
The next steps for the company include seeking financing for further exploration and development, a goal addressed at least in part by the $150,000 raised by way of private placement announced in the first few days of this year. The deal saw Stria issue 405,405 flow-through shares at a price of 37 cents each. |
