Lithium Corporation Chairman and CEO, Tom Lewis Provides a Mid-Year 2013
Update to Shareholders
RENO, Nev. -- July 11, 2013
Tom Lewis, Chairman and CEO of Lithium Corporation (OTCBB: LTUM), a junior
mining company focused on creating shareholder value through the discovery and
development of lithium, graphite, and related mineral resources is pleased to
provide an update on the Company’s progress and recent developments.
We have reached the halfway point of 2013, a challenging year for most junior
mining companies. Yet, while most mining companies in the lithium and graphite
space are facing severe challenges due to conditions involving lack of funds,
political issues (South America), delays and/or expenses related to
permitting, LTUM is using this time to expand our portfolio of projects and
delineate Fish Lake Valley, our premier lithium property. We are also very
excited to report our entry into the exploration and development of graphite
with our recent acquisitions of graphite properties in 2013.
As CEO of Lithium Corporation, I would like to describe our progress and
recent developments. The mining industry is currently knee-deep in a cyclical
trough, not unlike what any industry experiences from time to time. As we wait
for a recovery, we are using this time to identify new properties and expand
on the properties already in our portfolio. We differ from many other junior
exploration mining companies in that our balance sheet is strong, allowing
Lithium Corporation to identify, analyze and act upon opportunities. Moving
forward, our goal is to position the Company to create value that should
ultimately lead to a much higher stock price.
THE IMPORTANCE OF LITHIUM: As most of you know, lithium is used in a variety
of applications, such as ceramics, glass, lubricating greases, metallurgy, and
electronics to name a few. Lithium-ion batteries, due to their high charge
capability, lighter weight and recharging ability, have become a vital element
in the increasing demand for electronic devices and, recently, electric cars.
PROJECTED GROWTH OF LITHIUM: Although the overall demand for lithium has been
relatively steady over the past few years, demand for lithium used in
lithium-ion batteries is predicted to grow 10-25% per year. Growth in the last
few years is due primarily to the continued high worldwide demand in handheld
computers, tablets, cell phones, and other electronic devices that use
lithium-ion batteries. We believe the demand will accelerate once the electric
car market takes stride. Based on some new estimates, we should begin to see a
lift in demand by the end of this year, with a strong build for several years
To date, the production of lithium worldwide has been ample to meet demand.
Most production comes from mines in China, Argentina, Bolivia, Chile and
Australia. Currently, there is only one lithium production facility in North
America located at Silver Peak, Nevada, approximately 20 miles from Fish Lake
Valley. Over the next 2-5 years, additional production facilities are expected
to come on line, which could meet near-term demand. Although it is difficult
to predict longer term, some prognosticators anticipate that demand for
lithium could out strip production by the year 2020, creating a possible
shortage of lithium.
ELECTRIC CARS: In 2007 oil prices hovered around $140 per barrel, pushing
gasoline prices to record levels around the world. This led to the “green”
movement and a focus on producing automobiles less reliant on fossil fuels.
Many predictions included an increasing demand for hybrid and all-electric
cars, leading to a high demand for lithium-ion batteries and ultimately
concerns that there could be a shortage of lithium by 2012. Unfortunately,
these predictions did not hold true, as the worldwide recession softened the
demand, and oil prices dropped to more affordable levels.
We are now seeing new demand for electric vehicles, as witnessed by the
surprisingly good results at Tesla Motors. If you happen to have a Tesla store
nearby, I encourage you to stop by for a visit.
Fish Lake Valley Property: At the Company’s flagship Fish Lake Valley
property, a lithium/boron/potassium anomaly has been discovered using
near-surface auger sampling, and more recently by sonic drilling. The drilling
programs have outlined a lithium anomaly of 450 meters by 750 meters, which is
not yet fully delimited. Lithium values in this zone averaged 47.05 mg/L,
ranging from 7.6 up to 151.3 mg/L. In addition, our most recent drilling
program delineated boron and potassium values averaging 992.7 mg/L and 0.535%
This concentration of lithium-in-brine is comparable to the grade of the
deposit currently being exploited at the Silver Peak operation, located nearby
in Clayton Valley. Silver Peak is currently the only lithium-in-brine
operation in North America. Silver Peak is owned by Rockwood Holdings and has
been in operation since 1965.
Lithium Corporation currently has 40 claims covering 3,200 acres. This
includes an additional four strategic claims that were acquired in January,
2013, totaling an additional 320 acres. The Fish Lake Valley claims are
federal unpatented mining claims, with no underlying royalties. The Company’s
drilling contractor has indicated that there is a window of availability in
late July, and we anticipate operations to recommence at this point.
San Emidio Property: The Company’s San Emidio property is located in Washoe
County, Nevada and comprises 20 claims totaling 1,600 acres. Our 2011 drilling
program identified lithium values as high as 84 mg/L, along with high calcium
and potassium values, and moderate boron and magnesium values. Additional
drilling programs are scheduled in 2013.
BC Sugar Property: In June, 2013, we acquired the BC Sugar property. BC Sugar
is located in the Shuswap area in British Columbia, Canada, and totals
5,031.97 acres (2036.366 hectares). Some graphitic rocks have been known to
occur in the general area previously, but the Sugar Lake discovery is a new
occurrence of flake graphite in quartz, biotite mica gneiss, marbles, and also
in calc-silicate gneissic rocks in this locale. The host rocks at BC Sugar are
similar to the host rocks in the area of the Crystal Graphite deposit, which
is approximately 55 miles (90 kilometers) southeast of the project area.
We have mobilized a crew to the BC Sugar property where work is presently
ongoing. Although it is somewhat premature, we are very excited about the
potential of BC Sugar as some of the early findings have identified high
quality natural large flake graphite, also known as “battery” grade graphite.
Mt Heimdal Property: The Mt Heimdal property is comprised of three (3)
mineral claims, which encompass 2,582 acres (1,045 hectares) of highly
metamorphosed rock. The property is roughly six miles (10 kms) South of Eagle
Graphite Corporation’s Black Crystal quarry, and is located within the same
rock sequence of gneiss, graphite mineralized marble, and graphitic
calc-silicate gneiss. Data from BC Geological Survey assessment reports
indicate that mineralization grading up to 4.8% graphitic carbon may be
located on the property. Preliminary work is now complete on the eastern areas
of the property, where graphitic rocks were encountered. The company is
presently waiting on analytical results from this work phase.
WHY GRAPHITE? Over the last few months, we have had a few enquiries wondering
why we are expanding into graphite properties. High purity graphite is
presently the most widely used anode material for lithium ion battery
technology. Typically, greater than ten times more graphite than lithium is
used in lithium ion battery production. In addition to increased graphite
consumption due to growth in lithium-ion batteries sales, carbon fiber
composites are increasingly being utilized in auto, and aircraft construction,
which requires graphite material. Also, there is considerable ongoing research
into graphene, a flake graphite product, and it is possible a myriad of new
applications or uses of graphite will ensue as a direct result of this work.
BALANCE SHEET: We are pleased to confirm to our shareholders that we have
ample funds to continue to identify and acquire lithium and graphite
properties and cover any general and administrative expenses over the near
term. This is extremely important, as we are not dependent on dilutive
additional funding when our stock price is hovering at today’s low levels. At
some point in the future, we will require additional funds to advance our
premier properties toward post exploration and development stages. We hope
this can be accomplished when our stock price is much higher allowing for
limited future dilution.
As of June 30, 2013, Lithium Corporation has a cash balance of approximately
$1,025,000 and zero debt. Our accounts payable approximates $22,000, of which
a majority will be paid within the first two weeks of July. We have doubled
the number of properties and expanded our position at Fish Lake Valley within
our asset portfolio since the end of the 2012. Our recent graphite
acquisitions were negotiated at very reasonable prices well below what we
believe they are worth. We hope to add additional lithium and graphite
properties as opportunities arise due to weakened market conditions. This
should ultimately strengthen our balance sheet even further.
We pride ourselves on not spending our precious funds on excessive and
needless expenses. We don’t pay executive salaries and our general and
administrative expenses are minimal. Other than exploration costs, our highest
expenses are related to legal and accounting, which are required for all
public companies. As CEO, I spend a good portion of my time in the field
looking for new exploration opportunities and expanding the ones we already
ALTURA RELATIONSHIP: In November, 2012, we announced a strategic relationship
with Altura Mining Limited (Altura, ASX - AJM). Altura is an Australian-based
company engaged in exploration for coal, iron ore, lithium and other minerals
on its tenements located in Australia and Indonesia.
Altura’s Pilgangoora lithium project, located in the Pilbara region of Western
Australia has been identified as a world class high grade hard rock lithium
project. The project has been significantly increased in size in the last 12
months, and positive project development scoping studies are progressing.
Altura also has a one-third interest in the operating 1.5mtpa Delta Coal mine
in Indonesia, and is progressing its Tabalong coal projectin South Kalimantan
to final approvals stage. Altura’s 30% interest in theMt Webber iron ore
project(joint venture with Atlas Iron Limited – ASX: AGO) in the Pilbara
region of Western Australia is planned to commence production in early 2014 at
an initial production rate of 3 Mtpa.
Altura’s investment in Lithium Corporation provides Altura an initial toehold
in the North American mining and exploration market. We highly value our
relationship with Altura and their wealth of knowledge and experience, and
look forward to a much stronger relationship in the years to come.
Lastly, I know it has been difficult to watch our stock price languish at such
low levels. As one of the largest shareholders of the company, it is
frustrating to witness the lack of interest in Lithium Corporation and mining
stocks in general. Almost daily, we receive calls from investment relations
(IR) firms who prey on companies faced with a low stock price and disappointed
shareholders. Although it is tempting to hire an IR firm to create exposure to
our stock, we do not believe such action will create value in the long term
due to the current low interest in mining companies, particularly lithium and
graphite exploration companies.
I encourage shareholders to visit our website for updates on our progress. For
further information please contact Andy Dewey at Lithium Corporation at (775)
410-2206 or via email at email@example.com. We appreciate our
shareholder’s trust and patience during these trying times.
Chairman and CEO: Lithium Corporation
About Lithium Corporation
Lithium Corporation is an exploration company based in Nevada devoted to the
exploration for new lithium resources within the Great Basin. The Company
explores and develops potentially economic lithium-enriched brine fields, with
an eye to becoming a long-term producer of this increasingly strategic and
economically important commodity. In keeping with its focus on producing
materials for lithium ion battery manufacture, the Company now currently has
two active graphite prospects in BC – the Mount Heimdal prospect & the BC
Sugar property, and anticipates working on both this summer.
Notice Regarding Forward-Looking Statements
This current report contains "forward-looking statements," as that term is
defined in Section 27A of the United States Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. Statements in this press release
which are not purely historical are forward-looking statements and include any
statements regarding beliefs, plans, expectations or intentions regarding the
future, including but not limited to, any mineralization, exploration and
development of our mineral properties, specifically in regards to any future
Actual results could differ from those projected in any forward-looking
statements due to numerous factors. Such factors include, among others, the
inherent uncertainties associated with mineral exploration and difficulties
associated with obtaining financing on acceptable terms. We are not in control
of minerals prices and these could vary to make development uneconomic. These
forward-looking statements are made as of the date of this news release, and
we assume no obligation to update the forward-looking statements, or to update
the reasons why actual results could differ from those projected in the
forward-looking statements. Although we believe that the beliefs, plans,
expectations and intentions contained in this press release are reasonable,
there can be no assurance that such beliefs, plans, expectations or intentions
will prove to be accurate. Investors should consult all of the information set
forth herein and should also refer to the risk factors disclosure outlined in
our most recent annual report for our last fiscal year, our quarterly reports,
and other periodic reports filed from time-to-time with the Securities and
Andy Dewey, 775-410-2206
Press spacebar to pause and continue. Press esc to stop.