Nevada’s Pure Energy Minerals, Next U.S. Lithium Producer?

TM editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence. 

Pure Energy Minerals — all over the Nevada lithium scene, before anyone ever heard of a, “giga-factory”

Pure Energy Minerals (TSX-V: PE) / (OTC: HMGLF) / (Frankfurt: AHG1) is the second most advanced Nevada (NV) lithium junior. The Company is advancing its Clayton Valley Project, one of very few brine-based lithium projects outside of South America. In my opinion, the dozen or more juniors owning, controlling, optioning or attempting to earn into prospective lithium-bearing property in NV, are 24-36 months behind. The Company has assembled a land package of just over 9,300 acres next door to the only producing lithium brine mine in North America. Pure Energy has been entirely focused on Esmeralda County, NV lithium opportunities since 2013. 

With the exception of Western Lithium, only one other NV junior has completed meaningful exploration work. Like Pure Energy, Dajin Resources is one of the earlier lithium settlers in the State. Based on press releases by Dajin, it is probably 12-18 months ahead of the pack.

Pure Energy stands out by having delineated a NI 43-101 compliant Inferred Resource of 816,000 Metric tonnes Lithium Carbonate Equivalent (LCE). This Spring, the Company plans to deliver an updated resource report followed by a Preliminary Economic Assessment (PEA) several months later. The Clayton Valley project, adjacent to Albemarle Corp’s Silver Peak brine operation, has made great strides towards possibly becoming the nation’s next source of lithium. 

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By contrast, most new entrants have barely moved the ball forward. Admittedly, a select few presumably have favorable attributes, cheap stocks or attractive long-term call option value. Pure Energy is different, it has de-risked its project a lot compared to peers. Make no mistake, investments in aspiring lithium companies, including Pure Energy, are highly speculative. Still, I strongly believe that the Company’s current valuation offers investors a compelling risk adjusted investment opportunity. 

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Disclosures: Many of the companies mentioned have small market caps, including Pure Energy Minerals. Small market cap stocks are ...

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Corey Gaber 3 years ago Member's comment

Reads like a press release.