Snow Lake Lithium Ann, page-47

A publication of goldinvest.com.
From today, February 11, 2022Translated by deepL-

Snowlake Resources is currently Nova Minerals Limited's (ASX: NVA, FSE: QM3) most important holding. The lithium explorer, which went public in the fall, will be more in the public eye this week in New York, as Snow Lake Resources will shine brightly on the NASDAQ Tower at TimesSquare in New York on Thursday. At the same time, a representative of the company will have the honor of ringing the closing bell on NASDAQ that day.Turning investors' attention once again to the developer of an interesting lithium project is quite appropriate, because since the fall, investor interest, not only in Snow Lake Resources, but in the entire lithium sector, has cooled significantly. One has a bit of an impression that the world's turn towards electromobility has been postponed to an unspecified day in the future.A faster pace, rather than a slower one, is in order, as a new study that uses satellite imagery to determine the size of glaciers had to report this week that glaciers worldwide are probably shrinking even faster than previously thought.Nova Minerals is already well positioned for the next lithium boomThat the movement towards CO2-free energy production will be halted is possible. But this assumption is not very realistic at the moment. Much closer to reality is the risk that numerous lithihum projects cannot be developed because political resistance is too great.At this point, investors' eyes are currently particularly often directed to Chile. Since **riel Boric took over the presidency in December, many lithium projects in the Andean country are facing difficulties because they could be deprived of access to groundwater. Without this, however, the white gold of the 21st century cannot be extracted.For the raw material lithium, Chile is a very decisive location for two reasons: The largest lithium deposits are located in the so-called lithium triangle in the border region between Bolivia, Chile and Argentina. In addition, Chile is already one of the world's largest lithium producers.Political risk is becoming increasingly importantMany of these lithium projects in the Andes are now at risk. However, this will not reduce the demand for lithium. Therefore, it is to be expected that in the future the market will focus, even more than it already does, on those deposits that are not only located in politically stable regions of the world, but are also free of local conflicts.For Snow Lake Resources, these conditions are in place. Its 8,783-hectare Thompson Brothers lithium project in the U.S. state of Manitoba is currently only about three percent explored. However, a resource of 11.1 million tons of rock containing one percent Li2O has already been proven on this three percent. This is large enough to operate a mine with an eight to ten year mine life, which according to current calculations could produce 160,000 tons of lithium concentrate per year.Direct access to the US market and the American automotive industryThis lithium not only has direct access to the important U.S. market, but also to the U.S. automotive industry through the management of Snow Lake Resources. It is hardly likely that Ford, Chrysler and Co. will rely on uncertain lithium supplies from abroad when domestic lithium from a conflict-free region in the USA is available as an alternative.Currently, the stock market is ignoring not only these threats, but also the medium- and long-term consequences that may result. The share price of Snow Lake Resources has therefore had a rather disappointing development since its IPO. However, this is not a cause for concern for Nova Minerals.It is known that the Thompson Brothers project is in good hands with the current management and also the leadership of Nova Minerals can count on the fingers of one hand what will happen when the market realizes that available lithium does not necessarily mean recoverable lithium and starts to react to it. Sooner or later the market's ignorance will give way to a reassessmentNova Mineral's stake in Snow Lake Resources is therefore anything but a falling star, even if the share price seems to give just that impression. Rather, it is an interesting bet on a commodity that will have no way around in the coming years. And at the same time it is a commitment that in the end the secure supply contracts will take precedence over the insecure ones. Nova Minerals recognized these opportunities early on and therefore secured a majority stake in Snow Lake Resources. Sooner or later, the market will also recognize this, indeed it will have to recognize it. If not in the short term, then just a little later.