pcaruso: the fact that the world’s largest lithium-ion battery electrolyte maker just made an MOU with us is very significant, and, the fact that there are many major companies(mining/battery/car) that have not secured their lithium supply yet tells me that they are just waiting for the right time. Obviously Tianci after approximately half of our first 9 holes were world record intercepts could wait no longer to make an initial move. CATL may more than likely make a move at the time of AVZ's initial JORC to enhance their IPO in June. The more this is drilled out-intercepts/widths, metallurgy, with an enormous expected initial JORC, with tier one tin in addition, the big elephants will come stomping. Tianci put its hoof on the till this week.
They all know that AVZ has the potential to be the largest lithium resource and lowest cost producer, and its owners could therefore potentially control lithium pricing and supply, and are just waiting for more results in my opinion before they commit huge money.
The interesting thing is that companies are not flocking to brine resources(Morgan & Stanley) to meet the coming demand for lithium, and quite frankly I am not surprised. Lithium from brine takes a long time to come on line. There is a long waiting period to produce the product due to the slowness of evaporation, not to mention approval/funding issues. Brine has impurity problems compared to hard rock lithium that make them less suitable for concentration of lithium to battery grade.(AVZ's spodumene readily concentrated to battery grade-1950's data). There is also a delicate balance to try and increase production, but with with increased production there becomes an oversupply of potash; the main product from brine mining. This is not to mention the massive hike in royalties just introduced in Chile which will severely handicap SQM and Albemarle; up to 40% royalty. And those that think that China will bring on new supply from their brine resources(Morgan & Stanley, or should I say for those old enough Laurel & Hardy) have literally got rocks in their head. Their brine resources are inaccessible, thousands of feet up in the mountains, have impurities, and ask yourself why does China import the major amount of their lithium needs, and are seeking foreign hard rock lithium acquisitions and investments!
In summary the road is pointing to AVZ, "The Saudi Arabia of Lithium", and as I said the other day at these bargain prices, and 4 drill rigs on site and soon to be 5 the question should be, can you afford not to take a position in AVZ!