Doug Cole, chief executive of LithiumOre, a wholly owned subsidiary of Oroplata Resources Inc (OTCQB:ORRP), wrote a letter to shareholders Thursday saying securing 26,000 acres in the Railroad Valley Western Nevada Basin was a milestone in 2018 and set up the explorer for explosive growth.
LithiumOre is a resource exploration and development company whose top focus is the establishment of a low-cost, environmentally sound production base to supply the rapidly growing lithium-ion battery industry for both mobile devices and laptops, as well as the burgeoning electronic vehicle industry.
Its focus is on hitting that target through the timely development of valuable production-grade lithium brine deposits in Nevada.
“We own 120 acres, including water rights, which will be utilized as a staging and processing area, within Railroad Valley,” wrote Cole in the letter to shareholders. “Drill program to commence spring 2019, consisting of 10+ wells,” he added.
LithiumOre partner 3PL CEO Vince Ramirez maintains LithiumOre’s Railroad Valley Lithium Project is located at the center of “one of the largest brine deposits in the world.” Ramirez suggests there are “30 billion barrels of brine within the Railroad Valley brine pool.”
“Confirmed 1 million tons of Lithium brine,” wrote Cole. “Confirmed 10 billion barrels of Sodium Carbonate,” he added.
The company will not only extract battery metals from its 26,000-acre land holdings in Nevada but will provide the technology as a service to other neighboring mining companies.
“This simultaneously creates a technology side to our business with an entirely new revenue stream independent of our mining operations and realizes our goal of becoming a fully integrated lithium mining and production company,” Cole had earlier told Proactive Investors.
“We end up as the toll booth for everybody,” Cole said in explaining the way other companies may have to pay them to extract their lithium.
“Ex-Goldman Sachs analyst says we have one of the lowest-cost lithium in the world,” wrote Cole.
LithiumOre's ability to produce lithium will be at less than $2,000 per ton.
Demand for lithium will continue to grow alongside electric cars and high-capacity electric storage.
The supply market for lithium is poised to become tight over the next decade, and that can be seen in its lofty spot price which is hovering at $18,000 per ton.
Contact Uttara Choudhury at [email protected]