{"id":105780,"date":"2017-05-08T15:25:21","date_gmt":"2017-05-08T19:25:21","guid":{"rendered":"http:\/\/countingpips.com\/?p=105780"},"modified":"2017-05-08T15:25:21","modified_gmt":"2017-05-08T19:25:21","slug":"lico-energy-metals-lithium-cobalt-rolled-into-1-company","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/05\/lico-energy-metals-lithium-cobalt-rolled-into-1-company\/","title":{"rendered":"LiCo Energy Metals, #Lithium & #Cobalt Rolled into 1 Company!"},"content":{"rendered":"
May 8, 2017<\/div>
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By\u00a0Peter Epstein, CFA, MBA \u00a0 epstein.peter4@gmail.com<\/a> \u00a0 http:\/\/EpsteinResearch.com<\/a><\/strong><\/p>\n

Dwayne Melrose<\/span><\/strong>\u00a0is a Director & Chair of the Technical Committee for\u00a0LiCo<\/span>\u00a0Energy Metals\u00a0[TSX<\/span>-V:\u00a0LIC<\/span>\u00a0\/\u00a0OTCQB<\/span>:\u00a0<\/strong>WCTXF \/ Frankfurt: 43W1]<\/strong>. \u00a0<\/span>I interviewed Dwayne by phone and email in the week ended May 5th.\u00a0\u00a0While the interview focused a bit more on the Company\u2019s Lithium project in Chile, the Cobalt opportunity in Ontario, Canada is exciting as well, and LiCo is funded to actively advance both projects.\u00a0\u00a0Here\u2019s a great\u00a0infographic<\/a>\u00a0on the Company.<\/span><\/p>\n

\"\"<\/p>\n

Dwayne, thank you for your time.\u00a0 Let\u2019s start with your background, can you summarize 30 years into 1 or 2 paragraphs.<\/strong><\/p>\n

Sure, no problem.\u00a0 I have over 30 years\u2019 experience in the mining industry, where I\u2019ve worked all over the world and in a wide range of capacities.\u00a0 Boiling it down though, I\u2019m a project developer.\u00a0 For example, as President & CEO of\u00a0True Gold Mining Inc., [2011-2015] my team advanced the company from exploration (pre<\/span>-PEA) into a fully permitted and financed company (raising over $200 M in equity\/debt<\/i>) in just over 3 years.\u00a0 I spent 20 years with\u00a0Cameco Corp\/Centerra Gold\u00a0working in Canada, the U.S., Kyrgyzstan & Kazakhstan (uranium capital of the world<\/em>). \u00a0\u00a0In the Kyrgyz Republic I led the team at the Kumtor Gold Mine responsible for the discovery of the SB Zone, which significantly increased the mine\u2019s reserves and resources.<\/p>\n

I know my way around all aspects of exploration and development.\u00a0 I especially like projects with the potential to be developed in a matter of a few years, not the 5-10 years it takes to develop a gold or uranium mine these days.\u00a0 That\u2019s why I was drawn to\u00a0LiCo\u2019s<\/span>\u00a0lithium brine project in Chile, there\u2019s real potential to be able to dramatically\u00a0de<\/span>-risk that project.\u00a0 The region has a skilled mining workforce, mining services and equipment.\u00a0 Our camp is nearby two of the largest lithium producers on the planet, so it has a lot going for it. \u00a0NOTE: \u00a0{read\u00a0full bio here<\/a><\/em>}.<\/p>\n

Thanks, that was great.\u00a0 Can you give readers a brief overview of LiCo Energy Metals?<\/strong><\/p>

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Yes, as the name suggests, LiCo Energy Metals is focused on two energy metals, Lithium (\u201cLi\u201d) and Cobalt (\u201cCo\u201d).\u00a0 We have control or ownership interests in 4 primary assets; our flagship Purickuta Project, an option on a Li brine exploitation concession in the famed Atacama salar in Chile, 2 interesting Li prospects in Nevada and the\u00a0Teledyne Co project in Cobalt, Ontario. We have funds earmarked for all projects, but by looking at our press releases, one can see our main interest at this time is Chile and Canada.<\/p>\n

\"\"<\/p>\n

How did you find\u00a0LiCo<\/span>, or did the Company find you?\u00a0<\/strong><\/p>\n

Yes, well I guess the Company found me.\u00a0 I had been speaking with key shareholders at the end of last year, waiting to hear more about various projects under consideration.\u00a0 As mentioned, the lithium play in Chile won me over.\u00a0 Of course, the Company has promising cobalt properties in one of the best jurisdictions (outside of the Democratic Republic of Congo)\u00a0<\/i>to find cobalt.\u00a0 I\u2019ve been impressed at how rapidly we have been able to move the ball forward on our projects.\u00a0 That\u2019s something that attracted me as well, the corporate culture of getting things done and being properly funded to work quickly and efficiently.\u00a0 My skill set allows me to cover a lot of bases on the technical side, which is what I\u2019m best at.<\/p>\n

In Chile you have an option on an exploitation concession, surrounded on all sides by Chile\u2019s SQM and nearby the operations of another Li giant, Albemarle.\u00a0 There are few publicly-listed Li juniors in Chile, but over 20 in Argentina.\u00a0 Why aren\u2019t other juniors pursuing Chile as actively as they are Argentina?\u00a0<\/strong><\/p>\n

That\u2019s a great question, one on the top of my list when I signed on with LiCo.\u00a0 There certainly is uncertainty with regard to a junior (ourselves included<\/em>) being able to advance a project in Chile.\u00a0 We understand that and accept that risk because the potential reward is quite large.\u00a0 Doing business in Chile is challenging, but no more challenging than in many other countries I\u2019ve worked in.\u00a0 There\u2019s a perception that there\u2019s no room for juniors in Chile because SQM and ALB are such major players in the space.\u00a0 But, we believe there\u2019s always room for more than 2 players.\u00a0 If we\u2019re right, then we have a seat at the table in the single best lithium producing jurisdictions in the world.\u00a0 And, we\u2019re not just sitting around waiting for the overall Chile\/Li\/junior story to pan out, we\u2019re actively involved with boots on the ground and planned exploration activities that are pre-funded.<\/p>\n

\"\"<\/p>\n

You bring up a good point about Argentina.\u00a0 Of course Argentina will be a major player in Li supply going forward.\u00a0 Chile is already a major force and will remain so.\u00a0 Argentina is getting saturated with Li juniors (still plenty of Li to be found and harvested, still a great story, but crowded with juniors<\/i>).\u00a0 We feel strongly that there will be Li winners from among the ranks of juniors in Argentina, winners in Chile, in Nevada and parts of Canada and Australia\u2026. But only the strong will survive in coming years.\u00a0 Funding is key, and we are in good shape on that front.<\/p>\n

Please tell us more about the Purickuta Project.<\/strong><\/p>\n

Yes, this is currently our flagship project, and we\u2019re looking to lock down additional property in Chile, both Li and Co targets.\u00a0 I love this project and I\u2019m happy with how it\u2019s progressing.\u00a0 I just returned from a 10-day trip, and I\u2019m impressed with the mining \/ minerals culture in the Atacama salar region.\u00a0 In the nearby community that we will be working with, something like 75% of the jobs are at either SQM or Albemarle, so again, skilled labor will not be a problem.\u00a0 Equipment & Infrastructure?\u00a0 Not a problem.<\/p>\n

We have an exploitation concession, which is different then an exploration concession.\u00a0 So, we believe that we will be able to advance the project relatively quickly.\u00a0 With that in mind, we already\u00a0contracted a firm to do a detailed Transient Electromagnetic (TEM) geophysical survey that should provide detailed information on the depth and possible thickness of brine bearing aquifers to enable optimal drill target selection. Subject to receipt of permits, drilling to depths of up to 350 m will commence shortly thereafter, followed by an engineering & hydrological study that will include flow testing, porosity measurements and an assessment of aquifer potential.<\/p>\n

We believe, subject to permitting, this work could lead us to a maiden resource in a year or less.\u00a0 Technically speaking, drilling a prospect Li brine deposit is straightforward, a lot easier than chasing narrow vein gold deposits!\u00a0 We will continue to deliver updates on our Phase 1 exploration program at Purickuta, so readers should\u00a0stay tuned<\/a>.<\/p>\n

Can you update readers on the Teledyne Cobalt project?\u00a0<\/strong><\/p>\n

\"\"<\/p>\n

Yes, look\u2013 an estimated $25 million (inflation-adjusted) was invested onsite prior to our arrival, there are underground workings, 600 hectares, the project is in one of the best jurisdictions outside of Africa and China.\u00a0 A detailed NI 43-101\u00a0Technical Report<\/a>\u00a0was delivered in September 2016.\u00a0 The property is on-strike with a prolific past producing mine.\u00a0 The property adjoins claims that hosted the\u00a0Agaunico Mine. From 1905 through to 1961, Agaunico reportedly produced 4,350,000 pounds of cobalt and 980,000 oz. of silver worth hundreds of millions in today\u2019s dollars and spot prices.<\/p>\n

LiCo Energy Metals reported that it has commenced a Phase One exploration program on the Teledyne Property.\u00a0 A geophysical survey has been completed.\u00a0 It covered areas that have had little to no exploration work to further identify prospective mineralized targets to depths of up to about 300 m or greater.\u00a0 This work, along with the historical data that is currently being compiled, will be evaluated in advance of a diamond drill program planned to commence in late 2nd qtr\/early 3rd qtr.\u00a0 We have a lot of good information on our website about the\u00a0Teledyne project<\/a>.<\/p>\n

Experts like Simon Moores, Joe Lowry & Chris Berry do a great job informing investors about green energy-tech metals.\u00a0 Do you have a view on the market fundamentals for these metals? \u00a0<\/strong><\/p>\n

When it comes to the global paradigm shift towards green energy high tech Li-ion batteries, I leave it to the experts you mentioned and others.\u00a0 We follow their work, and they seem to agree that demand for both Li and Co will be very strong.\u00a0 This chart tells me all I need to know about the underlying strength in Cobalt, half of world-wide production and reserves are from (in) the Democratic Republic of Congo.\u00a0 Even if supply from the DRC can be sustained, global corporations like\u00a0Tesla Inc. will presumably go to great lengths to source Co from any other place on earth!<\/p>\n

\"\"<\/p>\n

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Are there misconceptions about LiCo Energy Metals that you would like to address or final thoughts to leave us with?\u00a0<\/strong><\/p>\n

I really think that it might be a misconception that Chile is not open for business to juniors.\u00a0 If Chile is a primary factor in keeping readers away from a company like LiCo Energy Metals, that might be a mistake.\u00a0 Every jurisdiction has its own set of opportunities and challenges.\u00a0 If we successfully move forward, we will be doing so in the single best salar on the planet.\u00a0 So, readers should certainly diversify; own Li \/ Co juniors in other jurisdictions, but it probably makes sense for risk tolerant investors to have exposure to Chile as well.\u00a0 To add to that, getting exposure to both Li and Co, in a single company, is rare and something to consider.<\/p>\n

Thank you so much for your time and thoughtful answers to my questions.<\/strong><\/p>\n

\"\"<\/p>\n

Disclosures<\/u>: The content of this interview is for information purposes only. Readers fully understand and agree that\u00a0nothing\u00a0contained herein,\u00a0written\u00a0by Peter Epstein, about\u00a0<\/em>LiCo Energy Metals,\u00a0<\/em>including but not limited to, commentary, opinions, views, assumptions, reported facts, calculations, etc. is to be considered, in any way whatsoever, implicit or explicit investment advice. Further,\u00a0nothing\u00a0contained herein is a recommendation\u00a0or solicitation to buy, hold or sell any security. The content contained herein is not directed at any\u00a0individual or group. Peter Epstein and\u00a0<\/em>Epstein Research<\/a>\u00a0[ER]\u00a0are not\u00a0responsible, under any circumstances whatsoever, for investment actions taken by the reader.\u00a0Peter Epstein and \u00a0[ER]\u00a0have never been, and are not currently, a registered or licensed financial advisor or broker\/dealer, investment advisor, stockbroker, trader, money manager, compliance or legal officer, and they\u00a0do not\u00a0perform market making activities. Peter Epstein and\u00a0[ER]\u00a0are not\u00a0directly\u00a0employed by any company, group, organization, party or person.\u00a0The shares of\u00a0<\/em>LiCo Energy\u00a0are highly speculative, not suitable for all investors. Readers understand and agree that investments in small cap stocks\u00a0can result in a 100% loss of invested funds. It is assumed and agreed upon by readers that they will consult with their own licensed or registered financial advisors before making any investment decisions.<\/em><\/p>\n

At the time this article was posted, Peter Epstein owned shares of\u00a0<\/em>LiCo Energy\u00a0(purchased in open market)\u00a0<\/em>and the Company was a sponsor of<\/em>\u00a0Epstein Research<\/a>.\u00a0Readers understand and agree that they must conduct their own due diligence above and beyond reading this article. While the author believes he\u2019s diligent in screening out companies that, for any reasons whatsoever, are unattractive investment opportunities, he cannot guarantee that his efforts will (or have been) successful.\u00a0Mr. Epstein &\u00a0[ER]\u00a0are not responsible for any perceived, or actual, errors including, but not limited to, commentary, opinions, views, assumptions, reported facts & financial calculations, or for the completeness of this article or future content. Mr. Epstein &\u00a0[ER]\u00a0are\u00a0not expected or required to subsequently follow or cover events & news, or write about any particular company or topic.\u00a0Mr. Epstein and\u00a0[ER]\u00a0are not experts in any company, industry sector or investment topic.\u00a0<\/em><\/p>\n

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By\u00a0Peter Epstein, CFA, MBA \u00a0 epstein.peter4@gmail.com \u00a0 http:\/\/EpsteinResearch.com Dwayne Melrose\u00a0is a Director & Chair of the Technical Committee for\u00a0LiCo\u00a0Energy Metals\u00a0[TSX-V:\u00a0LIC\u00a0\/\u00a0OTCQB:\u00a0WCTXF \/ Frankfurt: 43W1]. \u00a0I interviewed Dwayne by phone and email in the week ended May 5th.\u00a0\u00a0While the interview focused a bit more on the Company\u2019s Lithium project in Chile, the Cobalt opportunity in Ontario, Canada […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-105780","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/105780","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=105780"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/105780\/revisions"}],"predecessor-version":[{"id":105783,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/105780\/revisions\/105783"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=105780"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=105780"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=105780"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}