With this kind of interceptions 5.37 g/t (0.16 oz/t) gold across 57.1m (187.3 feet), even management’s games around the new shaping Gold Deposit at Hardrock can not ruin the development – they can provide only buying opportunity, like we had couple of weeks ago. It even looked at one point that Premier Gold will be able to snap both newly combined companies for the price of Roxmark Mines last Fall alone. Management of Roxmark Mines was never the strong hand in the game…apart the fact that they brought Premier Gold as an operator. Game has changed overnight, Roxmark Mines was one of the top stocks with its performance last year and will, hopefully, do the same trick this season with resource estimations scheduled in the Q1 2010.

Goldstone Reports Best Intercept To-Date From Deep Drilling at Hardrock Project
5.37 g/t (0.16 oz/t) gold across 57.1m (187.3 feet)

Press Release Source: Goldstone Resources Inc. On Monday February 22, 2010, 11:33 am EST
TORONTO, ONTARIO–(Marketwire – Feb. 22, 2010) – Goldstone Resources Inc. (TSX:GRC – News; PINK SHEETS:GRSZF – News) today announced that deep step-out drilling at the Hardrock Project, including the deepest hole ever drilled to test the North Zone horizon, has returned multiple zones of gold mineralization including the best intercept drilled to date.
The Hardrock Project is a joint venture with Premier Gold Mines Limited (TSX:PG – News) as operator in which Goldstone holds a 30% carried interest. Drilling there continues to define high-grade gold within several sub-zones within the main North Zone below the bottom level which was historically mined.
Drill Hole MM092, representing the initial hole from which additional wedge holes will be drilled, and hole MM092A (the first wedge hole) have intersected multiple lenses of gold mineralization. Combined the three zones assayed 5.37 grams per tonne gold (g/t Au) across 57.1 metres (m) or 0.16 oz/ton across 187.3 feet, with sub-zone intervals that include 7.79 g/t Au (0.23 oz/ton) across 13.9 m (45.6 feet), 8.92 g/t Au (0.26 oz/ton) across 6.0 m (19.7 feet) and 7.56 g/t Au (0.22 oz/ton) across 16.0 m (52.5 feet). MM092A intersected multiple zones including 7.59 g/t Au (0.22 oz/ton) across 23.3 m (76.4 feet) with a higher grade interval of 11.36 g/t Au (0.33 oz/ton) across 9.4 m (30.8 feet). This drilling tested the North Zone deeper and along strike from initial deep drilling that returned multiple high-grade intersections that include 39.20 g/t Au across 4.8 m, 8.41 g/t Au across 22.9 m and 10.05 g/t Au across 24.2 m, further confirming that the North Zone is wide open for expansion at depth.
“We are pleased with continuing excellent results at the Hardrock Project,” said J. Patrick Sheridan, Goldstone Chief Executive Officer. “They are a strong evidence to support our longstanding belief that the Beardmore-Geraldton camp is underexplored.”
The first seven holes drilled by Premier to test the down-dip potential of the mined portion of the North Zone have all intersected multiple zones of gold mineralization up to 125 metres below the bottom mine level and are profiled on longitudinal section in Figure 1.
To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/hardrockprojectFig1.pdf
The North Zone was previously mined to a depth of 616 metres (2,022 feet) with production of three (3) million tons at a recovered grade of 0.22 oz/ton (7.54g/t Au). The North Zone had been mined along a total plunge length of one kilometre (km) and mineralization has now been extended another 250 m along that plunge below the bottom of the McLeod Mine. For comparison, the F Zone is also open at depth and is indicated in mining and historic underground drilling for over 3.5 km along its plunge
Table 1 summarizes the gold intercepts in holes MM092 and 92A in addition to previously announced results from the first section drilled some 50 metres to the east:

Four drills are currently active at Hardrock, testing both open pit and underground type targets. Several potential open pit zones have been delineated and will be included into a NI43-101 compliant resource estimate that is expected to be completed in the near future (initial open pit resource). Drilling will continue to expand the open pit zones and delineate underground-style zones of mineralization that will be included in an updated resource at the end of the 2010 drill program.
At Hardrock, significant potential exists for developing resources in several areas including:
— Open pit-style mineralization in the main areas, the Tenacity, EP (includes NN) and Kailey Zones. Significant results to-date include 15.97g/t Au across 32.1 m and 4.13g/t Au across 18.9 m in the Tenacity Zone, 5.2g/t Au across 37.0 m and 19.0g/t Au across 11.3 m in the EP Zone, 6.4g/t Au across 22.4 m and 52.9g/t Au across 7.9 m in the NN Zone, and 1.47 g/t Au across 162.0 m and 2.16g/t Au across 92.2 m in the Kailey Zone;

— Underground-style mineralization in the SP Zone where drilling has returned numerous significant intercepts including 6.6g/t Au across 32.6 m and 9.7g/t Au across 11.8 m;

— New high-grade, narrow-vein targets, including the HGN discovery where recent drilling has intersected significant visible gold with intercepts that include 1,141.5g/t Au (33.3 oz/ton) across 2.0 m and 49.8g/t Au across 6.0 m, and potentially three new recently intersected zones where assays are pending;

— Historical (non NI 43-101 compliant) resource blocks that reside within the mine workings; and

— Main mined zones which are open below the 600m Level as tested by holes MM050, MM079 and MM092.
The Hardrock Project is host to several past-producing mines, which collectively produced nearly 3.0 million ounces of gold primarily from shallow depths within 600 metres of surface between 1938-1968. The area benefits from development advantages with the Trans-Canada Highway, Trans-Canada Pipeline, and major power lines running through the center of the property.
Stephen McGibbon, P. Geo., is the Qualified Person for the information contained in this news release and is a Qualified Person within the meaning of National Instrument 43-101. Assay results are from core samples sent to Activation Laboratories, an accredited mineral analysis laboratory in Ancaster, Ontario, for preparation and analysis utilizing both fire assay and screen metallic methods.
About Goldstone:
Formed by late 2009 merger of Ontex Resources and Roxmark Mines, Goldstone Resources is a well funded gold exploration and development company operating in the historically significant Geraldton-Beardmore area of Northwestern Ontario and focused on gold exploration and deposit delineation at its Brookbank, Northern Empire, Leitch-Sand River and Key Lake gold properties in the Geraldton-Beardmore Camp. The Camp is host to several past producers in a district that has historical production of more than 4.1 million ounces of gold.
At a 3.4 g gold per tonne cut-off grade, with assays uncut, drilling has established 1.33 million tonnes grading 9.8 g gold per tonne containing 418,500 ounces of indicated resource and 1.09 million tonnes grading 8.0 g gold per tonne containing 260,000 ounces of inferred resource at Brookbank. (See National Instrument 43-101 technical report -“Technical Report on the Brookbank Gold Deposit, Beardmore-Geraldton Area, Northern Ontario, Canada” by Scott Wilson RPA Inc. dated May 4, 2009, as filed on SEDAR.)
In addition, Goldstone has a 30% carried interest in the Hardrock Project in the Geraldton area, a joint venture with Premier Gold Limited, with Premier as operator. NI 43-101 resource estimates for both open pit and underground resources at the Hardrock Project are expected in 2010. Both Goldstone and Premier will be mounting aggressive exploration programs over the coming year.
Further information is available on the Company’s website at http://www.goldstoneresourcesinc.com/ and on SEDAR under the Company’s profile at http://www.sedar.com/.”

YouTube:

TNR Gold Lithium Corporate Strategy COO Interview with Jay Taylor’s Watchlist

Exploring for Lithium, Rare Earth Metals, Precious & Base Metals across the globe from Argentina to Ireland!
TNR Gold Corp. (TSX-V: TNR) is a minerals exploration company actively exploring a portfolio of properties worldwide for lithium and rare metals. TNR has a strategic balance of both pegmatite and brine projects – pegmatites with the advantage of presence rare metals such as tantalum and niobium, while brines offer the low-cost large scale production of lithium carbonate that will be increasingly important. TNR has secured over 292 squared kilometres of well-known pegmatite belt in Ireland, acquired a past producing tantalum mine area in Northwest Territories never tested for other rare metals, staked USGS-tested lithium brine properties in Nevada around the only current lithium brine producer in North America, acquired 120 squared kilometres of salt lake in Argentina, Mavis Lake, and other properties!
TNR will be actively seeking property development with its proven joint venture model. With rising energy demands and increased reliance on lithium ion technology from hybrid and electric vehicles to portable devices, Green Energy is the trend of the future and these acquisitions are the first of many progressive steps for TNR in becoming a prominent Lithium and Rare Earth Elements explorer.
Our primary focus in Argentina is the exploration and development of three key projects in Argentina: Mariana, El Salto, and El Tapau. We continue to explore our other properties while identifying new quality prospective projects. TNR will strengthen its assets through partnerships with mid-tier and major companies, and establish long-term cash flow through royalty interests and project development.
The Mariana project is a lithium salar in the Salta province of Argentina with good infrastructures and accessible year round. TNR owns the entire salar which presents an unique advantage over several other lithium companies in the area sharing salars with others. Initial sampling and hydrogeology studies have been completed and exploration drilling will be underway in 2010 to work towards a resource estimate.
El Salto and El Tapau are strategically situated 50km apart and both have year-round access. El Salto is a Copper-Gold-Molybdenum system that appears to be part of a series of porphyry systems known as the “Yellow Belt” district of San Juan. TNR’s 10,500m drilling program is currently under way at El Salto. El Tapau is a Copper Gold target. Systematic rock chip samples over an area 600 metres by 400 metres uncovered gold values as high as 19 g/t, with an average value of 2.2 g/t. The 2008 Program for El Tapau includes detailed geological mapping, systematic rock sampling, geophysical IP Survey, trenching, and the Phase One 3,000m Drill Program.
In Argentina, TNR Gold Corp’s holdings are held under the wholly-owned subsidiary Solitario Argentina S. A. (“Solitario”).
TNR also has two large projects in Alaska – Shotgun and Iliamna. Shotgun hosts a million ounces of historic gold deposit, while Iliamna is an early-stage exploration project divesdted from BHP Billiton showing geological similarities to the nearby Pebble Deposit, approximately 50km away.”

“Big IF” was in 2003 when James Dines pronounced bull market in Uranium and we made an easy killing on basket of Uranium Junior miners, some of them going from low 0.2 to over 1.0 AUD on Chinese money coming into the sector in less then a year. James Dines is in the picture again and this May he moved the REE market with value doubled and tripled with his announcement of the first Major Bull market after 2003 Uranium call in Rare Earth Elements. It will be our first take out from San Francisco Hard Assets conference last week – meeting hall was full of crowd and Master energised by attention proclaimed:

In 70s he told to his followers Buy Gold and he was a Gold Bug. He was stared down but refused to retreat. (This phrase followed every of his bullish calls.)

In 80s he told to Buy China and he was China Bug. He was…you know what happen next.

In 1997 he told to Buy Internet and he was an Internet Bug.

In 1999 he told to sell Internet stocks.

He told that it will be era of raw materials in 2000.

2002 he announced Uranium Super Bull.

2005 he told Sell Real Estate.

In November 2008 he told that it is Not the End of the world and mining stocks will double again.

In May 2009 he told about coming Buying Panic in Rare Earth Elements, announced Super Major Bull market in REE and became a Rare Earth Bug. They (REE) will be on front pages and Goldman Sachs owns Molycorp – private company which owns last past producing mine in USA. (We did not verify this information.)

– James Dines, John Kaiser and Jack Lifton are all extremely bullish on Rare Earth Elements and Jay Taylor has picked up recently TNR Gold / International Lithium for his Watch List. James Dines called it “The One Best Area to Buy Now”, John Kaiser worried about “Security of Supply in a Changing World” and Jack Lifton reported on “In 2010 What will be the Best Plays in Rare Earths for Small Investors As Well As Large”. Reasons sighted are the same as we have discussed before here:

China controls more then 97% of the market now.

By 2014 China will consume everything that will be produced in REE space.

All other REE metrics like 36 kg of REE in every Prius and 300kg of Rare Earth magnets per 1 mW of Wind Tubines.”

Secondary market for Lithium batteries with grid storage applications will be a very important catalyst for mass adoption of electric cars. It will allow to drive the cost of the lithium batteries down faster. In this article we have another angle: utilities could actually to pay you to plug into the grid – they will use distributed storage system based on a number of Electric Cars plugged in as a grid stabiliser in this scenario.

Someday, someone will pay you to hook your car into the electrical grid. It’s one of those almost-a-sure-thing business opportunities enabled by the expected rise of plug-in vehicles. But will the payoff be worth the cost? That’s where the calculations get a little complicated.

Experts on the future of the electrical grid and plug-in electric cars came together this week in San Diego at the annual meeting of the American Association for the Advancement of Science to discuss their common interests.

It’s a concept that utilities are willing to shell out money to support, said Ken Huber, senior technology and education principal at Pennsylvania-based PJM Interconnection.

PJM coordinates power transmission for a region that takes in all or part of 13 states and the District of Columbia. One of the big challenges for companies like PJM is to keep the load on the regional grids as stable as possible. Too much of a load is bad, potentially leading to brownouts. Too little of a load can also be bad, especially as electric utilities move toward renewable sources such as wind and solar energy.

To keep its regional grid stable, PJM needs to have battery storage capability equal to 1 percent of its peak load. Since PJM’s peak is around 100,000 megawatts, “we have 1,000 megawatts moving up and down,” Huber explained.

So here’s where your future electric car enters the picture: PJM is currently paying battery providers somewhere around $25 to $35 per megawatt-hour to have that electrical storage available. If you have a plugged-in car just sitting idle, PJM would love to have a system that could take a little bit of the power out of your car battery during peak times, and send it back out to your battery during off-peak hours.

“It has a very, very high value to the grid,” Huber said.

The conversion also required the addition of a power control box that could transmit and receive data about the battery’s state as well as the electric company’s power requirements over a secure Internet connection. After all, the last thing you want is to have somebody hack into your car.

Three or four cars are hardly worth developing a system for, but for the University of Delaware test, the AES power company served as an aggregator for battery capacity. The payment to the customer – in this case, the University of Delaware – was based on how much capacity the cars’ batteries held (19 kilowatt-hours), and how long the car was plugged in (on average, 21.5 hours a day).

The payments typically amounted to $300 per month per car, said Willett Kempton, senior policy scientist at the University of Delaware’s Center for Energy and Environmental Policy.

“Right now, because batteries are expensive, the value is less than the cost,” Kempton acknowledged.

You’d have to consider other benefits – for example, the fact that you could charge up your eBox for a 150-mile trip for just a couple of dollars, which is less than the price for a gallon of gasoline.

Although converted plug-ins such as AC Propulsion’s eBox are available now, most people will probably wait to make their plug-in purchase until they get a look at mass-market vehicles such as the Chevy Volt (a gas-electric hybrid) and the Nissan Leaf (which is all-electric). Both those models should be available starting late this year.

It’s too early to judge just how much impact plug-in cars will have, particularly when it comes to vehicle-to-grid technology. But if a million electric vehicles hit the streets in the next five years, as President Barack Obama has suggested, something will have to be done to accommodate that extra load on the grid, Huber said. That could take the form of demand-sensitive pricing for electricity – which would make V2G more attractive.

“I don’t believe we’re going to be in the situation we’re in today for very much longer,” Huber said.

“We call the battery the ‘fifth passenger’ sometimes, because we take such good care of it,” Posawatz told me.

As more plug-ins are sold, more and more batteries will be available to store and eventually use the energy that’s generated by solar and wind. “We’re going to make this asset available to plug in all the time to collect the energy created by this green technology,” Posawatz said.

GM is working on a number of initiatives for smart charging and automatic software upgrades, including technologies that take advantage of the automaker’s OnStar service. But it will be a while before vehicle-to-grid technology is built into the Volt, Posawatz said. “Two-way energy transfer is several years out,” he told me.

It’s more likely that car owners will use their own “smarts,” once cars like the Volt have been around for a while. Some might sign up for a V2G upgrade from the utility, like the system pioneered by the MAGIC Consortium. Others might install solar panels at home and use their plugged-in car as a storage device for home-brewed electricity.

In the long run, car owners might even save their old plug-in batteries to store more power at home. “We believe the battery will have a life outside the car,” Posawatz said.

But pretty much everyone agrees that the most important milestone on the road to plug-in paradise will be cheaper batteries. Right now, the batteries for plug-in cars cost $1,000 or more per kilowatt-hour – which makes the plug-ins much more expensive than their petroleum-fueled counterparts. The battery cost is so significant that the National Research Council concluded it would take decades for the benefits of plug-ins to outweigh the costs.

“That’s the biggest challenge,” Posawatz acknowledged. “How can we quickly move down the cost curve and get the technological advances going? Certainly the automotive industry does not move as quickly as the telecommunications industry. … Can we make that kind of progress on a shorter time scale?”

What do you think? Is there a plug-in payoff in your future, or are biofuels the way to go? Feel free to weigh in with your comments below.

“We will post a few videos to address a general need for market education on Electric Cars 101: technology, lithium batteries, their safety, reliability and experience of electric drive. The main message is that you do not have to compromise on comfort and safety in order to be green, if your car is produced like GM Volt on the following Videos. There are models of Electric Cars from different automakers with different level of comfort and price to be paid for it.“

by Sebastian Blanco (RSS feed) on Feb 17th 2010 at 8:02AM

Hyundai unveiled the 2011 Sonata at the Los Angeles Auto Show late last year and announced at the time that the U.S. would get a hybrid version – with the first production automotive application of a lithium polymer battery – in late 2010. Green Car Reports says that we’ll get our first look at this model (which, OK, will look pretty much exactly like the non-hybrid version) at the New York Auto Show in late March. The powertrain is a hybrid version of the Theta II that Hyundai is calling Blue Drive. Currently, the only option you can get under the Sonata’s hood is the new 198 hp direct injected 2.4-liter four cylinder, with a turbocharged version coming later. The standard version starts at $19,915, and if Hyundai’s commercial for the 2011 Sonata is any indication, then maybe we’re in for some advertising treats when the hybrid version goes on sale.

We will praise all pioneers in Electric space, it takes courage and a lot of devotion to make Next Big Thing happen, Elon Musk was one of the few who made Green Mobility Revolution a reality on our drive.

“Electric Cars are here, they will be on our roads soon. They will be powered by Lithium and automakers are unveiling model after model of EVs in recent months. Investment decisions in Electric Cars Value Chain will be driven by politics and Supply and Demand in a tightly controlled Lithium market space.”

Elon Musk, the guy leading the company that proved electric cars could be cool as hell, just won the 2010 Automotive Executive of the Year Innovator Award. He snagged the award for what the judges called “his enlightened vision for the automotive industry’s future.”
It seems fitting given that Tesla Motors, under Musk’s leadership, has been credited with pushing the entire automotive industry toward EVs. Even Bob Lutz, the chief rabble-rouser at General Motors, has hailed the company for giving the industry a swift kick in the ass and proving lithium ion battery technology could work in cars.
“Tesla gave us a major impetus,” Lutz said a few months back during the Los Angeles Auto Show. “I’m thankful to Tesla for giving those of us who championed the Chevrolet Volt proof that lithium-ion batteries would work.”
Musk joins Lutz and other noteworthy industry execs including former Chrysler honcho Lee Iacocca, Renault CEO Carlos Ghosn and Daimler boss Dieter Zetsche in winning the award, which has been presented annually since 1964.
“Elon Musk is a man who came from humble beginnings to accomplish the extraordinary,” said Robert Djurovic, executive director of the Automotive Executive of the Year Award program, which is sponsored by DNV Certification. “We are thrilled to present him with our Innovator Award, and see him as someone who has not only already accomplished so much in his young life but also as one to watch for future technology breakthroughs.”
The award was announced Wednesday shortly before a plane crash killed three Tesla employees. Musk, in a statement issued before the crash, thanked his peers in the auto biz for honoring him.
“This award is a tremendous honor, in particular because the nomination comes from my respected peers and colleagues,” Musk said. “It demonstrates not only the influence that a relatively small startup can have on the global auto industry, but also the speed with which other car companies and suppliers are joining Tesla in the electric vehicle revolution.”
Photo: Jim Merithew / Wired.comRead More http://www.wired.com/autopia/2010/02/elon-musk-executive-of-the-year-innovator-award/#ixzz0fzV0zpki“

This Electric Car with EC generator as a range extender is based on the same technology as Ampera and GM Volt:

“The first battle for market place is open: GM is positioning its Volt as “a better Electric Car” – we guess better than Nissan Leaf – pure EV, because GM Volt has a range extender (CE powered generator) to address “Range Anxiety”. It will be interesting to see Nissan Leaf reply in its AD campaign. We think that both concepts will have its space in the market place, at first GM Volt will be more appealing in US and Canada with its vast distances vs Nissan Leaf adoption in more compact urban space of Europe, later with further development of the lithium batteries pure EVs like Nissan Leaf will start to take over, due to cheaper (when powerful lithium battery will cost less that EC generator pack) and more reliable composition. Our investment thesis Electric Cars Value Chain will benefit with all these concepts on the roads.”

Vauxhall Flextreme GT/E
Stunning Grand Tourer-style electric concept car boasts high performance battery and active aerodynamics

By Sam Hardy
18th February 2010

MEET the latest incarnation of Vauxhall’s electric dream! This is the Flextreme GT/E, a striking five-door luxury coupe concept that will be the star of the firm’s stand at the Geneva Motor Show. Previewing a future Vauxhall design direction with a lightweight body made of aluminium and composite materials, it gets a more powerful version of the Ampera’s plug-in hybrid range extender that allows a top speed of 125mph and 0-60mph in nine seconds. Produced over the last twelve months by design director Mark Adams and his team in Russelsheim, Germany, it points the way forward to a future large flagship for the range, as well as showing how the firm’s electric powertrains are developing. As you can see, it’s a remarkable looking car with a low roofline – some 19cm lower than the Insignia’s – complete with bold recessed headlights, a wide grille and a dramatic waistline that kicks up over the rear wheels. This detail hides movable aerodynamic ‘blades’, which automatically deploy to keep the airflow attached at the rear, drastically reducing drag. Overall, the Flextreme GT/E has a drag factor of just 0.22 – a figure Adams believes could go even lower. Similar in size to an Insignia, the concept uses aluminium and carbon composite materials to reduce weight to a similar level to the Ampera. Speaking to Auto Express, Mark Adams said: “Whether these details will make it onto a production car is down to cost. But I could certainly invisage active aero aids and exotic materials on a more expensive top end car.”Power comes from an uprated version of the Ampera’s E-REV pack, with a 161bhp electric motor hooked up to a range-extending 70bhp 1.4-litre petrol engine, which kicks in when charging is required. Some 370Nm of torque is sent to 21-inch front wheels which feature narrow 195/45 tyres. Vauxhall engineers estimate a battery-only range of 40 miles, a total range of around 300 miles and an average CO2 output of just 40g/km. Top speed is 125mph while 0-60mph takes around nine seconds. There’s every chance the Flextreme GT/E will make it into production sitting above the Ampera in Vauxhall’s range. Expect its design details to feature on upcoming models too. “This is not a flight of fancy. This is to electric cars what the Insignia was to our prodcution car portfolio. A flagship,” Adams told Auto Express. Expect to see more concept cars based around the architecture too. Adams reckon they’ll be great to look at as well. “Flextreme GT/E is just one expression of our intent. The design of the E-REV pack allows much more design freedom. Packages could become smaller, with reduced bulk around the nose, allowing us to improve design and meet tough pedestrian protection laws.”We’ll learn more about the Flextreme GT/E at Geneva on March 2nd.

We will post a few videos to address a general need for market education on Electric Cars 101: technology, lithium batteries, their safety, reliability and experience of electric drive. The main message is that you do not have to compromise on comfort and safety in order to be green, if your car is produced like GM Volt on the following Videos. There are models of Electric Cars from different automakers with different level of comfort and price to be paid for it.

The first battle for market place is open: GM is positioning its Volt as “a better Electric Car” – we guess better than Nissan Leaf – pure EV, because GM Volt has a range extender (CE powered generator) to address “Range Anxiety”. It will be interesting to see Nissan Leaf reply in its AD campaign. We think that both concepts will have its space in the market place, at first GM Volt will be more appealing in US and Canada with its vast distances vs Nissan Leaf adoption in more compact urban space of Europe, later with further development of the lithium batteries pure EVs like Nissan Leaf will start to take over, due to cheaper (when powerful lithium battery will cost less that EC generator pack) and more reliable composition. Our investment thesis Electric Cars Value Chain will benefit with all these concepts on the roads.

Get connected to the Electrification in action Videos on all aspects of GM Volt Technology and Lithium battery:

M&A in Lithium space continues with very aggressive pace: today we have two deals announced. First one is in Argentina and another one is in Nevada. JOGMEC is very active now in Lithium space along with other Japanese companies. It has participated in deal with Orocobre in Argentina and now moves in the J/V with this small Junior. Our thesis that there is place for another lithium producers could be considered to be proven now. Other Juniors involved in Lithium exploration and development could expect increased valuation and interest from end users as well.

Among them, International Lithium Corp. has delivered a presentation in Las Vegas focused on exploration in Nevada and Argentina. This company will benefit along with Rodinia Minerals from more attention to Nevada Lithium Brine properties.

“Main message from the conference:

Japan Oil, Gas and Metals National Corporation (JOGMEC) Signs $2.5 Million USD MoA to Earn 51% of Lomiko’s Alkali Lake Lithium Brine Property

Press Release Source: Lomiko Metals Inc. On Tuesday February 16, 2010, 8:00 am EST
VANCOUVER, BRITISH COLUMBIA–(Marketwire – 02/16/10) – LOMIKO METALS INC. (TSX-V:LMR – News)(PINK SHEETS:LMRMF – News)(Europe: ISIN: CA54163Q1028, WKN: A0Q9W7) (“Lomiko” or “the Company”) is pleased to announce that Japan Oil, Gas and Metals National Corporation (“JOGMEC”) has entered into a Memorandum of Agreement (“MoA”) with Lomiko Metals Inc. and its wholly-owned subsidiary Lomiko Metals USA LLC (“Lomiko USA”) to acquire 51% of Lomiko’s Alkali Lake Project (“the Property”) in Esmeralda after completing $2.5 million USD in work no later than March 31, 2013.
Japan Oil, Gas and Metals National Corporation (JOGMEC) was established on February 29, 2004. JOGMEC integrates the functions of the former Japan National Oil Corporation, which was in charge of securing a stable supply of oil and natural gas, and the former Metal Mining Agency of Japan, which was in charge of ensuring a stable supply of nonferrous metal and mineral resources and implementing mine pollution control measures. Further details are available at: http://us.lrd.yahoo.com/_ylt=Ao_sFbvEolL8YCzuvr6ZeWStcq9_;_ylu=X3oDMTE2cGZuYmkyBHBvcwMxBHNlYwNuZXdzYXJ0Ym9keQRzbGsDaHR0cHd3d2pvZ21l/SIG=114eqevh0/**http%3A//www.jogmec.go.jp/english.
Both parties must contribute based on a 51/49 ratio to retain their interest after the Earn-in-Date. JOGMEC has the Right of First Refusal to acquire the remaining interest in the property after the Earn-in-Date and may accelerate the Earn-in-Date by completing required expenditures early. JOGMEC also has the right to transfer its interests in the Alkali Lake Property, in whole or in part, to one or more Japanese companies or a consortium of Japanese companies. JOGMEC shall have exclusive right to direct the marketing of minerals or mineral materials removed from the Property on behalf of the Joint Venture for a 10 year period from the date of first commercial production.
The above agreement is subject to a 30 day due diligence period that may be extended to not more than 90 days. Once above due diligence is satisfied by JOGMEC, Lomiko and JOGMEC will form a Joint Venture Management Committee to direct exploration and Lomiko will act as Operator. JOGMEC shall prepare an initial draft of the definitive agreement between the parties to the MoA. Any Exploration expenditures by Lomiko from January 17, 2010 to present will be credited to the Joint Venture and compensated accordingly.
The Company’s subsidiary Lomiko Metals USA LLC, located 552 lode claims comprising 4,615.4 Ha or 11,404.9 acres in Esmeralda County, Nevada. The staking covers a large portion of Alkali Flat Salt Lake in Montezuma Valley which is prospective for economic grades of lithium and other materials. America’s only lithium production facility owned by Chemetall Foote, a subsidiary of Rockwood Holdings (NYSE:ROC – News) is located 15 km away by road in the Clayton Valley, immediately to the west. In addition to lithium carbonate, Silver Peak is one of the world’s leading producers of lithium hydroxide. The U.S. government recently awarded Chemetall US $ 28.4 million USD to upgrade and expand the Silver Peak lithium brine mine as part of a program to supply sufficient lithium for the next generation of electric vehicle batteries (Resource World, Vol. 8, Issue 1). Details on Chemetall Foote’s Silver Peak Property are available at: http://us.lrd.yahoo.com/_ylt=Am63yRIxavzOUUdK641Zhl6tcq9_;_ylu=X3oDMTE2NWNtdjhsBHBvcwM0BHNlYwNuZXdzYXJ0Ym9keQRzbGsDaHR0cHd3d2NoZW1l/SIG=1157d8ic4/**http%3A//www.chemetalllithium.com/.
Montezuma Valley (also known as Alkali Flat) formed in a structural basin, a down-faulted and rotated crustal block caused by tensional spreading forces common to the Basin and Range province of Nevada and nearby states. The faulted blocks, which often result in the creation of closed basins, are composed of a variety of Precambrian and Paleozoic rocks overlain by younger volcanic rocks ejected from a nearby eruption during the Tertiary. It is these volcanic rocks, some containing high lithium values, that are considered to be the source of lithium found in subsurface brines in Clayton Valley. Lithium, along with numerous other elements, was liberated from the rocks through mechanical and chemical weathering processes and transported into the basins. Subsequent climatic changes in the Quaternary resulted in the enrichment of lithium solutions by evaporation. Montezuma Valley and the Kar claims are located immediately east of Clayton Valley. The two valleys are separated by the Paymaster fault and share the exposed Precambrian and Paleozoic basement rocks covered by tertiary volcanic rocks of Paymaster Ridge.
Mr. Garth Kirkham, P.Geo, is the Qualified Person responsible for the technical content of this news release.
To view accompanying map, please click on the following link: http://us.lrd.yahoo.com/_ylt=AgLCyohBcSILn.hALH8ZIlOtcq9_;_ylu=X3oDMTE2bW0wMWRyBHBvcwM1BHNlYwNuZXdzYXJ0Ym9keQRzbGsDaHR0cHd3d21hcmtl/SIG=11rtsicb8/**http%3A//www.marketwire.com/library/20100215-lmr2168.jpg
On behalf of Lomiko Metals Inc.
Paul Gill, President & CEO”

“Mariana Project — Argentina: ILC’s focus lies in the 120 square kilometre 100% held Mariana lithium brine project. Within proximity to major producers of lithium carbonate (FMC and SQM), Mariana has all the key characteristics of a potential producer. ILC has completed initial sampling and hydrogeology, is producing a NI43-101 technical report and is in preparation for the initial exploratory drill phase. Should all the factors prove to be favourable and the project advances accordingly a mineral resource can be estimated and a feasibility study completed in approximately 2 years.“

Canada Zinc Metals CZX.v will be our candidate for this trend. Company stock builds a Double Bottom Reversal at this moment after recent slide down with the soft general market, news from China about solid economic growth should ignite excitement again. Any corporate action will be the catalyst for this stock to regain its upside momentum.

Victor Goncalves

Equities & Economics Report

Canada Zinc Metals

Recent Price: 52 cents
Shares outstanding: 91,991,414
Working Capital: 4.5 million dollars

With Oil price moving above 100 USD/barrel again question about Electric Cars and their adoption rate will move from: “Do we like it?” and into “Where can we get it?” very fast.

Peak oil theory could become a stark reality

The ‘peak oil’ theory, coined in the 1950s, may soon be upon us, analysts increasingly believe
Tim Sharp

Published on 11 Feb 2010
“Within five years we think peak oil is going to affect every aspect of our daily lives,” warned Philip Dilley, chairman of engineer Arup, yesterday.
We are set for shortages and rising prices. And just to cheer you up, gas is probably going the same way too.
It all sounds familiar. The concept of “peak oil”, the stresses caused when oil production stops increasing, has been kicking around since the 1950s.
It hasn’t happened yet and, to many, the theory is becoming a little tiresome.
But the membership of the UK Industry Taskforce on Peak Oil and Energy Security, whose report Dilley was introducing, suggests these concerns are reaching the mainstream and business is getting anxious.
As a man known more for his fondness for pursuing commercial space flights and his airline brand than his love of the environment, Virgin Group founder Sir Richard Branson makes an unlikely green advocate.
As do others, including Ian Marchant, chief executive of Scottish Hydro Electric owner Scottish & Southern Energy and Brain Souter, founder and boss of transport firm Stagecoach.
Published yesterday, the taskforce’s second report (their first in autumn 2008 sank without trace because we were too busy worrying about our banks going bust) was notable for the starkness of some of its conclusions.
As the global economy expands, oil demand could rise from 80 million barrels a day to 120 million barrels a day by 2030. It could hit 180Mb/d by 2050.
Yet the scope for production increases is limited.
Arup director John Motes said: “There may be a huge amount of oil in the ground, we are not saying there isn’t. But there is a limit to the rate at which we can extract it.”
This is because much of the stuff is in the form of tar sands or inaccessible locations such as Antarctica where it is time consuming and expensive to get the stuff out of the ground.
Currently around 80Mb/d comes out of the ground, the report found.
But the taskforce is sceptical that this can get much above 92Mb/d.
Motes said we face the prospect of prices staying “structurally high” at levels well above today’s $71 a barrel level.
He added: “Maybe $150 (a barrel), maybe more. That is a pretty unpleasant thought.”
The UK faces a particularly bleak prognosis. After 30 years of self-sufficiency we face increasing reliance on imports, according to the report’s backers.
Branson said: “The onset of peak oil and therefore the end of the era of cheap oil will have a very, very wide impact.”
The report points to higher costs for consumers in transport costs, and energy bills and the costs of many everyday items. But it could also mean shortages and less predictable supplies as producer countries hoard black gold for their own use.
Those who are going to be hit worst are the poor, the report authors warned, particularly in rural areas where 1.5m people still rely on oil for heating.
This view is becoming increasingly accepted. A six-year oil price rally ending in 2008 supports the theory that world oil supply may be nearing its peak.
BP chief executive Tony Hayward recently predicted a demand peak of between 95 and 110Mb/d.
Christophe de Margerie, chief executive of Total, warned a couple of years ago it would be difficult to get 100m barrels a day out of the ground.
Marchant of SSE said yesterday gas could go the same way. This matters to him because SSE accounts for 15% of the UK’s gas demand.
“We think the demand for coal will go down as we move into a decarbonised economy and that will mean more demand for gas. We see peak oil being followed a few years later by gas being at a distressed price as well.”
Marchant believes that in the UK we are already 18 months behind schedule in dealing with the potential problem, although the drop in oil demand during the recession has bought us a couple of extra years.
He said: “My sense is that peak oil is a clear risk. If you do not think about that risk it will become a real problem.”
The report conveyed a sense of urgency, equating the “oil crunch” with the credit crunch.
“This time we do have the chance to prepare,” it said. But what should be done about it?
Funnily enough, government investment in power distribution and public transport featured highly.
The taskforce members had their personal ideas, too.
Stagecoach chief executive Brian Souter highlighted his own company’s trials of bio-fuel made from recycled chip fat. Widespread use of this would be economical once oil hits $70 a barrel, he told The Herald.
Souter also called for an overhaul of taxation.
He said: “I think we can do with a more radical approach to this by more of the political parties. We have a big fiscal problem facing us.
“I think the thing to do here is to take the poor out of tax and abolish the lower rates of tax and move to a carbon tax so users are actually paying.”
Marchant is adamant that “houses will have to be different” to be more fuel efficient.
He also called for changes to North Sea fiscal regime: “The tax regime for the North Sea does need a fundamental overhaul. It was designed in the ‘70s for an increasing production environment.”
He added: “Now is the time to have a proper look at what we want out of fiscal regime in the North Sea to get the incentives right.
“It can still be producing 60% of our oil by 2020 but it could be as low as 40% if we do not get the tax right.”
All of these are interesting ideas and act as a challenge to other business leaders to start thinking about the issues themselves.
But it still remains unclear quite how corporate Britain sees its role in protecting itself and the country as a whole from the looming oil shock.
Throughout all their presentations yesterday, nobody suggested investors in energy hungry firms have to accept lower returns.”

Nissan Leaf Winter Olympics commercial

Nissan just posted a press release with lots of new information about the Nissan Leaf EV that includes the purchase process and we have a commercial that Nissan is going to air during the Winter Olympic games. Check out the commercial and then read the press release below.

NISSAN ANNOUNCES NISSAN LEAF PURCHASE PROCESS; GIVES FIRST GLIMPSE AT MARKETING CAMPAIGN
Nissan LEAF Zero-Emission Tour Culminates in New York

The Nissan LEAF Zero-Emission Tour culminated today with an appearance in New York City.

The three-month tour, which made 63 stops in 24 cities, offered the opportunity for interested drivers, media, civic partners, businesses and university students to learn more about the Nissan LEAF and the benefits of zero-emission driving. The tour helped pave the way for the 2010 introduction of Nissan LEAF, the world’s first all-electric, zero-emission car designed for the mass market, and leads up to the start of the vehicle-purchase process. The Nissan LEAF will be available to consumers via lease or sale, in a single transaction that includes the battery. Steps to acquiring a Nissan LEAF are:
REGISTER: Interested people can register for more information about the Nissan LEAF onwww.NissanUSA.com. To date, close to 50,000 people have registered on the website. Registrants will be given first priority to reserve a Nissan LEAF.
RESERVE: The reservation process will begin in April, shortly after the announcement of the price of the Nissan LEAF. Upon paying a fully refundable $100 reservation fee, registrants will be among the first in line able to order a Nissan LEAF.
ORDER: Nissan will begin taking firm orders in August, for deliveries when sales begin in the driver’s particular market.
EARLY DELIVERIES: Rollout begins in select markets in December 2010, with vehicles available in all major launch markets quickly thereafter. “The Nissan LEAF purchase process is effortless, transparent and accessible, offering value with a one-stop-shop approach for everything related to the car, including the assessment, permitting and installation of in-home battery charging units,” said Carlos Tavares, Chairman, Nissan Americas. “We want everyone to feel good about having a car that is affordable, fun to drive and good for the environment.” Coinciding with this next phase of the Nissan LEAF launch is the debut of Nissan’s initial global marketing campaign, which is called “The New Car.” A first look at the campaign — which illustrates Nissan’s passion about the potential for zero-emission mobility and a better, cleaner world — was shown in New York as part of the culmination of the Nissan LEAF Zero-Emission Tour. The Nissan LEAF Zero-Emission Tour covered 10,000 miles in the United States and Canada, providing the first opportunity for more than 100,000 people to see and learn about the Nissan LEAF first hand. “There was a groundswell of grassroots support from coast to coast,” said Tavares. “Everywhere we went, people recognized a new form of mobility — a turning point — and they wanted to be a part of it. The response was spontaneous and diverse. We were joined by mayors and government officials, CEOs, utility partners, car enthusiasts, students, dealers, media, environmentalists, Twitter users and lots of families.”Tour Highlights:
Diverse tour stops, stretching from Stanford University to the Kennedy Space Center. Other stops included: Phoenix on New Year’s Eve, in conjunction with the Fiesta Bowl; Qwest Field in Seattle; the Oregon Museum of Science and Industry in Portland; and a charging-station-equipped McDonald’s in Cary, N.C. The tour also stopped at Nissan Americas in Franklin, Tenn; the Smyrna, Tenn., manufacturing facility where the Nissan LEAF will be built starting in 2012; and Nissan Design Americas in San Diego. New York area stops include Madison Square Garden (Feb. 10), and upcoming public displays at the Time Warner Center (Feb. 12) and the Liberty Science Center (Feb. 13).
Due to the high level of interest, Atlanta and Boston were added to the original tour schedule, bringing total cities to 24.
Nearly 50,000 people have registered to receive information and learn more about the Nissan LEAF onwww.NissanUSA.com as a result of the tour. Signing up online is the first step in the reservation and purchase process.
Already, the Nissan LEAF has received more than 10 media and environmental awards, including the Green Car Vision Award, presented at the Washington Auto Show by Green Car Journal.
The announcement of the closing of Nissan’s loan with the U.S. Department of Energy. The $1.4 billion loan will fund the modification of Nissan’s Smyrna, Tenn., manufacturing plant to produce the Nissan LEAF and batteries to power it. Groundbreaking for the new battery plant will take place in May.
The announcement of a joint commitment with Hertz, the world’s largest general market rental brand, to bring zero-emission mobility car rental to the United States and Europe in 2011. Hertz is developing a rollout of the Nissan LEAF at select rental sites in both major markets.
Nissan announced that AeroVironment will supply and install home charging stations for the Nissan LEAF, creating a one-stop shop for the Nissan LEAF and its charging equipment.
The tour reached all markets that are part of The EV Project, the world’s largest EV infrastructure deployment ever undertaken. The EV Project, funded by a $98 million grant from the Department of Energy and led by EV infrastructure provider eTec, a division of Ecotality, will provide an unprecedented number (6,510) of public charging stations across the 5 participating markets and will provide home charging stations for up to 4700 Nissan Leafs sold in those markets. The public stations will include both Level 2 (240V) and Level 3 DC fast chargers. The EV Project markets are Seattle, Oregon, Tennessee (Knoxville, Nashville and Chattanooga), Phoenix/Tucson, Ariz., and San Diego.
The tour also served as the backdrop to announce newly established partnerships with Reliant Energy of Houston; the City of Orlando and the Orlando Utilities Commission; the City of Houston; and the State of Massachusetts. These agreements, like three dozen others globally, are designed to promote the development of an electric-vehicle charging network and policies to support the widespread adoption of electric cars.
Existing partnerships furthered progress, taking steps like securing letters of intent for vehicle fleet purchases and the formation of working groups and task forces to foster the development of the electric-vehicle infrastructure, such as Oregon’s Governor’s Alternative Fuel Vehicle Infrastructure Working Group. In North America, Nissan has spearheaded a holistic approach to zero-emission mobility by working with states, municipalities, utility companies and other partners, to prepare markets and infrastructure. Nissan has formed 18 partnerships in the United States, in areas including State of Tennessee, the State of Oregon, Sonoma County, San Diego and San Francisco in California, Phoenix and Tucson, Ariz., Washington D.C., Seattle, with the City of Orlando and Orlando Utilities Commission, with Progress Energy in Raleigh, N.C., with the City of Houston and Houston-based Reliant Energy, with the State of Massachusetts. Nissan also has formed partnerships with Mexico City and Vancouver, Canada. Nissan, along with alliance partner Renault, is the only automaker committed to making all-electric vehicles available to the mass market on a global scale. In North America, Nissan’s operations include automotive design, engineering, consumer and corporate financing, sales and marketing, distribution and manufacturing. Nissan is dedicated to improving the environment under the Nissan Green Program 2010, whose key priorities are reducing CO2 emissions, cutting other emissions and increasing recycling. More information on the Nissan LEAF and zero emissions can be found at www.nissanusa.com/leaf-electric-car.”

It is a very important development in the lithium market – it is an off take agreement with a hard rock lithium miner in Australia. Japanese are coming on the Chinese turf. Oligopoly of Brine lithium producers SQM, FMC and Chemetall could now rest assured: they have failed in promoting idea about “There is no place for anybody else in this business”. Now we have few deals in place showing that automakers will go to secure their own supply chain of strategic commodities: Lithium and REE.

Canada Lithium – off take option with Mitsui.

Lithium Americas – investment from Magna.

Orocobre – J/V deal with Toyota Tsusho.

Galaxy – off take deal with Mitsubishi.

From the investment point of view, ability to pinpoint new Junior candidate for strategic J/V with one the End Users will be a game changer for Lithium portfolio performance.

“Investment decisions in Electric Cars Value Chain will be driven by politics and Supply and Demand in a tightly controlled Lithium market space. Will Lithium market be under control of our “friends” from Bolivia, like oil is now under control of OPEC? Will it be controlled by 3-5 companies with lithium revenue as low as 8%? Or will automakers integrate it into their Supply chain, when diversity of resource base will the dominant drive?”

US Dollar is still on Sell signal daily. It is the key to Gold market and to Juniors performance.

Gold is at short term Buy signal and is building the base for reversal with a Double Bottom.

“Toronto auto show focused on all things green

Andy Johnson, CTV.ca News Staff
Date: Sunday Feb. 14, 2010 7:23 AM ET
If the Canadian International Auto Show had to be summed up in a colour, it would undoubtedly be the colour green.
Almost every display from almost every manufacturer at the massive, sprawling show that has taken over the Metro Toronto Convention Centre has an environmentally-friendly component — from cutting edge electric cars to sleek hybrids and high-efficiency engines.
But it’s largely for show, according to one analyst. While automakers have no choice but to play up the green aspect of their R and D, it’s still only a tiny fraction of most carmakers’ business.
“Right now green is still a bit of a novelty,” Mark Richardson, editor of Wheels magazine, tells CTV.ca.
“It’s a niche in every manufacturer’s product line but probably in 10 years time green will be normal and we’ll just expect to see this stuff.”
Companies must demonstrate they have an eye on the future and that their ‘eco-conscience’ is driving the direction their product lines are going — even though green cars are not all that profitable yet, Richardson says.
Quite simply, car makers that want to stay relevant have to be green — or at least appear as if they are, Richardson says.
As a result the Toronto show and the Detroit auto show — the premiere event in North America — have steadily become more and more green-focused over the last few years.
“You watch all the different manufacturers this year — they all have electric cars, hybrid cars. There’s no point in coming out with a regular car as any kind of halo vehicle anymore,” he says.
Even the federal government is getting in on the action. Peter Kent, minister of state of foreign affairs, was at the Toronto show on Thursday to hand out ecoENEGRY Vehicle Awards for the most fuel efficient new cars and light trucks.
“Car and truck emissions account for 12 per cent of the greenhouse gas emissions in Canada every year and the government is committed and continues to be committed to bringing those numbers down,” Kent tells CTV.ca.
Officials from Transport Canada were there too, to announce a new partnership with Mitsubishi to test its new electric car for road-worthiness.
The greening of Canada’s cars seems to be a priority for nearly everyone involved. But there’s still a price tag attached to that goal — for the government, consumers and automakers, Richardson says.
Hybrids still cost thousands more than traditional gas-only vehicles, while electric cars are expected to cost tens of thousands more. Even efficient diesels like the Car of the Year Volkswagen Golf GTI is approaching $10,000 more than its City Golf gas-powered cousin.
Until those prices come down, their sales numbers are likely to compare to the less expensive, more traditionally-powered counterparts.
“There’s a price for being green and people can’t always afford it, but green demonstrates your company is looking into the future and if you’re not green right now you’re not going to be anywhere in 10 years,” Richardson says.
For the foreseeable future, he says, the prevailing colour at auto shows is likely to remain green.”

Electric Cars are here, they will be on our roads soon. They will be powered by Lithium and automakers are unveiling model after model of EVs in recent months. Investment decisions in Electric Cars Value Chain will be driven by politics and Supply and Demand in a tightly controlled Lithium market space. Will Lithium market be under control of our “friends” from Bolivia, like oil is now under control of OPEC? Will it be controlled by 3-5 companies with lithium revenue as low as 8%? Or will automakers integrate it into their Supply chain, when diversity of resource base will the dominant drive?

If somebody would like to place future of Electric Cars into the hands of Bolivia and its leaders, they are welcome to try their luck – Japanese Multinationals do not play against Casino and bet on House in Las Vegas: they would like to have secure supply of lithium and REE from diverse sources in stable political regions close to the end markets. They are ready to go the distance and strike J/V deals with Juniors involved in Exploration and Development in Lithium and REE space.

Today we have another research paper from Las Vegas Lithium Supply and Markets conference, it is a Bolivian perspective on the market. There were a lot of talks this year whether there is enough Lithium in stable political locations in order to build next industrial revolution based on lithium-ion technology and whether Bolivia could kill Lithium market when it is on line with its own production. Recent moves by Toyota and Magna confirmed our observation: security of supply and its diversity will be the most important for automakers to make their strategic move into post oil environment. There is place for new Lithium producers, but who will make it to the production stage?

Another take from Las Vegas gathering: we are entering a very important stage of Lithium and REE market, when opportunity is noticeable and existing players are viciously protecting their market.

After recent rush into the sector there are around 60 projects in development phase world wide with most junior companies behind it. Most of the companies do not even have any technical expertise on board and sourcing all work to outside specialist.

Some analysts suggest that the area is very crowded and we agree with it – it will provide opportunities in this consolidation stage for strong teams to pick up promising properties from the companies coming into the Hype stage without technical expertise and capital behind them.

We have talked to a number of participants in Las Vegas conference and have received the following information from International Lithium Corp., Western Lithium and Rodinia Minerals.

One of observations is that there were present all largest Japanese trading houses:

“Sogo shosha (総合商社 sōgō shōsha?) means general trading companies, Japan‘s unique business, that trade a wide range of products and materials. Not only simply trade products, they also have historically acted as investment banks and private equities of Japan. This phenomenon looks like a business philosophy rather than a visual model[clarification needed]
The seven largest are Mitsubishi Corporation, Mitsui & Co., ITOCHU, Sumitomo Corporation, Marubeni, Toyota Tsusho and Sojitz. They collectively maintain approximately 1,110 offices in over 200 cities around the world and employ more than 20,000 highly-trained specialists who each average more than fifteen years of trading experience.
Sogo shosha deal in general commerce. On one end, they supply large volumes of raw materials goods from large manufacturers or wholesalers to smaller distributors and to numerous small retailers. On the other end, they act as an international sales force for medium and small sized companies who do not have ability to market and maintain distribution channel overseas. They also often act as the linchpin of large consortium contracts ranging from the building of large shopping malls to railway or property projects, coordinating the activities of banks, construction and logistic companies.
What makes them unique is their size, scope, information-gathering capabilities, and functional diversity. A sogo shosha is an economic organization whose functions consist of minimizing the risks involved in transactions through its ability to distribute the risk; reducing transaction costs through its ability to take advantage of economies of scale; and making efficient use of capital. They are Japanese traders, existing at the center of Japan’s global economic efforts, and serving as intermediaries for half of their country’s exports and two-thirds of their imports.”

Other important players were presented as well: LG, Samsung, Renault, EnerDell, Ford, Posco, investment and brokerage houses from U.S., Canada, Europe and Asia.

Main message from the conference:

1. One year ago questions were – will it be Electric Car? Will it be powered by Lithium?

Now it is almost out of the question – we will drive Electric cars after CV before anything else on a mass scale, they are ready, and it is lithium to power them. Question remains – how fast will be the adoption rate? It depends on battery cost, business models of market penetration (lease of the batteries) and government subsidies (they are in place in most markets). With rising scale of production expectations are that cost per 1 kWh will drop from over 1000 USD/kWh to below 500 USD/kWh. GM has announced before that they are expecting to achieve cost below 450USD/kWh in 3-5 years. Secretary of DOE of U.S. discussed estimations that with recent technological advance prices below USD100 per kWh could be a possibility. According to FMC cost of Lithium is less then 1% of battery final cost now.

2. All Japanese companies presented corporate structures with Lithium and REE divisions formed as part of the supply chain for Japanese multinationals. They are all hunting for resources to lock them in. It looks like almost a military operation with divisions on all elements of Lithium batteries and electric powertrain for the production supply chain.

3. Main drive for them is to secure supply with focus on existing dependency on limited region, uneven distribution and demand increase.

4. Recent deals by Magna and Toyota with juniors (by the way both companies are sitting on the same Salar system) spiked a lot of interest to upcoming juniors with solid projects and teams able to advance them. Brines in Argentina and Nevada are of particular interest now.

Existing producers SQM, FMC and Chemetall (all from brines) were defending their position with “thousand of years” Lithium supply – conference was very sceptical: market is not transparent, their lithium share of revenue is very low (some 8%) and production decisions are driven by other mainstream product like potash.

Main concern is security of Supply.

Important note – nobody of major players from battery making or auto making side announced any deals with three majors at the moment. It appears that they are ready to go distance, but become a partners in developing resources necessary for long term production cycle. They are expecting juniors to operate the projects, looking for advance opportunities, but very aggressively studying the market.

5. Major players in the Industry SQM, FMC and Chemetall were addressed as Oligopoly and there is a risk of concerted play against newcomers.

6. Strategic partnership for Juniors will be crucial in order to be successful in timing to market. Demand expected to pick up significantly with Electric Cars coming into mainstream in 2014-2015.

7. Demand for lithium in its optimistic scenario depends on rate of adoption of Electric Cars. There are wide range of numbers and estimations on the market. At the conference all serious participants from Asia noted that level of understanding of development of Electric cars technology and advance in batteries was very poor by the invited “experts”. There was no presence of the most advance Lithium market players on automakers side like GM or Nissan.

8. Apart from a few professionals from Canaccord, Byron and Cormark (Canada) analysts or “investment bankers” (US) were presented with specialisation in Lithium/Biotech/Everything else. It is a very early stage in the investment cycle and even supply side of investment banking is still in its education phase.

9. Information was presented that number (basically all of them) of Chinese Lithium projects are running into a technical/chemical/extraction problems, that is why even hard rock producers from Australia still have their market and new projects are under development, new twist is when mines are in Australia and than spodumene transported to China for further production of Lithium carbonate.

10. Of notice was a presentation by Altair Nano “Aplications for advance batteries and grid storage”. There is an estimated demand for 40 000 MW of “fast”storage capacity worldwide at the moment. It is not a straight forward conversion, but with 24 kWh battery in Nissan Leaf this capacity will translate into magnitude of equivalent 1.7 million electric cars. Announcements from Panasonic, EnerDell and Mitsubishi showed that grid applications are adopting Lithium technology as well. cost will be the driving factor as well here.

11. Main message from upcoming producers was that the next decade Major Multi-National companies in Electric Space with 280 billion market and Major Companies in battery making space with 70 billion market will depend on SQM, FMC and Chemetall brine lithium production with market under 3 billion.

There is place for another players with focus on Lithium.

“While U.S. spend billions to protect oil communication lines all over the world, China is moving fast into post oil environment dramatically cutting cost of it manufacturing base. China understands that low wage cost advantage will have to give up with time – they need to keep work force happy, but transition in Energy Space will bring China Energy Security, undermine U.S. military machine focused on Oil routes ocean domination and will bring another economic advantage in the form of much lower transportation cost. Nuclear Power developments in China support our point of view. What will be the response from Obama? We all have counted on the banks Too Big to Fail – they have failed and financial system is still in rubbles, now some are counting on “they will lose more if they sell” – is it another Big If in the making? Who can be sure?“

From the report:

“The lithium endeavour in Bolivia faces at least three different kinds of challenges. First, at the political level, the government has decided to go on its own. According to the Project Director, the industrial plant will be completely owned by the state because: (1) Bolivia has the largest reserves of lithium in the world; (2) that is the only way to ensure that the benefits will be reinvested in the region and in the country; (3) Bolivia should guarantee the supply of Li to the world on clear market conditions; and (4) exploitation and industrialization of Li should be sustainable and integral. As plausible as they might seem, these conditions do not seem to conform the basis for a reasonable strategy of development of the lithium resources in Bolivia. However, if the car revolution takes off, chances are the government will be forced to revise its decision to go on its own.
Second, at the physical level, the brine resources in Bolivia need to overcome at least the following hurdles: (1) the low evaporation levels at the Salar de Uyuni ; (2) their high Magnesium-Lithium ratio; and (3) their lack of free access to the sea. As reported at the First International Forum on Science and Technology for the Industrialization of Lithium and other Evaporitic Resources held in La Paz in October 2009, the University of Potosi (with the assistance of the University of Freiberg from Germany) appears to have made important progress aimed at improving evaporation rates at Uyuni using dynamic cones of intensive evaporation. Similarly, both the government’s pilot project and the University of Potosi announced that they were able to separate Mg towards the end of the process taking recourse to different chemical procedures18. However, Bolivia’s lack of free access remains an important problem because it will most likely increase the cost of transportation of Li carbonate to the nearest maritime port while reducing its competitiveness.”

Full report:

By Juan Carlos Zuleta Calderón

With every Auto Show more and more models of Electric Vehicles unveiled and Plug-In Hybrids are coming into mainstream model range for the number of automakers.

“Availability of serious capital for Better Place and Nissan is very encouraging. You have to make your homework right in order to find the right financing opportunities in Electric Cars value chain. Newcomers on Technology or Auto making side will be evaporated overnight by Toyota situation as it is today. It is time when very risky plays on Lithium and REE supply side could provide actually more security as a sector entry with at least technology risk minimised.”

GM Volt

Fisker Karma